AOG - AVEO Group

[samuely1]

Re: FKP - FKP Property Group

Sorry. . . I should have read further

FKP Property Group (FKP) seeks a trading halt in its stapled securities under Listing Rule 17.1
from the commencement of trading on Wednesday 24 June 2009 until the commencement of
trading on Friday, 26 June 2009.
The trading halt is requested pending an announcement by FKP in relation to a potential capital
raising.
FKP is not aware of any reason why the trading halt should not be granted by ASX or any other
information necessary to inform the market about the trading halt.

 

[Taltan]

Re: FKP - FKP Property Group

I can't believe Macquarie are involved in this capital raising. Didn't they recommend FKP reject the Lend Lease offer of $5 per share last year???

What are we now 76c.

 

[samuely1]

Re: FKP - FKP Property Group

Just wondering if someone can explain the FKP Entitlement offer for me. . . . I was holding at .6 before the offer came out last week and the last close was at .76. They opened today around .5.

"Eligible retail security holders are able to subscribe for 2.3 New Securities for every 1 FKP
security held on the record date at the Offer Price of $0.40 per security, which is the same as
the Offer Price for the Institutional Entitlement Offer."

Does that mean that the shares I own can be exchanged for 2.3 of the current shares at .5 cents? If so how do I go about exchanging them?
Any advice would be appreciated. Go easy , I'm new to this.

 

[skc]

Re: FKP - FKP Property Group

Just wondering if someone can explain the FKP Entitlement offer for me. . . . I was holding at .6 before the offer came out last week and the last close was at .76. They opened today around .5.

"Eligible retail security holders are able to subscribe for 2.3 New Securities for every 1 FKP
security held on the record date at the Offer Price of $0.40 per security, which is the same as
the Offer Price for the Institutional Entitlement Offer."

Does that mean that the shares I own can be exchanged for 2.3 of the current shares at .5 cents? If so how do I go about exchanging them?
Any advice would be appreciated. Go easy , I'm new to this.

You retain your existing shares (say you have 10,000).
You now have the right to buy 23,000 additional shares at $0.40.
You will have to pay for it - i.e. using new money.
If you are registered under CHESS you should receive the offer forms in the mail etc. If not, contact your broker on how to take up the offer.
You don't have to take up the offer, you may choose to stand aside.

Note the dates associated with the offer - when are the new shares issued and when can you start to tarde them.

You may also be able to sell your existing holding now, but still retain the right. Again, check the dates and with your borker to make sure your rights are secured.

On paper, the opportunity to buy new shares gives you the potential profit of $0.55 - $0.4 per share, but prices may move before you get a chance to sell them.

 

[samuely1]

Re: FKP - FKP Property Group

What if I choose not to take up the offer, and just sell my current shares? Do they copensate for that? Can I sell the rights or something like that?

 

[skc]

Re: FKP - FKP Property Group

What if I choose not to take up the offer, and just sell my current shares? Do they copensate for that? Can I sell the rights or something like that?

There are 2 kinds of rights. There are those that can be sold and those cannot be transferred. RIO's right was an example of the first kind.

I don't know about FKP.

If they are non-renounceable (i.e. not transferable and cannot be sold), then you will forfeit that right. There will be no compensation.

 

[oldblue]

Re: FKP - FKP Property Group

It is a renounceable entitlement offer. This implies that the rights will be traded and as the ratio is 2.3 for 1, there may be quite a few on offer.

I suggest you have a look at the relevant announcements which are on the ASX announcements website, and probably also on the company's website.

Based on the last cum rights price of 54.5c, the rights have a theoretical value of 4.8c.

 

[samuely1]

Re: FKP - FKP Property Group

So taking up the offer is the only way that I can recover losses during the price drop during the last week? Am I understanding that right?

 

[skyQuake]

Re: FKP - FKP Property Group

Yup, though technically its not a loss. After you work out all the maths, uts up around 6% today, if you take up the rights.

 

[Tysonboss1]

Re: FKP - FKP Property Group

It is a renounceable entitlement offer. This implies that the rights will be traded and as the ratio is 2.3 for 1, there may be quite a few on offer.

It is a renouceable offer,

Any shares not taken up by you at 40c per share will be sold under a book build process to institutions.

For example,... FKP want to raise funds by selling you 2.3 extra shares for 40c, so if you hold 1000 shares already they will be offering you 2300 new shares for 40c each.

If you decide not to take up the shares they will be sold to someone else using the book build method ( wiki it ), the book build will have a floor price of 40c, however anything above this floor price will be passed on to you,

So if they end up selling the shares through the book build for 46c, FKP will keep 40c and pass 6c onto you, as sort of a little bit of compensation for the massive dilution in value you will be receiving.

 

[Tysonboss1]

Re: FKP - FKP Property Group

So taking up the offer is the only way that I can recover losses during the price drop during the last week? Am I understanding that right?

Yes, this deal will Massively dilute your existing holding if you don't take part.

It's kind of a double edged sword, this deal will secure FKP and provide a healthy buffer against any debt troubles, while also providing funds for future growth, How ever existing share holders that dont take part are going to take a massive hit, though not as big of a hit as they would if FKP failed like ABC.

So by taking part you are pretty much going to be holding position, but by not taking part it's a guranteed loss.

 

[oldblue]

Re: FKP - FKP Property Group

It is a renounceable entitlement offer. This implies that the rights will be traded and as the ratio is 2.3 for 1, there may be quite a few on offer.

I suggest you have a look at the relevant announcements which are on the ASX announcements website, and probably also on the company's website.

Based on the last cum rights price of 54.5c, the rights have a theoretical value of 4.8c.

Got that wrong!

The shares were never actually cum rights although the last traded price before the announcement was around 76c. This gives a theoretical rights value of around 11c.
The shares are doing a bit better than this today, trading ex rights at around 55c. The rights should follow.

 

[oldblue]

Re: FKP - FKP Property Group

I note that the Retail Entitlement Offer booklet states:

"Entitlements will not be able to be traded on the ASX or privately transferred."

So there won't be a rights market as such and shareholders who don't take up their entitlements will have to wait for the results of the eventual bookbuild to see what their "rights" fetch.

 

[skc]

Re: FKP - FKP Property Group

I note that the Retail Entitlement Offer booklet states:

"Entitlements will not be able to be traded on the ASX or privately transferred."

So there won't be a rights market as such and shareholders who don't take up their entitlements will have to wait for the results of the eventual bookbuild to see what their "rights" fetch.

How the hell they calling this renounceable offer but the rights are not transferrable? Does renounceable mean something else? This is quite confusing

 

[oldblue]

Re: FKP - FKP Property Group

How the hell they calling this renounceable offer but the rights are not transferrable? Does renounceable mean something else? This is quite confusing

Yes, it's a pretty loose use of the word "renounceable".

I guess it means "If you don't take them up we will do our best to get some value for them, for you."
It seems a bit extreme to prohibit transfer by private arrangement, even if they don't want an active rights market. No doubt they're within their "rights" in acting this way but it seems a bit high handed.

 

[Taltan]

Re: FKP - FKP Property Group

Regarding the retail offer I get that sherholders are buying 2.3 units for every unit they hold at 40c. If anyone knows can they explain the difference between taking up the offer at the early retail close date of 9th July and the final close date of 17th July.

 

[oldblue]

Re: FKP - FKP Property Group

Regarding the retail offer I get that sherholders are buying 2.3 units for every unit they hold at 40c. If anyone knows can they explain the difference between taking up the offer at the early retail close date of 9th July and the final close date of 17th July.

It appears that units applied for before the early retail close date will be allocated on 14 July and will be able to be traded from 15 July.
This may or may not be considered sufficient advantage to justify early application.

 

[Taltan]

Re: FKP - FKP Property Group

Thanks just wasnt sure why you would bother going on the 9th. With the shares at 0.46 I'd hate to jump in early have wall st slump and end up with FKP trading at say 0.38 on the 17th and no-one taking up the offer. I think I will wait till the 17th. Even then I'm nervous about a company that only seems to be raising enough to meet its very short-term debts.

 

[lioness]

Re: FKP - FKP Property Group

Does anyone consider this a buy when its NTA is 1.22 after dilution??

Seems like a buy to me??

Chart is ina nice weekly uptrend.

 

[roland]

Re: FKP - FKP Property Group

Well, long time coming, but back to that nasty resistance level.

Just like ABP and CQO it seems that interest in the REIT's is starting to pick up.