On 18th Nov, Asia Dekor (AD) has reached an agreement to sell away all its assets for S$253.75 million.
Conditions:
1) 10% of the consideration or S$25.375 million must be kept in Escrow account until april 09 for the purpose warranties claim. The warranty claims are capped at S$60 million.
2) Shareholder approval ( resolution passed on 19th Jan 08 )
Proposed Distribution & Delisting:
AD has intended to distribute as much of the proceeds and as soon as practicable transaction in 1 tranches or several tranches to shareholders, by special div and capital distribution.
On 19th jan 08, AD has approved
1) a 18.8 singapore cents or approx S$178 million as special div to shareholders. The date will be announced at a later time.
2) The sale of assets to Asia Timber for S$253million
3) Cancellation of paid up capital from HK$0.15 per share to HK$0.00001, and amount of HK$142 million will be return to shareholder from time to time at such times the directors deem fit. ( thats abt 3 singapore cts )
Conclusion
1) A 18.8 cts special div will be distirbuted.
2) A HK$0.14999 capital reduction will be distributed.
3) The sale has been approved.
SO WHATS THE CATCH FOR ASIA DEKOR???!!!???
1) AD will be delisted in April 09. what will happen to the shares you have?
Remember that there is a S$253 million ( sales proceeds ) - S$178 million ( special div ) = S$75 million remaining. That works out to be about 5.5 singapore cts.
All remaining proceeds will be returned to shareholders, once CDP surrender yr share cert and cancel your existing shares.
Illustrations:
Every 10,000 shares you have now 1st Feb 08,
You are entitled to
1) S$0.188 x 10,000 = S$1880
2) HK$0.14999 x 10,000 = HK$1499.9 ( estimated depending on currency exchange at date of distirbution)
3) remaining cash est to be S$0.055 x 10,000 = S$550.
In total , u will get S$2729.98 ( estimated ) by April 09.
Current price of Asia Dekor is S$0.215,
every 10,000 shares will cost S$2150.
Estimate returns is $(2729.98 - 2150 ) / 2150 = 26.9% return in about 14 mths. ( annualise 23% )
As this is a relatively low risk investment, in view of current violitile market, i would advice investors to hold asia dekor, for the 23% return.
Conditions:
1) 10% of the consideration or S$25.375 million must be kept in Escrow account until april 09 for the purpose warranties claim. The warranty claims are capped at S$60 million.
2) Shareholder approval ( resolution passed on 19th Jan 08 )
Proposed Distribution & Delisting:
AD has intended to distribute as much of the proceeds and as soon as practicable transaction in 1 tranches or several tranches to shareholders, by special div and capital distribution.
On 19th jan 08, AD has approved
1) a 18.8 singapore cents or approx S$178 million as special div to shareholders. The date will be announced at a later time.
2) The sale of assets to Asia Timber for S$253million
3) Cancellation of paid up capital from HK$0.15 per share to HK$0.00001, and amount of HK$142 million will be return to shareholder from time to time at such times the directors deem fit. ( thats abt 3 singapore cts )
Conclusion
1) A 18.8 cts special div will be distirbuted.
2) A HK$0.14999 capital reduction will be distributed.
3) The sale has been approved.
SO WHATS THE CATCH FOR ASIA DEKOR???!!!???
1) AD will be delisted in April 09. what will happen to the shares you have?
Remember that there is a S$253 million ( sales proceeds ) - S$178 million ( special div ) = S$75 million remaining. That works out to be about 5.5 singapore cts.
All remaining proceeds will be returned to shareholders, once CDP surrender yr share cert and cancel your existing shares.
Illustrations:
Every 10,000 shares you have now 1st Feb 08,
You are entitled to
1) S$0.188 x 10,000 = S$1880
2) HK$0.14999 x 10,000 = HK$1499.9 ( estimated depending on currency exchange at date of distirbution)
3) remaining cash est to be S$0.055 x 10,000 = S$550.
In total , u will get S$2729.98 ( estimated ) by April 09.
Current price of Asia Dekor is S$0.215,
every 10,000 shares will cost S$2150.
Estimate returns is $(2729.98 - 2150 ) / 2150 = 26.9% return in about 14 mths. ( annualise 23% )
As this is a relatively low risk investment, in view of current violitile market, i would advice investors to hold asia dekor, for the 23% return.
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