Originally posted by Names little
Hi Randosmit, well one AMAL share is currently worth 28c on the SGX, so perhaps that is an indication of their value. It will be interesting to see if any substantial variations emerge between the value of one AMAL share on SGX (40f) and one AMAL share on ASX (A40) when all holders are once again in a position to trade the stock if they so desire.
https://www.bloomberg.com/quote/AMS:SP
Thanks
Sure, that's a great starting point checking the SGX pricing.
However things have changed now, once the shares are delivered on the ASX from existing TAW holders then the risks associated with the company structural issues have been reduced. This may lead to people re-valuing the company closer to what I would consider fair value (speculative), which IMO is more than a few percent higher than the SGD 28c SGX price.
It may explain why A40 is already trading deferred at AUD 32c.
The SGD and AUD exchange rate is (close enough to) 1-to-1, on parity with each other, so if the SGX price were to be the source of truth then we should see deferred trading in A40 at about AUD 28c.
Of course the 32c could also just be someone wanting to manipulate the market higher by getting a few trading days in at 32c low/high/open/close ..
I guess my point is, today the merger is not complete. Monday it will be. While we know nothing will change the merger outcome now, others who don't follow as closely have Dec 17th set as the merger date. Even more people again will suddenly have this new A40 jump up their watchlists (if they're tracking Market Capital, Resource Size, etc .. things are no longer 2 companies at 50% each lower down the watchlist, but one company at 100% much higher up the watchlist).
Anyways, will be interesting to see .. Not long now.
