can any sifu explain the impact on warrants price? I can understand the mother share, but how about old warrant, whats the impact? or anyone have a link so refer to? THank you
For 1 warrant, you will be given 0.22 extra warrant meaning 1 warrant = 1.22 warrant after the issue and the exercise price comes down from RM1.89 to RM1.55 Sifu James, how to you get the ex-price of RM2.50, don't mind share here?
fruni & mudwyx: please read the company's announcement mysmo1 & ck: ask/phone your remisier or the online trading company's dealer Wong kok hoong: ex-rights issue mah
for those don't want to subscribe right issue can sell the right in open market on 4 may to 11 may. check mkh-or price in this period and don't waste the chance to get back some money due to share price adjusted.
Management is giving warrant holders a better deal than mother share holders so they are selling MKH mother share -- hence drop. Remisier friend says this has practically never happened before. Wonder why? Is it because management are holding more warrants than mother share (since it is cheaper then)?
Dear fellow sifus and friends, I know this question has been asked before, and I am asking again because I have not really seen a clear response.
Q: I am currently holding the warrants (MKH-WB); I do not hold any of the mother share. I see that the current MKH-WB has been adjusted down for the bonus issue. Can I confirm that as warrant holders will not be entitled to the rights and bonus issues, nothing will happen to our existing unit and we will suffer the direct losses from the adjustment?
@lcng123 thank you so much for the kind response. I know that applies for mother share; is this applicable to existing warrant holders. My interpretation is we are not entitled (I DO NOT hold any of the mother shares, only warrants), can you please clarify?
jafon1989, don't worry -- you are getting a better deal than the ms holders. As explained by lcng123 you don't have to do anything and you will get 22% warrants which you can convert to MKH ms later at only RM1.55. What a kind management! No need to spend time and money (conversion cost + remittance cost). I am kicking my ass now as I was advised that it will be better by converting early. With ms price dropping you can imagine the huge amount of curses heaped upon those who proposed this great idea.
@smallvestor thank you for the clarification. I am expecting a better contribution from MKH's plantation and development sector for the coming QR announcement, which is expected on 29 May 2017 (estimation). CPO prices were at its all time high/higher during December - March. Hope this exercise would benefit all shareholders before the push before the release of the upcoming QR.
From RHB Investment..While MKH’s property development business may be facing some headwinds, we believe its prime landbank location in Kajang/Semenyih/Cheras will bode well for it in the medium term, given the increased connectivity near the three new MRT stations, as well as its increasing focus on the affordable housing market. In the next few years, its plantations division could rise in prominence, given the increasing FFB yields leading to lower unit costs. While MKH’s plantation landbank is still relatively small, it continues to expand with its latest acquisition in 2016 being 2,445ha of landbank in Kalimantan. We value the company with SOP, using RNAV for property and P/E targets for the plantation and other divisions; we attribute a 50% discount to RNAV to value the property division, a 2018 P/E target of 15x for the plantation division (in line with other small plantation companies) and 8x for the other divisions. We have diluted the share base for rights and bonus issue, giving us a fair value of MYR4.00. This is for longer term...
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....
gthhh
172 posts
Posted by gthhh > 2017-04-21 17:42 | Report Abuse
thanks @quekkeong in MKH we trust