usually the owner and their 'kakis' will buy and accumulate also. this is so they can get less resistance from shareholders and easier to get approval.
sharkirin, i have one last question, actually i have more, but this is more important, if the deal never go through, they would stay public, i believe the share prices would drop right?
it is a HUGE risk if the deal does not go thru, price will drastically drop. look at ingress' chart, the price drop after announcement but towards the end it bounced back because the deal looks positive.
warrant holders have no right to object to the privatisation of zecon via selective capital reduction (SCR)... they can only object to the warrant cancellation (WAC)
however, warrant holders will be forced to accept WAC if all minority shareholders agree to the SCR. imagine if the mother share is successfully privatised but warrant is hanging there..? who wants to buy your warrant?
this is the risk of playing warrant... because you do not own the company's shares, your opinion does not count. i only know people buy warrant coz its cheaper. but the risk is so much greater.
On behalf of the Board, AFFIN Investment wishes to announce that the Company had received a letter dated 1 April 2014 from Datuk Haji Bolhassan bin Di @ Ahmad bin Di (“Datuk Bolhassan”), a Non-Independent Non-Executive Director and a substantial shareholder of Zecon, informing of his irrevocable decision, following his further review, to vote against the Proposed SCR (“Notification Letter”) at the EGM of Zecon to be convened in relation to the Proposed SCR (“EGM”). Datuk Bolhassan directly holds 11,500,000 Zecon Shares, representing approximately 9.66% equity interest in Zecon or approximately 25.71% of the voting shares held by the Entitled Shareholders. Pursuant to the requirements of Practice Note 44 of the Malaysian Code on Take-Overs and Mergers, 2010, the Proposed SCR would be subject to the approval of the Entitled Shareholders at the EGM by at least 50% in the number of Entitled Shareholders and 75% in value to the votes attached to the Zecon Shares held by the Entitled Shareholders that are cast either in person or by proxy at the EGM. Further, the value to the votes cast against the Proposed SCR at the EGM must not be more than 10% of the votes attaching to the Zecon Shares held by the Entitled Shareholders. The Non-Entitled Shareholders have been informed of the receipt of the Notification Letter. The Board will urgently deliberate on the Notification Letter and decide on the next course of action to be taken in relation to the Proposed SCR where an announcement will be made in due course. This announcement is dated 2 April 2014.
SC should investigate the directors who wanted to buy out the company to see if they have purposely leave the company to its own device to rot so that it keeps reporting losses in order to support their case of buying out the company.
Zecon (ZEC MK) Technical BUY with +13.0% potential return Last price : RM0.840 Target Price : RM0.885, RM0.950 Support : RM0.805 Stop-loss: RM0.785 BUY with a target price of RM0.950 with stop loss placed below RM0.785. ZEC’s share price retraced from the recent high of RM0.885 before establishing support at RM0.785. Given yesterday’s strong gain which resulted in ZEC gapping up along the upward sloping 10-day and 21-day SMA lines, we foresee a continuation of the recent uptrend. Also, the emergence of buying interest as shown by a higher trading volume of 0.94m shares (vs 20- day average of 0.5m) should set up a new upleg. Going forward, we expect the share price to retest the previous high of RM0.885 which, if breached, should pave the way toward our medium-term target at the 1.38x Fibonacci extension target of RM0.950.
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....
Beginner1989
822 posts
Posted by Beginner1989 > 2013-07-16 16:26 | Report Abuse
ops when i find ingress. they are not listed already means they go private as well?