Sell @ $1.755
Cleared my last few lots… Q416 Results last evening looked good, with EPS maintained, despite the enlarged share base after the 18-for-100 Rights Issue. But, no div declared as in the midst of a Scheme Offer, with voting fixed on 31-Mar… Offer Price is $1.78 ie I sold at 1.4% discount, more if incl transaction costs…
Share price +5ct today, after languishing at a bigger discount of 4-5%, since Offer started… Likely reason for the discount is the mkt expects likelihood of failure to be high, as it also requires a majority show-of-hand.. This means minority shareholders can influence the outcome, if they turn up in large numbers… The bigger shareholders (Funds) had pared down their stake, altho they have indicated they plan to vote for the Scheme… They must be taking some profits first (in case Offer get voted down) as mkt price had shot up due to this Offer…
Share price may correct if Scheme fails, altho the rise today may be an indication mkt thinks it won’t fall a lot due to good results…
Will continue to follow and buy if prices should drop… 😀