Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

Accept cash offer or reject and convert

Reply
Highlighted
New Contributor
Altron has acquisition of Altech has now put 2 options on the table 1.accept a cash offer of R47.50 per share or convert to Altron preference shares at a conversation rate. Any ideas on which options will work out best since I am at a major loss on my portfolio.
0 Kudos
7 REPLIES 7
Highlighted
Valued Contributor
take the cash and run, this company a long way from finding the right path ..
0 Kudos
Highlighted
Not applicable
But it is a pref share, that is not a bad deal. While Altech is badly run, Altron is actually quite a tightly run ship. The one brother is revered, while the other is hated. Under decent leadership, the Altech Crown Jewels (Autopage and Netstar) might actually be nice strategic assets. Ordinary shares, I might say take the cash, but a discounted pref share? (I assume the pref shares are being offered at a discount?)
0 Kudos
Highlighted
Super Contributor
Prefs more or less offered at market value. Been dropping last 2 yrs dragged down by Altech performance. Only way to regain some of the losses is to go with the pref option. Anyway, only paying part of the deal (50%)with the prefs, rest is cash depending on the uptake of the prefs. My understanding is that the institutionals are going for the pref option so expect 50/50 split if you request pref option. Agreed with skaap on mngmt and assets. I see potential so going for the pref option, therefore also saving some costs and getting some cash.
0 Kudos
Highlighted
Valued Contributor
but a pref is a completely different asset class to a share ..
0 Kudos
Highlighted
Contributor
I would tend to agree with Simon, if in doubt take the cash and find somewhere else to 'park' it
0 Kudos
Highlighted
New Contributor
Yes they are offering 50/50 depending on the uptake. I also noticed in the circular to shareholders Coronation bought 2807473 in May 2013, could this be HOPE if you considered keeping the shares?
0 Kudos
Highlighted
Super Contributor
I think Coronation have sold most of them making a neat 20%+ profit probably bought before the announcement. Anyway, after more consideration, I have changed my mind and going for the cash. At 2.22 prefs for 1 ALT, the cost of 1pref= 2140. Trading at 1920 so +/-10% diffs and as Simon puts it, it is a different asset class.
0 Kudos