A friend highlighted Zagro Asia to me -- steady dividend of 1 cent every year for many years already. It is trading CO, a curious offer whereby you can buy 320 shares at 15 cents each for every 1000 Zagro shares you hold.
If you buy Zagro now at 27 cents, in essence your average price is lowered to $0.2409/share if you take up the 320-for-1000 offer. On checking the chart, I hesitated to buy now because the stock price actually was trading at around 24 cents prior to the announcement of that special offer. In other words, the market is pretty efficient, in upgrading the price!
Ex-Offer is coming up on 6 Aug -- following which the stock will adjust downward to 24 cents, I am pretty sure.
True to form, after closing at 28 cents on Friday, Zagro shares have gone ex-d at 24.5 cents.
Efficient adjustment. The stock is now clean in the sense if you buy in, don't have to be concerned about odd lots, etc.
Probably it will go to sleep -- liquidity will dwindle for months and months as this is a dividend yield stock. It's not a heavy trading stock.
My heart went pumping when I saw the title 'mandatory cash offer ...' in the SGX announcement.
Aiyah, in the end, it's just nothing but a requisite offer by Mr Poh as a result of the Skopini Offering... Peanut offer of 15 cents, which nobody will take up !
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