Practice Makes Perfect

OSK + RHB Merger (29/12/11)

Chin Kok Tan
Publish date: Thu, 29 Dec 2011, 09:34 PM
Welcome to CK's Mergers & Acquisitions Theme Park - The BEST Has Yet to Come!
CK>> According to unidentified, but some how reliable and some how not really reliable sources (so, reliable or not reliable? It's really unpredictable, my brothers!). RHB's total offers price for OSK Holdings is ranged between RM 1.8 billion to RM 1.9 billion. Let me do a quick and simple mathematics calculation. (For you information, my math is damn so GOOD!!!! Hehe...).

OSK Share Issued: 963,998,922 shares

Assumptions:
Offer Price 1: Total RM 1.8 billion = RM 1.87 per share (About 1.17 times of BV) @_@'''
Offer Price 2: Total RM 1.9 billion = RM 1.97 per share (About 1.24 times of BV) @_@'''

Expectations:
- Hopefully this offer price is not true! The offer price is simply too low~
- If this is purely share swap, then what value is applied to the RHB shares? Hopefully as low as possible so that we can get more RHB shares.
- At the same time, you may also hope RHB's share price fly up as high as possible after official announcement, so you will earn more after share swap due to lower RHB's reference price (If you can still remember the UEMLAND takeovers SUNRISE deal at early year 2011 :D. Yes, I remember that, I hope the same may apply to this OSK deal.)

Calculation >> Stop thinking and speculating!!! Sit down and wait for official announcement before the given 3 months negotiation period by BNM lapsed on mid of January 2012.

Good Luck! (in green color so that share price will be in green too tomorrow, hehe...)
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danial

OSK Holdings is only selling its wholly owned unit, OSK Investment Bank , but not the Holdings company, so the above assumption is not correct.

2011-12-29 23:18

Tan Chin Kok

More or less the same... You dont get surprise when see more than 95% of OSK Holdings' revenue & asset are generated from OSK invesment bank unit. Please read their Annual Report 2010 for more information about the entire corporate structure...

2011-12-30 01:37

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