$Intl Cement^(KUO.SI)

In the latest string of announcements, Morgan Stanley (MS) has ceased to be a Substantial Shareholder in ICG. Today, I also learned that Mitsubishi UFJ Financial Group (MUFC) has a 21% controlling stake in MS.

Before I give my view, let me apologise for my misinterpretation of Morgan Stanley' s ownership in the 515m shares previously. The facts (i.e. before and after deemed interests) have pointed to zero accumulation and simply just " deemed to be interested" in 515m ICG shares by Morgan Stanley.

I won' t be able to comment on why Morgan Stanley ceased to be interested in the 515m shares anymore as there was no further information, but I can make a calculated guess that it was very likely an unsuccessful attempt to obtain the 515m ICG shares, why?

ICG only has 185m public shares with 5.5B shares owned by SSHs. The only way to get 515m shares was either for ICG to offer new placement shares or to purchase the shares from the SSHs. To date, there was no consideration (i.e. the sum of money) offered for the 515m shares.

Shares need to be purchased and do not come for free, especially when MS did not accumulate at all. The term " Aggregation of global position" used by MS could just mean something else instead of accumulation.

I remain hopeful in the demand for cement in Central Asia regardless of whether MS becomes an SSH. I forecast a record high cement production which will translate into record-high profits in 1H2021.

Let' s hope for the best in how market responds tomorrow.

- Charles