 | « Reply #5 on: November 16, 2010, 07:49:53 PM » | 0  Quote |
I read the latest The Edge and The Star on UEMLand merge with Sunrise.
As a small long term investor, buying UEMLand share is better than Sunrise. They r controlling shareholder of the merger. If you plan to buy Sunrise with option 1, buy Sunrise and convert into 1.33 UEMLand shares at Rm2.80, the price to pay is high in terms of money and time because the initial deal is already undervalued. The price that UEMLand offer to pay to Sunrise is P/E 7.3x, way below than other property developers. Investors of UEMLand are benefited from acquiring a cheap company.
Unless you r die hard fan of Datuk Tong, an economist tycoon. Buying Sunrise with option 2, converting all your Sunrise shares for 2.8 times UEMLand Redeemable Convertible Preference Shares should sounds meaningful. Because Sunrise will own 28% of the Rm7.9 billion UEMLand shares at today market value which is 2.1 billion RM, compared to its current 1.3 billion Sunrise shares at Rm2.80, which is a 60% increase in value. However you are NOT able to sell your shares in the open market. Correct me if I am wrong.
As a small long term investor, buying UEMLand share is better than Sunrise. They r controlling shareholder of the merger. If you plan to buy Sunrise with option 1, buy Sunrise and convert into 1.33 UEMLand shares at Rm2.80, the price to pay is high in terms of money and time because the initial deal is already undervalued. The price that UEMLand offer to pay to Sunrise is P/E 7.3x, way below than other property developers. Investors of UEMLand are benefited from acquiring a cheap company.
Unless you r die hard fan of Datuk Tong, an economist tycoon. Buying Sunrise with option 2, converting all your Sunrise shares for 2.8 times UEMLand Redeemable Convertible Preference Shares should sounds meaningful. Because Sunrise will own 28% of the Rm7.9 billion UEMLand shares at today market value which is 2.1 billion RM, compared to its current 1.3 billion Sunrise shares at Rm2.80, which is a 60% increase in value. However you are NOT able to sell your shares in the open market. Correct me if I am wrong.
