SOUTHERN STEEL BERHAD - RCULS 2015/2020

KLSE (MYR): SSTEEL-LB (5665LB)

You're accessing 15 mins delay data. Turn on live stream now to enjoy real-time data!

Last Price

0.80

Today's Change

0.00 (0.00%)

Day's Change

0.80 - 0.81

Trading Volume

2,000

Be the first to like this.

3 comment(s). Last comment by Jimmy Lim 2018-08-15 22:03

Solo

244 posts

Posted by Solo > 2017-04-28 11:21 | Report Abuse

Can someone explain to me how does this LB work?

gforce2

204 posts

Posted by gforce2 > 2017-04-28 14:36 | Report Abuse

SSTEEL-LB is a loan stock, with fixed interest repayments of 5% (5 sen/yr, paid at half-yearly intervals), from 2015-2020. As far as I can figure, it is a 1:1 conversion to mother share (The RM1.05 exercise price refers to the initial price to buy the loan stock in 2015). Conversion can be done at any time, via your remisier/brokerage.

The reason for the low volume is because -LB stockholders were getting 5 sen annual returns (better than FD) while mother share had no dividend since 2014.

Given that the mother share just declared a 3 sen dividend ... you can expect some interest in this counter, as a cheaper entry to own the mother share.
Note that at RM1.40, loan stock interest works out to only 3.57% p.a.


References:
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4205517
http://www.bursamalaysia.com/market/listed-companies/company-announcements/3644697

Jimmy Lim

291 posts

Posted by Jimmy Lim > 2018-08-15 22:03 | Report Abuse

cheap.

Post a Comment
Market Buzz