Forum Archive Index - December 1999

["Rick" <zfar@hotmail.com>]

hi,

I am one of the 95% or so who accepted the takeover offer of Shortland properties....but now i'm a bit confused.

 

my understanding was the offer was 76 cents.  (ie 34 cents cash and 42 cents in capital properties notes per share.)

so if my holding was 5000 SHP shares i get:

$1700 in cash (5000 x 0.34)

plus 2100 capital properties capital notes (5000 x 0.42).

 

thats all fine...thats what I actually got.

 

BUT, capital properties capital notes are trading at 0.42 cents.

so if i sell my 2100 notes now, I only get $882

 

so somehow my 5000 SHP shares at 0.66 cents went from being worth $3300,

to now being worth $1700 + $882 = $2582.

so I have lost $718.

 

Can someone please explain where I am getting confused!!  or are my calculations correct?

 

thanks

rick