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Saturday, 3 January 2015

QL VS LAYHONG: (11 Nov 2014)

Was browsing news and came to this article:
^-^ , not suprising QL came out and advise shareholders to sell to them.
As QL ownership of Layhong hits 38%:
QL has noticed the acceptance/surrendering of Layhong shares to them is not likely to be good/drying up.
Advising 'shareholders' not yet surrendering Layhong shares to sell at open market, due to the reason if the MGO fails, the price most likely will drop.
QL needs 50% plus 1 share in order for this deal to go through.
What can QL do if not by: Telling you to sell to them and if you don't and and the MGO fails, all minority sharesholders lose except for those selling at open markat @ 3.45.
As a minority, must look at their point of view. Under the 'MALAYSIAN CODE ON TAKE-OVERS AND MERGERS', an Offeror (QL) is not allowed to buy from open market with the PRICE HIGHER THAN THE OFFER PRICE (if they are buying higher from open market, QL has to revise the price - which QL not intended to). The max QL can sapu the shares from open market is 3.45. Price has been stagnant for quite awhile and QL know the seller is drying up.
If QL do not come out to tell you what will happen if MGO fails, some investors still will think they will get 3.50 apiece (already surrendered).
To sell or not, your call. QL has done their part to inform you:

Disclaimer and Declaration
The full content of the article is for educational purposes only and should not be used as investment recommendations. We are not responsible for all investment activities conducted by the participants and cannot be held liable for any investment loss. Examples of specific shares may be citied for
illustration purposes.
Humble Pie, 

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