re: Ann: WNI: Fulfilment of Foreign investmen...
At least now we have confirmation that the only people we can depend upon are ourselves. The dependent directors are about to back flip out of the game. Good. They were only wasting our time.
Now we see if Wah Nam are actually serious about buying our shares.
The problem with any sort of valuation of a share based on market price is that it only becomes relevant when you want to dispose of the share. Since anyone still holding BRM does not want to sell at the current market price, that price is irrelevant. Since most still holding didn't want to sell at $6, that price is also irrelevant.
This is one reason why Wah Nam's current offer makes no sense.
If a bidder wants to make a fair offer simply by considering a share price, then it needs to be looking at the price at which each shareholder is willing to dispose of his/her shares - and perhaps discount that value for a time element. Since this is impossible, a fair valuation can only be arrived at by considering all of the assets of a company and the likely future profit stream and determine a price from that information.
If you are going to force people to sell, you cannot reasonably expect them to accept a price based simply on whatever the market price happens to be at that time. It doesn’t make sense. It is not just.
This is why I think there is a possibility that the offer price can be challenged if we reach the point of compulsory acquisition.
BRM Price at posting:
$2.14 Sentiment: Hold Disclosure: Held