REEF, Citrus Plc Mandatory offer price is Rs200 ?

John · 1 REEF, Citrus Plc Mandatory offer price is Rs200 ? Thu Feb 03, 2011 2:26 pm

John

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Experts, comments are needed desperately !!!!
My broker told me that something special can be happened with this mandatory offer. Pl do more research about this
You can refer the dealing by directors

Go to CSE site
Search for REEF and click on Normal share to enter to REEF profile
Click the "News and INFO" tab and select "announcements"

DEALINGS BY DIRECTORS
03 November 2010

Purchased by Sarva Integrated: 200,000 shares at Rs.20 per share
After few days REEF did a 10 to 1 consolidation
price per adjusted share = 20*10 = Rs 200

Good Luck

innam · 2 Re: REEF, Citrus Plc Mandatory offer price is Rs200 ? Thu Feb 03, 2011 2:43 pm

innam

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the offer document has already gone out dated January 28th.
i don't know what's in the offer document but judging by the fact that the price hasn't magically jumped to 200 the mandatory offer is at 86.
this is the CSE announcement regarding the offer doc http://www.cse.lk/cmt/upload_cse_announcements/5651296706477_.pdf
so that's the proof that the offer is already made.
The SEC regulations say that the offer should be made at the highest price paid for the share by the offeror....nowhere does it say that the price needs to be adjusted for splits/rights/consolidations. So 200 is a bit of a stretch but someone who has read the actual offer doc may be able to clarify that the offer is at 86.

John · 3 REEF Thu Feb 03, 2011 3:20 pm

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By this way anyone can take 51% of a company and give a share consolidation. Sad

"The SEC regulations say that the offer should be made at the highest price paid for the share by the offeror"; Agreed. But is the definition of the "share” that much firm? Me, it’s more sense towards a percentage meaning. I am totally blind on this case.
Anyway thanks for the comment

John · 4 Re: REEF, Citrus Plc Mandatory offer price is Rs200 ? Thu Feb 03, 2011 3:36 pm

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Other experts (mono, Quibit, Gaja, slstock, econ, james21, tubal, $$$, KDS, Avril), what do you think?
Sorry if I missed any other experts. But comments are welcome from everyone

cse.alpha · 5 Re: REEF, Citrus Plc Mandatory offer price is Rs200 ? Thu Feb 03, 2011 4:19 pm

cse.alpha

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The price has to also be adjusted for the subsequent 2 for 1 Rights at Rs25 in Nov 2010 - so a pre-consolidation, pre-rights price of Rs20, would effectively work out to Rs83.3 on this basis [i.e. Rs {(20 * 10) + (25 * 2)} / 3 ]

Some of the dates in the prospectus though appear incorrect, with purchases at Rs25 per share indicated on 8 Oct 2010, when the share did not trade at those levels on those days. The Rs25 purchases presumably refer to the rights (XR was in Nov 2010).

tubal · 6 Re: REEF, Citrus Plc Mandatory offer price is Rs200 ? Thu Feb 03, 2011 6:33 pm

tubal

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John wrote:Other experts (mono, Quibit, Gaja, slstock, econ, james21, tubal, $$$, KDS, Avril), what do you think?
Sorry if I missed any other experts. But comments are welcome from everyone

I think there is a lot of merit in what you say.

sapumal · 7 Re: REEF, Citrus Plc Mandatory offer price is Rs200 ? Fri Feb 04, 2011 4:48 pm

sapumal

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I have the same doubt....
PAY and PURCHASE can have two meanings

According to the "Mandatory Offer to purchase REEF by Emagewise (Pvt.) Ltd" published in the same location, Sarva Integrated has 90,000 shares.
60,000 shares obtained by the right issue, they paid = Rs 1,500,000
For the remaining 30,000 shares, they paid = Rs 5,990,000
Average price paid per share is Rs 199.60

Pay - To compensate someone for something.
Purchase - To obtain ownership of a security or other asset in exchange for money or value.

31.

(3) Offers required to be made under this rule shall,in respect of any class of equity shares involved, be in cash, or where securities are being offered, the offer shall also include a cash alternative, at not less than the highest price paid by the offeror and persons acting in concert with the offeror, for shares of that class within the preceding twelve months. Where any such shares have been acquired for a consideration other than cash, the offeror shall, where the offer involves more than one class of equity shares, obtain the prior approval of the Commission before extending an offer under this rule.

you can inform CSE. But nothing will be changed now Very Happy

Gaja · 8 Re: REEF, Citrus Plc Mandatory offer price is Rs200 ? Fri Feb 04, 2011 5:30 pm

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First of all i am not an expert, and not well conversation with the SEC Requirements as well, sometimes back i bought 10,000 shares of REEF at 3.00 and disposed it at 3.40 within very short period of time ( within a day or two ), after that i am very interested in the hotel sector and i have few shares of hotels which i bought long term ago.

As far as your concern, i am not sure about the valuation because with the ordinary shares future conversation to shares also pending

My advise to you is on this way, if you see value of future reef shares is going to be above the offer price and you forecast of the percentage growth is going to be above your required rate of return on your investment and if you satisfy about their future prospect then you can consider about holding it otherwise think about disposing it

About the right price to be offered am not sure about it, but check with somebody who this area

sapumal

sapumal

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John,
How many REEF shares do you have in your portfolio ?

sapumal

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I suspect are there anything remains to buy through the mandatory offer

** Assumption : Mr.W.D.N.H.Perera, A.L.Devasurendra,Jayantha Dewage,Tharana Gangul Thoradeniya didn't sell shares and accepted all the rights

Emagewise,Asia Commerce, Sarve Integrated, V.S. Fernando, D.S. Jayaweera =14,826,010
Mr.Arumadura Samantha Rayynor Silva = 5,061,000
First Capital Markets Ltd/Mr.W.D.N.H.Perera = 2,706,591 *
Commercial Bank Of Ceylon Plc/A.L.Devasurendra = 2,407,800 *
Seylan Bank Plc/Jayantha Dewage = 1,768,800 *
Mr.Tharana Gangul Thoradeniya = 1,686,300 *
M/S Corona Tea Stores Limited = 1,483,431
SSBT - Deustche Bank AG = 1,202,400

Total 31,142,332
reducing 1/11 crossing (approximately 2millions) 29,142,332
Remained shares by total 47,191,953 = 18,049,621 (38%)

Weekly Transaction Volumes after 1/11 (According to the CSE site)

2011-2 = 2,534,940 (Approximately)
2011-3 = 1,528,000
2011-4 = 3,021,600
2011-5 = 4,326,500

Total 11,411,040
I think Most of them are collected by this M** group

Last edited by sapumal on Sat Feb 05, 2011 12:28 am; edited 4 times in total

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REEF, Citrus Plc Mandatory offer price is Rs200 ?

1 REEF, Citrus Plc Mandatory offer price is Rs200 ? Thu Feb 03, 2011 2:26 pm

John

2 Re: REEF, Citrus Plc Mandatory offer price is Rs200 ? Thu Feb 03, 2011 2:43 pm

innam

3 REEF Thu Feb 03, 2011 3:20 pm

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4 Re: REEF, Citrus Plc Mandatory offer price is Rs200 ? Thu Feb 03, 2011 3:36 pm

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5 Re: REEF, Citrus Plc Mandatory offer price is Rs200 ? Thu Feb 03, 2011 4:19 pm

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8 Re: REEF, Citrus Plc Mandatory offer price is Rs200 ? Fri Feb 04, 2011 5:30 pm

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9 Re: REEF, Citrus Plc Mandatory offer price is Rs200 ? Fri Feb 04, 2011 11:41 pm

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