Pls read the announcement from KFC on 19 Dec: "On behalf of the Board of Directors of KFC, OSK Investment Bank Berhad wishes to announce that the High Court of Malaya at Kuala Lumpur had, on 19 December 2012, granted an order confirming the special resolution for the KFC Capital Repayment. The sealed order will be extracted and an office copy of the order will be lodged with the Companies Commission of Malaysia at a later date for the KFC Capital Repayment to take effect."
Here is the 2nd announcement regarding the timeframe to complete the transaction: "On behalf of the Board of Directors of KFC, OSK Investment Bank Berhad wishes to announce that KFC and TPSB had, on 19 December 2012, mutually agreed to further extend the Completion Date from a date falling on or before 31 December 2012 to a date falling on or before 31 January 2013.
Save for the above, all the other conditions, covenants, provisions and terms contained in the BSA shall remain valid and enforceable.
I have strong feeling that Kulim will surpass RM5.00 very soon. Alreaady shifted from FGV @4.57 and bought Kulim @4.45 last few weeks and will buy some more by this week. Hopefully I will recover my loss from FGV.
I would like to convey my heartiest congratulation to the management of FGV and kerajaan BN as a whole for giving me the opportunity to purchase FGV during first day of listing @5.45 and making loss of around 80k.May God bless all of you. Hidup FGV!
The capital repayment can onlu happen if the sale of KFC and TPSB is completed. If they keep pushing the completion of the transaction now from 31/12/2012 to 31/1/2013, investors may also lose interest.
As Kulim declared div of 91 cents, it will dilute WC as div is not good for warrant holders. However, before the ex-date, by right it should be a rally for the warrant, true?
adjustment will be announced in due course. assuming after ex, then mum will go from now 5.12 - 0.91 = 4.21. WC at 1.07 + 3.85 = 4.92, let's say adjust from 3.85 to 3, 1.07+3 = 4.07
WC only in discount after adjustment but the question is when is adjust coming in ?
Hong2, sorry to ask this question again cos i dont understand the outcome of the announcement. is it positive news or any negative impact in the wc share. TQ for sharing...
With the adjustment of the exercise price of Wc from 3.85 to 3.13, it appears that there is very good potential of gain in punting on Wc. I envisage that with the announcement of the special dividend yesterday, Kulim share price would slowly climb up from yesterday's closing price of 4.92 to around 5.50, say by the ex-date on 11/1/2013. The adjusted price of Kulim would be about 4.40 (5.50-0.90). Then the intrinsic value of Wc would be 1.27, or about 23% higher than today's closing of 1.03. Some more as Wc has 4.5 more years to expire, the additional time value which has not been included is also substantial. This is true only if Kulim share price goes up to 5.50 by 11/1/2013.
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....
Hong2
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Posted by Hong2 > 2012-12-21 12:19 | Report Abuse
When the announcement? Thanks!