http://www.offshoreenergytoday.com/newfield-exploration-sells-malaysian-subsidiary-for-898-mln/

kcchongnz....appreciate if you could further explain on the potential annualized profit of 50% if one buys KHSB now....Im a newbie here....tq

Example:-

price for Warrant B (WB): RM0.26
Exercise price: RM1.85
WCT price after ex: RM2.38
if u choose to convert the warrant into share, the total cost for the share at RM2.11 (WCT-WB + exercise price)
u will be benefiting around RM0.27 profit (RM2.38 - RM2.11)

Considering the mother share price upon dilution is 2.38, WB is under value with exercise price 1.85. WB should be at least 0.53

Bonus issue with warrants

Proposed issuance of 3 bonus shares for every 20 existing shares and 1 Warrant D for every 5 existing shares. Bonus shares to be issued will not be entitled for Warrants D
The entitlement date will be determined later and the proposals are estimated to be completed by 4QCY12.
The 3-for-20 bonus issue represents an adjustment factor of 0.8696x to WCT’s share price and out TP upon ex-date. The indicative exercise price of Warrant D is assumed at RM2.25, which has a 5-year lifespan and a conversion ratio of 1x.
Pursuant to the proposal, Warrants B’s (closing price: RM0.22, expiring on Apr-13) exercise price of RM2.50 will be adjusted to an indicative exercise price of RM1.85, while Warrants C’s (closing price: RM0.43, expiring on Mar’16) exercise price of RM2.75 will be adjusted to an indicative exercise price of RM2.04. Both warrants have a conversation ratio of 1x.

Pathew, here is the formula...

WCT mother share price will be diluted upon the BONUS ISSUE.
(RM2.74 x 20) / 23 = RM2.38

W-B 1.85; W-C 2.04

It could be the first gas of Berantai