11-Jun-2012 Rights Issue Of Shares - CIT, CFI

sriranga · 1 11-Jun-2012 Rights Issue Of Shares - CIT, CFI Mon Jun 11, 2012 6:55 pm

sriranga

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http://www.cse.lk/cmt/upload_cse_announcements/631339415114_.pdf

CIT - Two (02) New Share for every Eleven (11) existing issued shares at Rs80.00

CFI - Three (03) New Share for every Ten (10) existing issued shares at Rs80.00

Last edited by sriranga on Mon Jun 11, 2012 7:06 pm; edited 1 time in total

sriranga · 2 Re: 11-Jun-2012 Rights Issue Of Shares - CIT, CFI Mon Jun 11, 2012 6:58 pm

sriranga

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11-Jun-2012 Rights Issue Of Shares - CIT, CFI 110

11-Jun-2012 Rights Issue Of Shares - CIT, CFI 210

Monster · 3 Re: 11-Jun-2012 Rights Issue Of Shares - CIT, CFI Mon Jun 11, 2012 9:50 pm

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I was wondering why Lankem grouping was delaying the right issue for CIT and CFI. Both CIT and CFI are investment arms of Lankem group. Lankem group is more popular for right issues. These two illiquid companies mostly invested in their related companies.

As of Annual Report - CIT
* No of shares => 5,500,000
* Net asset value => Rs 23.51
* As of 31.03.2012, total market of value quoted investment => Rs 1,655,164,795/=
* As of 31.03.2012, market value of quoted investment per share => Rs 300.94
* As of 11.06.2012, market value of quoted investment per share => Rs 215.50
* Investment in related companies => 83.0%
* Public holding => 12.94%

As of Annual Report - CFI
* No of shares => 5,000,000
* Net asset value => Rs 34.41
* As of 31.03.2012, total market of value quoted investment => Rs 1,296,422,221/=
* As of 31.03.2012, market value of quoted investment per share => Rs 259.28
* As of 11.06.2012, market value of quoted investment per share => Rs 187.48
* Investment in related companies => 81.69%
* Public holding => 38.78%

Last edited by Monster on Wed Jun 13, 2012 12:34 pm; edited 1 time in total

dhanurrox · 4 Re: 11-Jun-2012 Rights Issue Of Shares - CIT, CFI Mon Jun 11, 2012 10:15 pm

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What'll happen to share price.??

Backstage · 5 Re: 11-Jun-2012 Rights Issue Of Shares - CIT, CFI Mon Jun 11, 2012 10:51 pm

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Antonym / Alchemist
Us lay folk need an interpretation here.

Antonym · 6 Re: 11-Jun-2012 Rights Issue Of Shares - CIT, CFI Tue Jun 12, 2012 7:30 am

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My gut instinct tells me that CIT & CFI will get merged at some point, and this rights issue is just the preliminary step. After the issue, both companies will have 6.5 million shares each.

Based on current market price, I have tried to calculate a possible post-issue price and rights price. Please let me know whether there are any logical flaws in my calculations.

Colombo Investment Trust PLC
Current Market Price: Rs 106.70
X Number of Shares (pre-issue): 5.5 million
= Market Value of Company (pre-issue): Rs 586.85 million

+ Cash Infusion through Rights Issue: Rs 80 million

= Market Value of Company (post-issue): Rs 666.85 million
/ Number of Shares (post-issue): 6.5 million
= Assumed Market Price (post-issue): Rs 102.59
(-) Rights Issue Price: Rs 80
= Value of Rights: Rs 22.59

Colombo Fort Investments PLC
Current Market Price: Rs 118
X Number of Shares (pre-issue): 5.0 million
= Market Value of Company (pre-issue): Rs 590 million

+ Cash Infusion through Rights Issue: Rs 120 million

= Market Value of Company (post-issue): Rs 710 million
/ Number of Shares (post-issue): 6.5 million
= Assumed Market Price (post-issue): Rs 109.23
(-) Rights Issue Price: Rs 80
= Value of Rights: Rs 29.23

Last edited by Antonym on Tue Jun 12, 2012 11:47 pm; edited 1 time in total

rmark · 7 11-Jun-2012 RIGHTS ISSUE OF SHARES - CIT, CFI Tue Jun 12, 2012 9:06 am

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11-Jun-2012 RIGHTS ISSUE OF SHARES - CIT, CFI

http://www.cse.lk/cmt/upload_cse_announcements/631339415114_.pdf

Backstage · 8 Re: 11-Jun-2012 Rights Issue Of Shares - CIT, CFI Wed Jun 13, 2012 11:41 am

Backstage

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Antonym wrote:My gut instinct tells me that CIT & CFI will get merged at some point, and this rights issue is just the preliminary step. After the issue, both companies will have 6.5 million shares each.

Based on current market price, I have tried to calculate a possible post-issue price and rights price. Please let me know whether there are any logical flaws in my calculations.

Colombo Investment Trust PLC
Current Market Price: Rs 106.70
X Number of Shares (pre-issue): 5.5 million
= Market Value of Company (pre-issue): Rs 586.85 million

+ Cash Infusion through Rights Issue: Rs 80 million

= Market Value of Company (post-issue): Rs 666.85 million
/ Number of Shares (post-issue): 6.5 million
= Assumed Market Price (post-issue): Rs 102.59
(-) Rights Issue Price: Rs 80
= Value of Rights: Rs 22.59

Colombo Fort Investments PLC
Current Market Price: Rs 118
X Number of Shares (pre-issue): 5.0 million
= Market Value of Company (pre-issue): Rs 590 million

+ Cash Infusion through Rights Issue: Rs 120 million

= Market Value of Company (post-issue): Rs 710 million
/ Number of Shares (post-issue): 6.5 million
= Assumed Market Price (post-issue): Rs 109.23
(-) Rights Issue Price: Rs 80
= Value of Rights: Rs 29.23

Thanks Antony

Slstock · 9 Re: 11-Jun-2012 Rights Issue Of Shares - CIT, CFI Wed Jun 13, 2012 12:27 pm

Slstock

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Observation:

CIT has lesser pubic holidng than CFI. Also CIT portfolio vlaue is more as some already calculated. But right now CIT is only following CFI for some reason. Also CIT right issue dilution is lesser than CFI so the the intrinsic value of CIT should be more in that case too.

Backstage · 10 Re: 11-Jun-2012 Rights Issue Of Shares - CIT, CFI Wed Jun 13, 2012 12:43 pm

Backstage

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slstock wrote:
Observation:

CIT has lesser pubic holidng than CFI. Also CIT portfolio vlaue is more as some already calculated. But right now CIT is only following CFI for some reason. Also CIT right issue dilution is lesser than CFI so the the intrinsic value of CIT should be more in that case too.

Interesting. I am mulling with the idea of selling my CFLB and increasing my CIT stake.