After SunCity (6289) and Sunway (4308) suspended for 2 trading days awaiting for this announcement, the Sunway Group has proposed to buy over SunCity (Sunway City Berhad / 双威城) and Sunway (Sunway Holdings Berhad / 双威控股) with a private company called Sunway Sdn Bhd, which is controlled by the same boss Tan Sri Jeffrey Cheah Fook Ling (谢富年).
After the merger, the new company (newco) will be relisted.
It is proposed that:
- SunCity to be bought over at the price of RM5.10 per share, a premium of RM0.61 (13.59%) to its last closing price of RM4.49.
- SunCity-WA to be bought over at the price of RM1.29 per warrant, a premium of RM0.17 (15.18%) to its last closing price of RM1.12.
- Sunway to be bought over at the price of RM2.60 per share, a premium of RM0.35 (15.56%) to its last closing price of RM2.25.
- Sunway-WC to be bought over at the price of RM1.50 per warrant, a premium of RM0.36 (31.58%) to its last closing price of RM1.14.
- Newco shares at the new listing price of RM2.80 representing 80% of the offer price.
- Cash representing 20% of the offer price.
- 1 free Newco warrant for every 5 Newco shares. Exercise period for the Newco warrant is 5 years.
What you will get are all the things in the last 3 columns. I think the free Newco warrant will have an initial listing price of RM0.005 and it is up to the market to give it a value during its 1st trading day.
The bad thing is, you will probably have some odd lots of NewCo and NewCo-WA after the exercise.
Disclaimer: This article is intended for sharing of point of view only. It is not an advice or recommendation to buy or sell any of the mentioned stock counters. You should do your own homework before trading in Bursa Malaysia.