The shares of both Keppel Land and Keppel Corp had been halted for 3 days during which the results for both companies were reported.
There were various speculations for the stoppage of trading, some thought it to be a special dividend being announced while others thought it to be a takeover by Keppel Corp. The latter provided the precise speculation! Keppel Corp is buying over Keppel Land for $4.38 / $4.60 (if it hits the 90% mark). This is after the Special Dividend of $0.14 announced by Keppel Land & $0.30 by Keppel Corp as well! Thereafter, Keppel Corp would acquire the Keppel Land shares at $4.24 / $4.46 (90% approval)
Now, for Keppel Land owners, it's a 26% premium compared to the last traded price. I'm sure most of you have read about such statistics therefore I'm gonna provide a more interesting insight on this situation.
Keppel Land closed at $4.54 today (27th Jan 2015). Assuming the price at which Keppel Corp would purchase would be $4.46 (after dividends + obtain 90% approval), one would be able to make a slight profit from this!
Let's take the total commission as $30 (rounded up), Therefore it would be an additional 3 cents to the purchase price, which adds up to $4.57. After the Books Closure Date, I highly doubt that Keppel Land would fall below the acquisition price of $4.46. However, if Keppel Corp is true to their words and purchase Keppel Land at $4.60 (before dividends are paid), you can see from here that one is able to gain $30 for every 1000 shares! Oh well, it may not be a lot, but if you purchase many lots, you'd be able to make quite a small sum!
These are just thoughts of mine and it may or may not turn out that way. Hope that those of you who take on this method would be able to gain some cash! (:
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