Friday, June 10, 2011

Pertama holdings[Harvey Norman]trading halted

Article below assumed that the trading halted is due to the buyout offer

The price offered to minority shareholders[the 13%] will the the premium offered + 5-day volume weighted average share price before trading halted.

Lets make an assumption
premium = 10-20%
5-day volume weighted average share price = guess its around 0.56-0.57(too lazy to do the maths)

the thereotical exit price based on above assumption will be around 0.616 to 0.684..close to the price[$0.65] Harvey Norman bought out a shareholder who own a huge block of shares.

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