What happens if you hold warrants during a merger?

[ozambersand]

I currently hold some Zinifex Instalment warrants and was wondering how these will be affected by the proposed merger with Oxiana if it goes ahead.

I realise I can trade them on the ASX at any time as long as I am prepared to pay market price. I bought them when the price was $14 so I am hoping that ZFX would rise past that so I can sell them.

They don't need exercising until November 2008, so there is a good chance that a merger, if it takes place, will happen before then.

So what happens to those warrants at merger time?

 

[RichKid]

I currently hold some Zinifex Instalment warrants and was wondering how these will be affected by the proposed merger with Oxiana if it goes ahead.

I realise I can trade them on the ASX at any time as long as I am prepared to pay market price. I bought them when the price was $14 so I am hoping that ZFX would rise past that so I can sell them.

They don't need exercising until November 2008, so there is a good chance that a merger, if it takes place, will happen before then.

So what happens to those warrants at merger time?

Hi Oz

I'm not sure myself but you could try reading the terms of the PDS- available via your warrants issuer or via www.asx.com.au

You could try calling the issuer or emailing via their website.

Sorry I couldn't be more helpful, I hope the merger is beneficial to you and that the mm doesn't do you over.

 

[bvbfan]

I'd hazard a guess that you'll get OXR warrants at 3.1931 for each ZFX share which convert at $14/3.1931 ($4.384)

But check PDS or ring the warrant issuer.

IMO you've struck it lucky, I'm pissed as a OXR holder. My $6 upside with PH expansion and copper price strength has been passed onto ZFX.
Not to mention getting a sell out CEO.

My 100 bagger on OXR looks a long way of now

 

[ozambersand]

OK, I did check and the story is come merger (June sometime?), if I still hold my warrants they will be sold automatically to the issuer in line with whatever is the going rate of the underlying share price of Zinifex based on the current price matrix (which the issuer sets)!
That is assuming I don't want to exercise them and buy them outright at the time by paying the outstanding loan amount.
Which is a bummer as I deliberately got long dated warrants (November 2008) in case the price took a while to grow.
So I will look for an exit point before then if the merger gets a green light from the shareholders.
That's one of the risks of warrants I suppose.