Cosmo Top Limited has reduced its stake in Perennial China Retail Trust from 11.75% to 9.17% in open market by divesting 29,593 lots at S$0.5592 per Unit on 17 March 2014.
Yes, the sale of nearly 30m shares explains why PCRT was hammered down that day after opening high. This shows how eager the older shareholders of PCRT are looking to exit, and is not a positive sign.
If the RTO still takes place, St James risk falling further as the theoretical fair price post the exchange of shares (such that there is no difference between those who now own PCRT shares and those who hold St James shares, assuming the deal does not boost the intrinsic value of PCRT's assets)is only slightly above 2ct.
So I think St James would have to move closer to this intrinsic value (based on PCRT's value) rather than PCRT moving up towards its intrinsic value (based on St James' value).
Steering clear of both stocks, as there are much better prop counters around.
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