just to help umwog shareholders understand the proposal
1. umw, the current major shareholder, will distribute their umwog shares free to their shareholders, so umw will not participate in the rights issue and will cut links with umwog 2. umwog is buying 42% of Icon from Ekuinas at 50c by issuing umwog shares at 80c 3. then it will launch a mgo to take icon private at 50c, icon shareholders can choose cash or shares 4.umwog is also buying another company from ekuinas 5. to fund all these, umwog will do a rights issue to raise RM1.8b, their current market cap is around RM1.9b, that shows the size 6. umw will not participate in the rights issue but the umw shareholders who get free umwog shares can participate if they want. ekuinas and icon shareholders who gets umwog shares for selling icon also entitled to participate
personally, I think umwog is just bailing out ekuinas on their bad investment in icon. ekuinas just throw in another profitable company to sweeten the deal. umwog is already deep in debt and buying icon who is also deep in debt.
rights issue even umw also don't want to get involved anymore, passing the burden directly to umw shareholders. shareholders really have to wait for long term until oil & gas support industry recover, which could lag o&g industry by 1-2 years
no irrevocable undertaking by major shareholder to undertake the rights issue, maybe they will add in circular, but now the lack of umw support is sending a bad signal
Posted by Andy88 > Jan 20, 2017 12:27 AM | Report Abuse
Sky is the limit. Umwog as mother will bring her son icon to fly together. Merging sure bring benefit for umwog and icon, 2017 is o&g theme play. Umwog want increase the market cap and value to beat other oil stock. Mark my word
HA HA HA, this Andy88 really stupid, mark his word some more, super idiot, ha ha ha
80c is what ekuinas willing to take. no guarantee they can keep it above 80c when market is bearish over the proposals. that's why they already prepare rights issue for the scenario all icon shareholders taking cash
icon shareholders have 2 options, either accepting the shares or; opt for 50 c cash; my point is let's not complicate the matter. I'm 1 of the shareholders, guess which one i'll select in terms of these 2 options, certainly the latter, ie go for 50 c cash..
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Alexi
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Posted by Alexi > 2017-01-20 07:37 | Report Abuse
government link investment fund will holds more than 70% after merger...