only problem is there could be delays in deal completion and also small risk of the acquisition may not be approved. meanwhile your capital will be tied up. but other than that, yes you could earn that 6-7% by hold and wait
Tin kosong Flying Chicken Head talk nonsense holland no 1 sifu Calvin rank 151...how many ppl participate in 2017 stock pick? Is 170 ppl mean he is bottom 20....haha...shame like no tomorrow
PROPOSED ACQUISITION OF 497,768,820 ORDINARY SHARES OF RM0.50 EACH IN ICON OFFSHORE BERHAD (ICON) (ICON SHARES), REPRESENTING 42.3% EQUITY INTEREST IN ICON, FOR A PURCHASE CONSIDERATION OF RM248,884,410 OR RM0.50 PER ICON SHARE TO BE SATISFIED VIA THE ISSUANCE OF 311,105,513 NEW ORDINARY SHARES OF RM0.50 EACH IN UMW-OG (UMW-OG SHARES) AT AN ISSUE PRICE OF RM0.80 PER UMW-OG SHARE (PROPOSED ICON ACQUISITION); AND PROPOSED MANDATORY GENERAL OFFER (MGO) FOR ALL THE REMAINING ICON SHARES
AN ISSUE PRICE OF RM0.80 PER UMW-OG SHARE (PROPOSED ICON ACQUISITION); AND PROPOSED MANDATORY GENERAL OFFER (MGO) FOR ALL THE REMAINING ICON SHARES
What Does that mean ? 1) 50 sen cash for each ICON share after delisted ? or 2) 80 sen UMWOG share for each ICON share ? or 3) 80% of closing UMWOG share price ?
But one of the IB values UMWOG at around 68 sen only. So could be either cashing out 8 icon shares @ RM4.00 in total or exchange for 5 UMWOG shares fair valued @ RM3.40 for the short term
If take 311,105,513/497,768,820 you get 0.625 meaning 1000 Icon share you end up with 625 UMWOG shares after consolidation. If UMWOG at 73 sen better take 50 sen cash.
Posted by SHQuah > Jan 22, 2017 08:56 AM | Report Abuse PROPOSED ACQUISITION OF 497,768,820 ORDINARY SHARES OF RM0.50 EACH IN ICON OFFSHORE BERHAD (ICON) (ICON SHARES), REPRESENTING 42.3% EQUITY INTEREST IN ICON, FOR A PURCHASE CONSIDERATION OF RM248,884,410 OR RM0.50 PER ICON SHARE TO BE SATISFIED VIA THE ISSUANCE OF 311,105,513 NEW ORDINARY SHARES OF RM0.50 EACH IN UMW-OG (UMW-OG SHARES) AT AN ISSUE PRICE OF RM0.80 PER UMW-OG SHARE (PROPOSED ICON ACQUISITION); AND PROPOSED MANDATORY GENERAL OFFER (MGO) FOR ALL THE REMAINING ICON SHARES
SHARES in Icon Offshore Bhd (fundamental: 0.20/3, valuation: 0.90/3) triggered our momentum algorithm last Friday for the third time this year. A total of 54.7 million shares were traded compared with a 200-day average volume of 1.4 million shares.
The company was red-flagged by our proprietary algorithm, suggesting that investors should exercise extra caution when trading in its shares.
The counter was one of the most actively traded on Bursa Malaysia after it announced that UMW Oil & Gas Corp Bhd (UMW-OG) would buy Ekuiti Nasional Bhd’s 42.3% stake in Icon Offshore.
UMW-OG will then undertake a mandatory general offer for the remaining shares in Icon Offshore at 50 sen apiece, to be satisfied by either cash or issuance of new UMW-OG shares at 80 sen apiece. UMW-OG does not intend to maintain the listing of Icon Offshore.
The exercise marked the beginning of consolidation among local oil and gas players amid a challenging landscape in the industry.
The offshore support vessel operator’s shares reached an intraday high of 48 sen before paring gains to close up 6.9% or three sen at 46.5 sen.
Hello sifus. newbie here. I have 20k shares in Icon. With the recent MGO, what do I do if I were to convert all to UMW OG shares? How many shares do i get? If i dont opt to convert then automatically i get rm.50 per share? Really confusing :p
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Posted by jayalbert > 2017-01-20 10:35 | Report Abuse
correct @sheep, it will b either a 6% or 7% return, depending whether one buys at 47 c or 46.5 c