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QuestionsCategory: MiscellaneousWhy we will be rejecting ARA Asset Management's privatization offer of $1.78 per share
Steven Yap asked 5 years ago

Hi Rasmin
I agree with you that ARA privatization offer is too low as I am vested closed to that price and would be making losses after commission. 
However we can’t change the past. My question to you is: since  the current price of ARA is $1.71 while the offer price is $1.78, so in theory, I can arbitrage and make some only on it, right? 
Appreciate your thought on this matter
 

1 Answers
Rusmin Ang answered 5 years ago

Hi Steven,
 
I wouldn’t arbitrage ARA Asset Mgt just for the 7 cents. There is always a risk the offer may not go through. In such situation, we may see ARA share price falls below its pre-offer level (i.e. $1.50). However, if you see at current price of $1.71 is good value for ARA then you may consider doing so. At current price, I certainly wouldn’t add or sell personally. 

Steven Yap replied 5 years ago

Hi Rusmin

I read in ST 2 days ago that the court has directed the meeting will be held on 23
March 2017 at 11.00 a.m. According to the report, the voting will be done by poll which means that those (likely the sponsors for the scheme) with proxies will likely to determine the results.

May I know if it is still worthwhile to go for the meeting?

Rusmin Ang replied 5 years ago

Hi Steven, they need to get both Head Count (>50%) and Share Count (75%) pass. The substantial shareholders like John Lim, CK and ST can’t vote. So yes, it is still worth going and vote!