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.
15 comments:
老虎大大；
如果我接受RM5.10，决定把SUNCITY卖出，要怎么卖？
而如果我决定要新公司股票- NEWCO，又需要怎么做？
use Suncity RM5.10 exchange to RM2.80 Newco, its like use RM 5100 to change RM2800...
if i want Newco share, better buy from the market with RM 2.80, and will not use my RM5.10 suncity to exchange it...
you have missed out the 20% cash back, so the new share+cash=suncity share worth 5.10
Hi,
This is just a proposal and subjected to approval from various parties. I think an EGM will be held to get shareholders' approval as well.
The share exchange is not 1 share to 1 share, if you hold SunCity, you will get more NewCo shares, if you hold Sunway or SunCity-WA or Sunway-WC, you will get less NewCo shares. Refer to my table above.
i understand how to calculate, thanks
another thanks to harimau, after i activate back innity, the earning really higher day by day:)
Actually, you can make use of the free warrant to overcome the odd lot problem.
Just exercise some of the free warrant so that your share is in multiple of 100, then no more odd lot. :)
Are they, the sunway going to buy back all the shares in the market or they will just buy up to a certain percentage of shares, then they can proceed with the merging? then what happen to those who's still holding sunway or suncity share?
@Anonymous
They will not buy back from you directly.
If you hold the share, it is proposed to be converted to 3 items according to the table above.
because it was mentioned that they'll offer the shares, let say for suncity 5.10, and 20% will be paid in terms of cash and the rest will be converted into newco share. So that means I'll still entitled for the cash and also the newco share. Am I right?
@Anonymous
Beside that, you'll get some free warrants too.
Why is the share not moving since it looks like a pretty good deal for shareholders?
@Shelyn
It has already risen from around rm4 to current level after the news announced.
From rm4.5 to rm5.1 is around 13%, and it takes roughly about half a year to materialize.
If you think that 13% return in half a year time is good enough, you can definitely buy and hold.
Some people think that they can do better than 13% in half a year with other stock, and some people doesn't have the holding power. This could be the reasons why it is still at current level, and slowly moving up to around rm5 in half a year time.
Guys, do you think the new IPO, which will be launch at the price of 2.80 will go up further?
when is the merger?
Post a Comment