VIZIONE formerly known as ASUPREM have proposed to acquire 100% stake in Wira Syukur Sdn Bhd (WSSB) for a total consideration of RM280.0m. The purchase of WSSB entails a share issuance of up to 976.2m at RM0.11 amounting to RM107.4m while the remaining balance of RM172.6m will be satisfied via cash.
Issuance new shares 976.2m at RM0.11.. almost 1 billion new shares... price how to move up?
Private placement exercise entails. VIZIONE also proposed to undertake a private placement exercise of up to 1.7b shares to fund the cash portion of the acquisition of WSSB and assuming the same placement price of RM0.11, VIZIONE would be able to raise up to RM185.6m. The balance funds post acquisition will be for working capital purposes and also expenses arise from the acquisition of WSSB.
Vizione propose acquire WSSB via 976.2 million share issuance at 0.11 and also propose undertake private share placement up to 1.7b shares assuming at 0.11.
Total is abt 2.7billion shares. With existing shares 900million+ shares floating.. after complete will have abt 3.7 billion shares dilute the share price. New shareholder WSSB and from private placement shares value at RM0.11 which is much more cheaper than current market price.
With so many number of shares coming out.. its not easy to move unless the big boss/players want to push up later on.
Vizione give 0.11 new share issuance to WSSB and new private share placement also assuming at 0.11. Market trading at 0.145,, those get new shares and private shares later can sell at public instant get money.
The new main shareholder and private share placement got the shares only at 0.11 total abt 2.7 billion new shares. Retailers still want to buy at 0.145-0.15 so high price later sell to who?
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....
beginner165
192 posts
Posted by beginner165 > 2017-09-21 10:40 | Report Abuse
volume start flowing in... just wait patiently... sweet rewards coming soon..