Out of 1,411,944,806 Rights Shares, 1,383,315,554 (or 98%) were acccepted. The remaining 28,629,252 Rights Shares will be allocated to satisfy the excess rights, out which there were 340,682,668 applied for.

Successful subscribers with CDP accounts will receive by ordinary post, on or around 23rd March 2009, on the number of Rights Shares that have been credited to their CDP account.

Unsuccessful applications will be refunded their money latest by 26th March via check or direct credit to their bank accounts (for those who applied through atm).

The Rights Shares will be issued on 20th March 2009 and will start traded on or about 23rd March 2009.

A temporary counter will be setup for a month to facilitate trading of odd lots (500 shares). Trading in this counter will have a concessionary brokerage rate of $20 per contract.

Capitaland Rights Issue Results (SGX Announcement)

To leave your comments, please go to : Capitaland Rights Issue Results

CapitaLand to pay staff bonuses with shopping vouchers

According to the news, Capitaland will be paying part of the bonuses for managers using their Capitaland mall vouchers. The size of the vouchers range from $750 to $10,000 and the total amount adds up to about a million dollars.

I am just wondering how long it will take those people receiving the $10,000 vouchers to utilize all their vouchers.

Nevertheless, this innovative approach will be beneficial for Capitaland and their retailers. The poor staff who had other plans for the money (other than shopping at Capitaland malls) would probably be very unhappy about this arrangement.

To leave your comments, please go to : Capitaland Vouchers

Capitaland Rights Offer Document

To leave your comments, please go to : Capitaland Rights Offer Document

Shareholders will be able to subscribe for 1 rights share for every 2 Capitaland shares that they own. The rights are renounceable (which means shareholders can sell them if they do not want to subscribe).

Key dates are as follows:

Shares trade ex-rights: 19th Feb 2009 from 9am

Despatch of offer document: 26th Feb 2009

Commencement of trading of Rights : 26th Feb 2009 at 9am

Last day of trading of rights: 6th March 2009 at 5pm

Last day and time for acceptance and payment for Rights Shares : 12th March 2009 at 5pm (930pm for electronic)

Last date and time for application and payment for excess Rights Shares : 12th March 2009 at 5pm (930pm for electronic)

Expected date of trading of Rights Shares : 23rd March 2009

If you are a Capitaland shareholder, it is imperative that you either sell off your rights (if you do not wish to subscribe) or subscribe to the rights. If you do neither, you would have lost the opportunity to recoup some money from the selling of your rights. 

Another option is to sell off your Capitaland shares before they go ex-rights.

Small shareholders who own odd lots of Capitaland would also be in a pole position to apply for excess rights shares, and make a small token (assuming no major collapse in the price). This profit comes at the expense of those Capitaland shareholders who neither sold off their rights nor subscribed.

Example:

Purchased 1000 shares of Capitaland at $2.50 (total cost $2500)

Option 1 (Subscribe for own rights)

Subscribe for 500 rights share at $1.30 each (total $650)

Average cost of 1500 shares = $2.10

Option 2 (Subscribe for own rights and excess rights)

Subscribe for 500 rights share at $1.30 each (total $650)

Subscribe for 500 excess rights share at $1.30 each (total $650)

Average cost of 2000 shares is $1.90

Option 3 (sell off rights)

Sell off 500 rights at $0.80 each ($400)

Average cost of 1000 shares is $2.10

Option 4 (Do nothing)

Average cost of 1000 shares is $2.50 (no change)

Note that while reducing the average cost of holdings might seem like a gain, it is not. The NTA/share of Capitaland would have fallen from $3.57/share to $2.80/share after the rights issue. So, each share is actually worth less. Doing nothing (option 4) would thus be extremely detrimental.

To leave your comments, please go to : Capitaland Rights Issue

The High Notes 10 FAQ highlights the risk of this product. The capital of investors will be severely affected should something (along the likes of bankruptcy) happens to one of these two companies:

• DBS
• CapitaLand

The buyback price of High Notes 10 can be found on the DBS website. This mark-to-market price is quoted on a daily basis and is affected by a few factors, including:

• interest rates
• exchange rates
• credit spreads of CapitaLand

Redemption of High Notes 10 is available on a daily basis until further notice.

Click here to leave a comment.

To leave your comments, please go to : DBS High Notes 10