MAL. Funny Right Issue

kam2011 · 1 MAL. Funny Right Issue Tue Aug 09, 2011 1:25 pm

kam2011

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Mal Voting shareholders will have to pay Rs.1.25 more than Nonvoting shareholders for both Rights Voting and Non voting. According to the following announcement Rights proportions and issue price could be summarized as follows;

Voting Shareholders -2 Voting shares and 2 Non voting shares for every 10 shares held and issue price is Rs.6.75 for both(Voting and Non voting Rights)
Non voting Shareholders-2 Voting shares and 2 Non voting shares for every 10 shares held and issue price is Rs.5.50 for bpth(voting and Non voting Rights)

Non voting Shareholder will have to pay only 5.50 for both voting and Non voting rights while Voting Shareholders have to pay 6.75 for both. Is it fair and reasonable?

09-Aug-2011 RIGHTS ISSUES DATES AMENDED (Voting & Non - Voting) - MAL

MALWATTE VALLEY PLANTATION PLC
Company ID: - MAL (Voting)
Date of Announcement: - 14-Jun-2011
Proportion: - Two (02) voting shares for every ten (10) voting shares held
Two (02) Non-voting shares for every ten (10) voting shares held
Issue Price: - Rs.6.75/-
Qty Offered: - 49,518,032
General Meeting & Provisional Allotment: - 29-Aug-2011
XR: - 30-Aug-2011
Dispatch of Provisional Letter of Allotment: - 06-Sep-2011
Rights Trading Commences on:-12-Sep-2011
Renunciation: - 19-Sep-2011
Last Date of Acceptance & Payment: - 20-Sep-2011

MALWATTE VALLEY PLANTATION PLC
Company ID: - MAL (Non-Voting)
Date of Announcement: - 14-Jun-2011
Proportion: - Two (02) Non-voting shares for every ten (10) Non-voting shares held
Two (02) voting shares for every ten (10) Non-voting shares held
Issue Price: - Rs.5.50/-
Qty Offered: - 49,518,032
General Meeting & Provisional Allotment: - 29-Aug-2011
XR: - 30-Aug-2011
Dispatch of Provisional Letter of Allotment: - 06-Sep-2011
Rights Trading Commences on: - 12-Sep-2011
Renunciation: - 19-Sep-2011
Last Date of Acceptance & Payment: - 20-Sep-2011

hunter · 2 Re: MAL. Funny Right Issue Tue Aug 09, 2011 5:02 pm

hunter

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I think thy will correct it. Issue price should be equal for both parties I believe. Anyway, we can try buying from the market cheaper. That's the funny part in my view.

MJ · 3 Re: MAL. Funny Right Issue Tue Aug 09, 2011 6:34 pm

MJ

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It s funny as well an opertunity for us.

I m going by bellow logic : Lets take the scenario of buying now.( Around 6.50 )
Right is going over the share Px. So if the share Px goes up , you outomaticaly gain.
If it remains at the current Px, You have the option of not buying the Rights ( But left with an option of selling Rights at atleast 10cents )
I m not going to talk about a further price down , as donot see a reason for the current price to go down

Fresher · 4 Re: MAL. Funny Right Issue Tue Aug 09, 2011 6:57 pm

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u got it wrong buddy.

this means that the voting share is issues at 6.75 and non voting is issued at 5.50 for both share holders. this is the same announcement as earlier.
only date is the difference

Rajaraam · 5 Re: MAL. Funny Right Issue Tue Aug 09, 2011 8:48 pm

Rajaraam

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npp wrote:u got it wrong buddy.

this means that the voting share is issues at 6.75 and non voting is issued at 5.50 for both share holders. this is the same announcement as earlier.
only date is the difference

May be you are correct brother,but announcement must be very clear ne.

Fresher · 6 Re: MAL. Funny Right Issue Tue Aug 09, 2011 8:52 pm

Fresher

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Rajaraam wrote:

npp wrote:u got it wrong buddy.

this means that the voting share is issues at 6.75 and non voting is issued at 5.50 for both share holders. this is the same announcement as earlier.
only date is the difference

May be you are correct brother,but announcement must be very clear ne.

see company ID and then within brackets. that's the stock that will be issued and the relevant price is given below

anyway i guess no one (including me) is used to an issue like this where both type of holders get both type of stocks.
if people had bought non voting cos they dont want to pay the premium for the voting right, then why issue them voting shares?