Recall in an earlier posting that highlighted the risk
arbitrage deal offered by Reach Energy listed company shares. Fast forward to
15 November 2016, it had successfully obtained sufficient shareholder approvals
to acquire an oil and gas outfit.
The option to vote officially expires on 28th
October 2016 where if you are a shareholder up till the end of business day,
you have the right to attend the EGM and cast your vote on the acquisition.
Shareholders who voted against the acquisition would have gotten back
approximately RM0.76 per share as per the following Bursa stock exchange
announcement made by the company via a share purchase mechanism:
Shareholders focusing solely on extracting the risk
arbitrage spread offered by Reach would have earned a decent premium. However,
the share repurchase price paid by the company is subject to the qualifying
acquisition going through. Christmas indeed came early should you have bought
into Reach below RM0.70 per share price levels.
This post will end the story for Reach risk arbitrage
chapter.
Note: This is not an investment advice. Buy and sell any
securities at your own risk.
Disclosure: None.
No comments:
Post a Comment