QUOTE(iamsobloodysick @ Jan 17 2011, 07:33 PM)
Guys, I have until next Monday to decide whether or not to accept MTD's offer of RM9.50 per share. The Edge Weekly ran an article about this privatisation and was of the opinion that the offer price wasn't attractive. I read that the board already hired an independent adviser to do the valuation. But I've yet to get their valuation report.
I would like to hold on to this stock but the privitisation offer is unconditional and it's not subject to the acceptance level. If the public spread is less than that required by Bursa, MTD will not want to maintain its listing status. All minority shareholders have been "warned".
This is the first time I own a stock which is being privatised. I'd like to ask how the privitisation process will go about. Under what circumstances will the offeror revise the offer price? If I reject their offer now, can I still sell them my shares before the stock is delisted from Bursa.
Thanks.
Very seldom offeror revise the offer price if the privatisation has already entered into unconditional stage. It is not fair to the earlier shareholders that accept the offer in the first place.
So don't put high hope on revise offer.
Generally offer price only be revised if there is not enough acceptance in the first place, by then offeror table a totally new offer, and discard the previous offer.
As long as the share is traded in the market, you can sell the share in open market.
If the public spread requirement is not fulfilled, then KLSE will put out announcement and put a date line on it before delisting process underwent, and when it suspended for delisting process, no way you can sell those share already.
So if you don't want to accept the offer, be update about the public spread requirement and date line of it or suspend of share trading.