We should salute Indofood -- for quickly turning out to be a salvation for minority shareholders of Minzhong and preventing further short-selling. For its own self, Indofood has bought a partner which will reap it good returns in the future.
"Indofood’s decision to increase its shareholdings and making a general offer for CMFC is a well-considered investment decision.
"Since the strategic alliance formed between Indofood and China Minzhong in February 2013 that laid the foundations for strategic business collaboration between the 2 companies, Indofood has been contemplating the forging of a closer relationship between the 2 companies.
Preparation for the Offer commenced long before the allegations were made. Despite the recent artificial depression of CMFC’s share price, Indofood believes in according all CMFC shareholders with equal treatment by offering the same price that Indofood had paid in its previous acquisition of CMFC’s shares."
This morning still have some jokers selling at 1.115 when the offer has been declared unconditional and one can sell it to the Indonesian at 1.12 without brokerage cost. Are these force selling?
The seller can be foreigner and do the trading outside singapore. so the proceed will be converted to his country's currency. Probably the currency exchange rate is favouable to him now.
SWN wrote: This morning still have some jokers selling at 1.115 when the offer has been declared unconditional and one can sell it to the Indonesian at 1.12 without brokerage cost. Are these force selling?
SWN, in my view, the pricing of 1.115 is not correct. It should be lower!
Typically, the bid price is lower in order to compensate any buyer for the time to the payment of cash by the offeror. I was expecting $1.10 or even $1.09.
The jokers are the ones who bid for $1.13 after resumption of trading.
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