Monday 24 September 2012

IGB Reit - Arbitrage Opportunity

If you have IGBREIT and plan to hold the shares not less than 6 months do not plan to sell before 10 October 2012 (see announcement dated 21 Sept 12), at current share prices of RM1.40 and RM9.25 for IGBREIT and KASSETS respectively, there is an arbitrage opportunity.


For every 1 KASSETS share, one will get 5.24 shares of IGBREIT and cash of about RM2.75/share.

After deducting transaction fee, one will still get more than 5% of arbitrage gain.

Buy KASSETS in multiple of 5,000 to avoid odd lots.

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