KOON HOLDINGS

YONGNAM DO WATCH OUT FOR.. yongnamholding.blogspot.sg/

repeat post deleted.

Proposed rights issue to raise $ for Koon to acquire 4 property-related companies in Malaysia. It's an IPT involving the Ang family. Ang family will subscribe to their entitlement of rights shares & any excess.

Basically, the Ang family are disposing of the 4 Malaysian companies entirely except for 29% which they will pay for via the rights shares (assumes no excess shares that they can take up).

It is not clear whether the acquisition is going to be profitable for Koon (and its minorities). Anyone can share a view on this?

This is problematic.

Koon stock trading at 19.1 cents.
Koon rights shares have an exercise price of 19 cents.

Like that.... the rights shares will die (ahem! I mean expire worthless).

Which rights owner will want to exercise the rights when he doesnt get any meaningful discount to market price of 19.1 cents?

If you want to sell the rights, you can't really do so -- what's yr asking price? 0.001 cent?
Who cares to buy from you?

Apologies, Koon stock trading at 19.5 cents (not 19.1 cents). Rest of my post still holds.... Any contrarian view is welcome~!

Koon share price stuck at 19 cents, means shareholders no incentive to exercise the rights since 19 cents is the exercise price. No need to contribute money tothe company! Just let the rights expire. They have no market anyway.

The Ang family is obliged to subscribe for all the excess rights. Good luck to them, they are just paying for their own Malaysian properties.