Friday, 12 October 2012

Kassets Reference Price Post Distribution-in-Specie

Kassets had a distribution-in-specie of Igbreit to the shareholders of Kassets on the basis of 524 units in Igbreit for every 100 shares in Kassets held on 5 October 2012.

To arrive at the share reference price of Kassets on the ex-date (3 Oct 2012):

Kassets's share closing price immediate before ex-date - 5.24 (Igbreit's unit closing price before Kassets' ex-date for the distribution)

= 9.51 - 5.24 (1.38) = RM2.27/ share (rounded down)

More examples of calculation of theoretical ex-price for various corporate exercises here.

2 comments:

  1. In your previous post you have indicated that the distribution value of KAssets is RM9.30/share which will yield 5.24 IGB REIT + RM2.75 cash.

    Would you mind sharing your views why KAssets after ex-distribution is now selling ca RM2.82?

    My opinion is that KAssets will further distribute interim dividends which have been waived for FY2012(up to 20/9/2012) including accrued interest from deposit of sale proceeds of the 2 malls and sales of IGB REITS arising from the fractional units disregarded while rounding down the shareholders' entitlement.

    I believe the RM2.82 price is a discounted price from the actual payout of RMX, say no less than RM3.00 upon winding up the Co in 6 months' time.

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    Replies
    1. The distribution of RM2.75/share was purely based on the revision in IGBREIT IPO price from RM1.00/share to RM1.25/share.

      With current price of RM2.82, it appears that the distribution amount will be greater than RM2.75

      I think they will provide the breakdown when they announce the distribution amount...

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