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?
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.