Thursday 13 July 2017

Red Sena : Safe Haven in times of turmoil?



Red Sena, an F&B SPAC listed on Bursa Malaysia (Stock Code: 5270) is currently sitting on 371m cash trust proceeds. Similar to the Reach Energy, shareholders who vote against the acquisition of a business concern identified by management are entitled to their share of cash trust proceeds.

Cash trust currently owing to public shareholders amounts to RM0.464 per share, a tiny 2% discount against the current ask price of RM0.455.

Shareholders can only expect FD like returns ranging from 3-4% per annum net that comes with potential for solid acquisition targets. Downside for shareholders is protected with the right to reject any deal that is deemed expensive or businesses that has murky future outlook.

Investors may diversify into this unique situation-based stock. With stocks riding high every day and solid undervalued gems ever harder to be found, investors may park their cash in this stock in the event of a widening discount against cash trust per share.

Note: This is not an investment advice. Buy and sell any securities at your own risk.

Disclosure: None.

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