Thursday, 14 June 2018

Kretam Holdings Bhd: Potential MGO arbitrage gains? (2)


Yours truly had previously profiled Kretam Holdings Bhd which may be an attractive MGO arbitrage gains play.

The worst possible outcome has occurred for risk arbitrageurs in Kretam Holdings Bhd where due diligence results were not acceptable to the buying party, Hap Seng Plantations and share sale agreement was terminated with immediate effect.

Prices of Kretam Holdings may fall back to pre-share sale agreement levels or even lower due to perceived weakness from adverse due diligence results. This ends any remaining chance of potential risk arbitrage gains.

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

Disclosure: None.

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