RIN - Rinker Group

[the barry]

Trading halt this morning. Some action at last on the take over.

Ferret

Heres hoping mate. Have been sitting on this one a long time. Fingers crossed its either an increased offer from cemex or a private equity group stepping in.

 

[noirua]

Trading halt this morning. Some action at last on the take over.

Ferret

Hopefully it's a counterbid by the consortium that was mentioned a while back in the States.
If it was an increased bid by Cemex and the bid remained hostile, then Cemex would just have made an announcement.

 

[Ferret]

Bidding war would be nice!

Ferret

 

[the barry]

Bidding war would be nice!

Ferret

Increase in bid to 19.41, board of rinker saying to accept the offer. Can't see a bidding war happening unfortunatly. Still, happy days.

 

[noirua]

Offer, as confirmed by Rinker Group: First 2,000 shares to be paid A$19.50 guaranteed if requested in Australian Dollars.

http://www.rinker.com/downloads/news/Cemex announcement FINAL2.pdf

 

[Sultan of Swing]

Ok, excuse my ignorance....

If Cemex have offered $19-50 a share, why are they trading at $18-90ish?

Is that because the offer of $19-50 is only for the first 2000 shares?

The next question is, how long before they pay us the $19-50?

Is there any posibility of the sp going over $19-50?

If it takes a while to get payment from Cemex, it may be better to jsut sell them at market now so that I'm cashed up. I'd hate to miss out on an opportunity elsewhere for the sake of a few undred dollars.

(I have 1000 shares left, I sold 1000 a few months ago for $18-12.)

 

[the barry]

Ok, excuse my ignorance....

If Cemex have offered $19-50 a share, why are they trading at $18-90ish?

Is that because the offer of $19-50 is only for the first 2000 shares?

The next question is, how long before they pay us the $19-50?

Is there any posibility of the sp going over $19-50?

If it takes a while to get payment from Cemex, it may be better to jsut sell them at market now so that I'm cashed up. I'd hate to miss out on an opportunity elsewhere for the sake of a few undred dollars.

(I have 1000 shares left, I sold 1000 a few months ago for $18-12.)

I think rinker is trading at a discount due to the strentgh of the australian dollar and the offer being in american dollars. The first 2000 are gaureented at 19.50, but the remainder of your shares would be subjected to the raising australian dollar.

 

[Sultan of Swing]

I think rinker is trading at a discount due to the strentgh of the australian dollar and the offer being in american dollars. The first 2000 are gaureented at 19.50, but the remainder of your shares would be subjected to the raising australian dollar.

And that's diluting the value of aussie RIN shares, right?

 

[the barry]

And that's diluting the value of aussie RIN shares, right?

Yep, that is correct. Every 1 cent the aussie dollar moves up knocks approximatly 1.25 percent off the bid.

 

[Ferret]

It is a chance for small investors to get 2000 shares around $18.90 and take $1200 profit (less about $40 brokerage) on the takeover. You could do that with borrowed money and still make something unless the Cemex payment is way down the track.

I need to see the revised scheme to see when payment would be made, but at 7.4% interest rate, you'd be in front if payment was made in a little less than 5 months.

Ferret

 

[shangyien]

Does anyone know what the capital gains tax implications are if you take the payment in US dollars and keep it offshore? I am a non-resident Australian citizen and figure there may be some advantage waiting till the Aussie dollar drops before repatriating the funds.

 

[Ferret]

Does anyone know what the capital gains tax implications are if you take the payment in US dollars and keep it offshore? I am a non-resident Australian citizen and figure there may be some advantage waiting till the Aussie dollar drops before repatriating the funds.

If you bought as a non resident you don't have to pay any CGT. If you bought as a resident and sell as a non resident, you do.

Doesn't make any difference whether the payment is in US dollars and kept offshore or in Aussie dollars and paid in Australia.

Ferret

 

[drmb]

It is a chance for small investors to get 2000 shares around $18.90 and take $1200 profit (less about $40 brokerage) on the takeover. You could do that with borrowed money and still make something unless the Cemex payment is way down the track. I need to see the revised scheme to see when payment would be made, but at 7.4% interest rate, you'd be in front if payment was made in a little less than 5 months.

Ferret

NOT SO FAST!!!! I don't think it is that easy, the offer is only for shareholders who held prior to the announcement. Please do own research before you buy!! See attached pdf please

 

[noirua]

Maybe, the large discount in the Rinker share price is to allow for the delay in Cemex moving to a 90% holding as there will not be a payout until that point is reached.
Some may wish to wait and see if a counterbid is in the offing.

 

[noirua]

Rinker shares closed in the USA at ADR $78.55, up $3.25. This is against a bid price of ADR $79.25.

There are no rumours of a counterbid despite the fact that Cemex have only offered the Lowest Base $15.85 valuation put forward by Rinker Group.
For the optomistic the Cemex bid does leave the very slight possibility of a counterbid nearer $17.00.

All prices in US Dollars.

 

[the barry]

Rinker shares closed in the USA at ADR $78.55, up $3.25. This is against a bid price of ADR $79.25.

There are no rumours of a counterbid despite the fact that Cemex have only offered the Lowest Base $15.85 valuation put forward by Rinker Group.
For the optomistic the Cemex bid does leave the very slight possibility of a counterbid nearer $17.00.

All prices in US Dollars.

Would be very hard to see a counter bid. The board of rinker have stated that they have explored all other possible options and have come up with nothing. They all now back the cemex offer in the "absence of a superior offer."

 

[shangyien]

If you bought as a non resident you don't have to pay any CGT. If you bought as a resident and sell as a non resident, you do.

Doesn't make any difference whether the payment is in US dollars and kept offshore or in Aussie dollars and paid in Australia.

Ferret

Thanks. That's a gift! Are non-residents still entitled to franking credits on dividends?

In my case most of the shares were bought as a non-resident.

 

[noirua]

"Cemex gets a bargain"; or is it "El Cheapo"; http://www.smh.com.au/news/business/cemex-gets-a-bargain/2007/04/10/1175971101183.html

 

[noirua]

Thanks. That's a gift! Are non-residents still entitled to franking credits on dividends?

In my case most of the shares were bought as a non-resident.

Here are some tax links: http://www.exfin.com/tax-advice-cgt.php http://www.exfin.com/tax-advice-rates.php http://www.exfin.com/overseas-refunds.php

 

[noirua]

Television Video Link to Cemex's bid for Rinker Group: http://www.abc.net.au/lateline/business/items/200704/s1893900.htm