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Hi,
Could the follwoing be the reason that its price has been declining steadily?
LMIR
A BOT Scheme is not registrable with any Indonesian authority. Rights under a BOT Scheme do not amount to a legal title and represent only contractual interests.
LMIR Trust holds some of the Existing Properties (as defined herein) which it cquired at the time of its initial public offering via BOT Schemes. These Existing Properties are
(i) Cibubur Junction,
(ii) The Plaza Semanggi,
(iii) Ekalokasari Plaza,
(iv) Bandung Indah Plaza and
(v) Istana Plaza.
The most recent acquisitions thru its rights issue have very short BOT period:
Pluit Village :
* BOT tenure expiring in 2025
Plaza Medan Fair :
* Operational since 2004 with Build Operate and Transfer (“BOT”) tenure expiring in 2027/28
Is it good?
ReplyHi Martin,
Sorry, but I’m not sure how does your equation work out:
“Revenue from selling mother share at $0.365 and then using the money to subscribe for the rights = $365 – $310 = $55”
If you sell your shares and subscribe to Rights, wouldn’t you need to buy the Rights first ($0.02 in your case)? This would add to the cost too doesn’t it?
ReplyDear Blueflame,
That example is for existing shareholders who own both the mother shares and the rights.
It’s meant to illustrate that it makes more sense to sell their mother shares than their rights.
On the other hand, if someone didn’t own either of the two and wanted to gain exposure, it makes more sense for them to buy the R instead of the mother share. So those who bought the mother share were also inefficient.
ReplyHey Martin, I would like to ask if one can just buy the rights directly without being a original shareholder of the mother shares?
ReplyHi Noob,
You can just buy the counter Lippo Mall R. Today is the last day of trading for it.
ReplyHi,
Your maths maybe right. If so i am even more puzzle now. All the rights i bought are from DBS VICKERS, KIM ENG, PHILIPS. None from retailers. Or are rights sold by retailers only show the Brokerages they use?