I've got a bunch of SAL, and now a smaller bunch of SALN. Kindly confirm, or otherwise, my understanding of the situation. I instruct SBK to pay for them at the 60c rate, and then they become SAL shares valued at the higher 107-ish (market rate)cents. If so, then how can it be that SALN is being traded at 58c, when another 60c is required to own the actual share? Are these folks crazy, or am I missing a sandwich from the picnic?
Your understanding is correct. This presents an opportunity to sell the NPL's and buy the cheaper ords if you want to increase your holding. Brokerage must be considered though which partly explains the price gap.
well 60c + 58c = 108c around the market price of SAL. So you can sell the SALN (remember there is a time limit and then they expire worthless), or you could instruct us to buy new SAL's for you at 60c with every one SALN entilting you to buy 1 SAL. So yes you get free money, unless the SAL price moves lower postthe issue.
60 plus 58 equals 118, hence my question. Would be cheaper right now to buy SAL at 107c not SALN at 58c. I think expiry is a while yet, cos their SENS says that they're posting shareholder info re offer next week. BTW: who do I instruct at SBK to buy at 60c?
the offer closes on 22 June and all unsold or not acted on SALN's will disappear. Also
executives will be briefing investors on the opening of its rights offer on Tuesday, 5 June and Wednesday, 6 June in Johannesburg and Cape Town respectively. The presentation will take place at the Balalaika Hotel in Sandton, Johannesburg and the Mount Nelson in Cape Town. Both presentations will begin at 12h00.