Based on IJM at RM6.80 and IJMLAND at RM3.38, sell IJM and buy 2xIJMLAND shares. You will get back the same amount of IJM shares eventually and get 40sen dividend for free!
Tuesday, 10 June 2014
Abitrage opportunity in IJM and IJMLAND
Given the proposed privatisation of IJMLAND by IJM, there could be an arbitrage opportunity for existing IJM holders if the shareholders plan to hold IJM for long term, at least until the completion of the privatisation, and provided the acquisition goes through.
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Similarly, if you want to invest in IJM for long term, it is cheaper to buy IJMLAND and wait until the completion of the exercise. Again, provided the privatisation goes through
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