Posted by iska > 2013-03-02 07:58 | Report Abuse

Yes, i have the same analysis too, and that's what I did. But do u know is the new shares subscribed from the rights are entitled to the 7.6 ct dividend. If not, then, will it mean it is of a different value compared to holding on to exisiting Mah Sing mother share.

I also find the bonus shares interesting, as the new shares and warrants alloted from the rights subscription are also entitled to the 1-for-5 bonus issue. Also, the warrant exercise price will be adjusted to $1.98, post-bonus. This makes it more attractive. Shd warrant price trade at 30ct, that will mean a total payout of $2.28 to buy a mother share, vs ex-bonus price of $1.75 (assuming last day closing price of $2.10 for the mother, prior to ex-bonus date), ie, a premium of 30%, which is fair given a gearing then of about 5.8X.