*consolidation

Calvin

You only address the consolidation part not reduction part.
Before the consolidation there's a reduction.

Let's say I have 10,000 shares at 0.10, cost is RM1000.
Assuming a capital reduction of 50% or 2 becomes 1, I end up with only 5,000 shares x 0.10 = RM500.

Loss of RM500 or 50%.

After consolidation of 5 into 1, I'm left with 1,000 shares. Adjusted ex-price is 0.50.
Value = 1000 x 0.50 = RM500

Still a loss of RM500.

To recover my cost, the share price has to go up to RM1.

The consideration make no difference, it could be a good thing.

The killer is the capital reduction.

Calvin

Share consolidation and capital reduction are 2 different things.

SC doesn't affect the holding value.

CR does. The effects depends on the amount of reduction.

In Scomies case the reduction is like 50% or 2 becomes 1 if I'm not mistaken.

Correct me if I'm wrong.