Wednesday, February 4, 2009
IOI Corp to buy out property unit: RHB

IOI Corp, Malaysia’s second biggest publicly traded planter, plans to buy out its property unit, RHB Research Institute Sdn Bhd said in a report, citing IOI’s management.
IOI will offer to buy the shares it doesn’t own in IOI Properties Bhd using cash and new IOI shares, the brokerage said in the report today.
IOI Properties is valued at about RM1.84 billion (US$509 million) based on its last traded price of RM2.22 at the close on January 30. Shares of both IOI and IOI Properties are suspended from trading until the end of the day pending the announcement. IOI owns 74 per cent of IOI Properties, according to data compiled by Bloomberg. - Bloomberg

Cilli sauce :
http://sensecents.blogspot.com/
http://www.btimes.com.my/Current_News/BTIM...icle/index_html

What will happen to IOICORP's and IOIPROP's shares?

This post has been edited by kmarc: Feb 4 2009, 06:47 PM

When did this market speculation start as I didn't hear a word of it until today.....

Anybody free to explain what happens to shareholders of IOIPROP (I don't understand the above )?

This post has been edited by kmarc: Feb 4 2009, 09:14 PM

0.6 share of the IOIPROP price? That's the part I don't understand.

Say that a shareholder holds 1000 shares of IOIPROP at RM2.00. How's the calculation?

Thx for the explanation.

So,

IOIPROP 1000 shares bought, let say, at RM2.22 = Spend RM2200

Convert to,

IOICORP 600 shares @ RM3.92 = RM 2352

+

Cash 1000 x 0.33 = RM 330

Total = RM2352 + RM330 = RM 2652

In the end, for holding 1000 shares of IOIPROP @ RM 2.22, you gain RM 2652-2200 = RM452!!

Another noob question - Theorectically, does that mean you can't buy IOIPROP's shares anymore or nobody would sell to you at a loss? What would happen to the share price of IOICORP? Drop?

Edit : Aahhh! Looks like investors may take this news negatively (referring to IOICORP's share) : http://www.btimes.com.my/Current_News/BTIM...icle/index_html

This post has been edited by kmarc: Feb 4 2009, 11:51 PM

I see..... looks like the prices have already adjusted.....

I didn't think about acquiring those counters as I don't fully understand the process involved. However, I disagree with you on the first part...... we always think about money whether it is on, under or beside the table...

Anybody buy anything? So bored.....

This post has been edited by kmarc: Feb 5 2009, 11:13 AM