Wing Tai Holdings

[Blackjack]

What a lousy offer!

[WolfT]

sell him the offer price 1.39 then buy back from open mkt 1.30earn some kopi money.

[freedom]

once the offer ends, the price will be back to normal again.....

he already said, he is not going to privatize and delist the company.

based on last closing price of 1.18

the current price should be around: 1.18 * 0.85 + 1.39 * 0.15 = 1.21

so would you buy @1.3 and can only sell 15% to him?

[old friend]

What does partial offer to minority shareholders means?

Thanks!

It should mean than the boss is willing to pay $1.39 for each share you own, up to 15% of your holdings. Eg. if you have 100 lots, he will buy 15 lots from you for 15 x $1390. It is still subjected to approval though

Thank you very much!

[WolfT]

i have 100 lots i can sell 15 lots at 1.39 to him. i just buy back 15 lot at current price 1.28. i earn 11cts per share for my 15 lots. is that correct?

[sgpunter]

Yes WolfT you are right. Provided price remains at $1.28

[WolfT]

Yes WolfT you are right. Provided price remains at $1.28

I just need to buy 15 lots first, now at current price.Any difference?
Once i sell to him, I still have 100lots at e end of e day.

[sgpunter]

Yes WolfT you are right. Provided price remains at $1.28

I just need to buy 15 lots first, now at current price.Any difference?
Once i sell to him, I still have 100lots at e end of e day.

Yes, there is a difference. If you buy 15 lots first before the offer ends, you will be selling 15% of 115 = 17,250 shares.

If you currently have 100 lots, you will be selling 15 lots to Cheng at $1.39. You may be hoping to arbitrage and buy back the 15 lots at a price lower than $1.39 after the offer ends but that will depend what is the price after the offer. Could be higher, could be lower.

[WolfT]

ok.I know what u mean.
I have 100lots
Today i bought another 15lot at $1.30 each

1300*15 + 60(brokage) =$19560

now i have 115lots

i take up e offer i sell mr Cheng 17.25lots

1390*17.25= 23977.5

now i have 115-17.25= 97.75lots

23977.5-19560=4417.5

I now have $4417.5 extra for 2.25lots less which i think is a good kopi money don't u think?

[sgpunter]

Hi WolfT, I can certainly see where you are coming from. Yes, you get good kopi money and the only reason is because you are coming from the perspective of holding shares BEFORE the offer was made.

Let's consider it from the perspective of someone who has no shares now and is thinking of following your theory to try to arbitrage and earn kopi money.

Buy 115 lots at $1.30 = $150k (rounded to whole number after transaction costs included)
Sell 17.25 lots at $1.39 = $24k (rounded to whole number)
Remaining 97.75 lots now costs the buyer $126k which means the buyer average purchase price = $1.289

Factoring in the transaction costs of odd lot trading, there is not much kopi money to be made.