Apr 3 2015, 06:28 PM
My guess is that SUNWAY is cash-rich so they are going to pay for it out of capital, which means that SUNWAY will be worth less after that, which means that the price will drop.
QUOTE
Under the proposed listing exercise, Sunway has proposed a 1-for-10 distribution-in-specie of free SCG shares to shareholders of Sunway.
Free shares who is paying for this? nothing is really free. My guess is it will be paid out of capital, so price for SUNWAY might drop.
QUOTE
“Besides the proposed distribution-in-specie, a special cash dividend will also be declared and distributed to the shareholders of Sunway from the proceeds of the proposed offer for sale of SCG shares,
This means the price of SCG might drop after listing.
1. Sell SCG shares at P price (this means SCG is worth P x no of shares)
2. Declare dividend for SUNWAY shareholders after listing, which means now SCG is worth ((P x no of shares) - dividend) so theoretically price should drop after dividend declared, because value has dropped?
This post has been edited by wodenus: Apr 3 2015, 06:36 PM
Quote
some companies have 75% 
0.0293sec
0.47
6 queries
GZIP Disabled