Practice Makes Perfect
Privatization - TWSCORP @ RM 1.10
Chin Kok Tan
Publish date: Mon, 28 Jan 2013, 12:24 AM
Chin Kok Tan
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Welcome to CK's Mergers & Acquisitions Theme Park - The BEST Has Yet to Come!
Offeror: Major shareholders of TWSCORP, which consists of:
- Perspective Lane Sdn. Bhd.
- Kelana ventures Sdn. Bhd.
- Seaport Terminal Sdn. Bhd.
Takeover Method: Privatization by way of selective capital repayment.
Amount of Capital Repayment: RM1.10 per TWSCORP share.
CK>> If you are following this deal, you should be able to guess that the notice of EGM will be announced pretty soon. Perhaps in the next 1-2 weeks, may be? I really don't know...
Based on the current price of RM1.04 (if you managed to grab some at this price in past few days), hold it tight, wait patiently for about 3 months (end of April 2013 I believe), you will be rewarded with 5.77% of profit.
[(RM1.10 - RM1.04) / RM1.04] x 100% = 5.77% profit in around 3 months.
Which is also equivalent to around (5.77% x 4) = 23% annualized profit.
CK>> If you are fear and worry so much about the impact of this coming GE13, and looking for some "low risk" opportunity, this could be one of the option. Low risk but 5.77% return in 3 months, equivalent to 23% annualized profit, quite OK and finger lickin' GOOD right? Haha...
CK>> Who know if shareholders of TWSCORP are not happy with the RM1.10 takeover price (much lower than its net asset value) and voted NOT in favour of the deal during this coming EGM? You should know the date of EGM soon.
So what could you do right now on this TWSCORP?
1) Forget it, do nothing.
2) Laugh at me: "5.77% profit in 3 months? You stupid CK! I can get better return than this with other stocks."
3) Buy now and hold until the release of notice of EGM. Then look at the circular from independent adviser (again, should be a typical NOT fair but reasonable deal!!!! Haih~). Then wait for the outcome of EGM. If everything in order, just wait for capital repayment while singing: "Give me my money back~ Give me my money back~".
6) Monitor now and wait for the outcome of EGM. Then you buy at a slightly higher price, still OK, can make a profit that enough to cover a meal of KFC/McD + Starbuck coffee.
Well, trade at your own risk. This is not a recommendation to buy TWSCORP. Good luck...
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CS Tan
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
carynchua
TWSPLNT price now is 4.36 which is much, much higher than the offer price. Can we hope for the same to happen to TWSCORP?
2013-01-28 02:34