CapitaMalls Asia

I think the reason for CapitaLand to take over CMA is compelling but the price they offer is reasonable but not compelling. I hope they will revise the offer upwards.

(15-04-2014, 09:27 AM)egghead Wrote: I think the reason for CapitaLand to take over CMA is compelling but the price they offer is reasonable but not compelling. I hope they will revise the offer upwards.

Unless theres any significant stake shareholder of CMA who resist selling at 2.22, if not most likely this deal will go through. They probably will/already hit 70% by now from open market accumulation. the IFA will use premium to Book as well as premium over VWAP as a strong justification to recommend shareholders to accept the offer. Don't think we will see any revised offer (but still hope to).

(15-04-2014, 09:42 AM)kikababoo Wrote:

(15-04-2014, 09:27 AM)egghead Wrote: I think the reason for CapitaLand to take over CMA is compelling but the price they offer is reasonable but not compelling. I hope they will revise the offer upwards.

Unless theres any significant stake shareholder of CMA who resist selling at 2.22, if not most likely this deal will go through. They probably will/already hit 70% by now from open market accumulation. the IFA will use premium to Book as well as premium over VWAP as a strong justification to recommend shareholders to accept the offer. Don't think we will see any revised offer (but still hope to).

Yah, quite surprising that many are eager to sell below $2.20. Base on 3.9 billion share, they need to buy or get acceptance for another 975m shares to hit 90%.

(15-04-2014, 10:04 AM)egghead Wrote:

(15-04-2014, 09:42 AM)kikababoo Wrote:

(15-04-2014, 09:27 AM)egghead Wrote: I think the reason for CapitaLand to take over CMA is compelling but the price they offer is reasonable but not compelling. I hope they will revise the offer upwards.

Unless theres any significant stake shareholder of CMA who resist selling at 2.22, if not most likely this deal will go through. They probably will/already hit 70% by now from open market accumulation. the IFA will use premium to Book as well as premium over VWAP as a strong justification to recommend shareholders to accept the offer. Don't think we will see any revised offer (but still hope to).

Yah, quite surprising that many are eager to sell below $2.20. Base on 3.9 billion share, they need to buy or get acceptance for another 975m shares to hit 90%.

No short squeeze trap so far.
Only 2 lots will not sell till force to.

(15-04-2014, 09:42 AM)kikababoo Wrote:

(15-04-2014, 09:27 AM)egghead Wrote: I think the reason for CapitaLand to take over CMA is compelling but the price they offer is reasonable but not compelling. I hope they will revise the offer upwards.

Unless theres any significant stake shareholder of CMA who resist selling at 2.22, if not most likely this deal will go through. They probably will/already hit 70% by now from open market accumulation. the IFA will use premium to Book as well as premium over VWAP as a strong justification to recommend shareholders to accept the offer. Don't think we will see any revised offer (but still hope to).

Why yield without a fight? Minority shareholders shouldn't sell their shares st $2.20 & instead hold out for a more compelling offer. It's not a lost cause.

Anyone think it may be worthwhile to buy at $2.18-$2.19 instead?

(15-04-2014, 11:17 AM)egghead Wrote: Anyone think it may be worthwhile to buy at $2.18-$2.19 instead?

Not likely to fall unless there are potential fall through of the buyout. Rationale shareholders wouldnt want sell below 2.2 if the buyout is at 2.22

It is a pretty good move by Capitaland actually. They managed to raise a great deal of funds at low cost through the IPO.

http://www.stokflok.com/content/capitamalls-asia-being-offered-222-share

CMA is dual-listed on HKEx right?

So how will that impact the privatisation bid. I'm not sure if we know how many minority HK shareholders there are; and whether their actions will make a difference. Are HK shareholders generally more informed than Spore shareholders? And will they be more likely to resist the offer?

I think as with all privatisation bid, I will bid my time and see how the acceptance rate progressed. As long as the 90% threshold is not exceeded, I see no reason to throw my lot so early in the game. Of cos, when its game over, then I will just accept and move on. I see no pt in being a dissenting shareholder when they can likely compulsorily acquired your shares anyway.

Hi, I'm new to investing.

Have a question regarding this privatisation. What happens to shareholders who refuse to sell their shares when it is delisted?

My inference from what lonewolf posted earlier is that once 90% is hit, the remaining 10% must sell.

Edit: I did a quick read up after this post. Investopedia and a few other sources answer this. You continue to hold on the shares but trading it becomes OTC or pink sheet (which is something I don't understand yet)

You may reject the buyout offer but if Capitaland is able to garner over 90% of the purchase, then they will be able to take the company private.

Before it is taken private, Capitaland will have to do a last offer to buyout all investors at the last purchase price, likely to be $2.22. If the investor still choose to reject the buyout, the share will be a private share that is non-publicly traded. You may still sell the shares over private market (OTC) but the spread is big and highly illiquid.

(16-04-2014, 12:15 AM)Ferns Wrote: Hi, I'm new to investing.

Have a question regarding this privatisation. What happens to shareholders who refuse to sell their shares when it is delisted?

My inference from what lonewolf posted earlier is that once 90% is hit, the remaining 10% must sell.

Edit: I did a quick read up after this post. Investopedia and a few other sources answer this. You continue to hold on the shares but trading it becomes OTC or pink sheet (which is something I don't understand yet)