Those of the company's register at 5pm on 16 July will be entitled to these rights.
Let us recapitulate;
On offer:
- Rights issue at 0.65 sen on a basis of 800 shares for every 1000 shares held(4:5)
- Free warrants to subscribe for BJF at 70 sen also on the basis of 800 warrants for every 1000 BJF shares held(4:5)
Let us advice some friends who bought the following numbers of shares.
Friend A: 5,000 shares
Friend B: 2,300 shares
Friend C: 300 shares
Friend D: 200 shares
Friend E: 200 shares
These are real friends but the bought the shares at different prices. We will mention that by and by.
Let us look at Friend A:
He has a cool 5,000 shares which he bought from 92.5 sen to RM1.03 sen. He paid a gross sum of RM4,795. His average price would be RM0.96 sen per share.
So, how many rights is he entitled to and how much must he cough out?
Since he has 5,000 shares, he is entitled to 4,000 rights and 4,000 free warrants.
So, he has to pay RM650.00 per thousand For 5,000 shares he therefore has to pay RM2,600
Assuming he does not want to part with cash, he can sell the rights clean on the market at whatever going price it can fetch.
Similarly if the free warrants on on sale, he can dispose them as well.
However, if he is an investor for the long haul with belief that BJF can fetch more when profit making BStarbucks up the ante on the revenue sheet in the current year as well as the Indonesian operations can start to bring positive returns circa 2013, then he may invest another RM2,600.
He can also hold onto the free warrants which he can dispose of when the price is right or he can convert them. At the current price, he will stand to gain 60 RMsen if the price maintains at RM1.30 per share.
As always, if he holds odd lots, he may apply for excess to make these into a marketable lot. Most companies have this policy.
As Friend A does not have any odd lots, he may apply for excess for his chance to obtain any may be remote.
If he takes up all his his rights, he will have 9,000 BJF shares plus the free warrants.
Let us move to Friend B.
He has 2,300 shares.
He bought 300 shares at RM1.03 and paid out RM309. Then he bought another 2,000 recently before it went ex-dividend. He paid RM1.265 for the 2000 shares amounting to cash outlay of RM2,530.
Now, how many rights is he entitled to? Yes, to 1,840 shares at 0.65 sen each. So let us assume he will take up his entitlement. So, he will have to pay RM1,196 for the rights. As he has an odd lot of 40 shares, he can try his luck by buying 60 excess shares. They will likely give it to him. The extra cash to buy excess is not computed here.
At the end of the exercise, he should have 4,200 shares and 1,840 warrants.
Friend C has 300 shares only. He bought it at RM1.03 as well and paid RM309. So he is entitled to 240 rights issue at 0.65 sen. His outlay will be RM156.00. As he also has an odd lot of 40 shares, he should apply for an excess 60 shares.The extra cash to buy excess is not computed here.
At the end of this exercise, he should have 600 BJF shares and 240 warrants.
Now let us advise Friend D and also Friend E. Both also bought these shares at RM1.03. So they paid out RM206.00 each.
For this exercise, they are entitled to 160 shares each. So they will have to pay RM104 each for their rights issue. As both of them have odd lots of 40 shares, they should buy excess shares at RM26.
At the end of the day, they will both have 360 shares or 400 shares if they are successful i ntheir excess applications.Also both will have 160 free warrants to sell and to convert.
In total, this is the capital outlay for them
Friend A: RM2,600 nett
Friend B: RM1,196 plus RM39 if he buys the excess shares = RM1,235
Friend C:RM156 plus RM39 if he buys the excess shares = RM195
Friend D:RM104 plus RM26 if he buys the excess shares = RM130
Friend E:RM104 plus RM26 if he buys the excess shares = RM130
As at 11.40 am today (3 July 2012), BJF has touched RM
So, how many rights is he entitled to and how much must he cough out?
Since he has 5,000 shares, he is entitled to 4,000 rights and 4,000 free warrants.
So, he has to pay RM650.00 per thousand For 5,000 shares he therefore has to pay RM2,600
Assuming he does not want to part with cash, he can sell the rights clean on the market at whatever going price it can fetch.
Similarly if the free warrants on on sale, he can dispose them as well.
However, if he is an investor for the long haul with belief that BJF can fetch more when profit making BStarbucks up the ante on the revenue sheet in the current year as well as the Indonesian operations can start to bring positive returns circa 2013, then he may invest another RM2,600.
He can also hold onto the free warrants which he can dispose of when the price is right or he can convert them. At the current price, he will stand to gain 60 RMsen if the price maintains at RM1.30 per share.
As always, if he holds odd lots, he may apply for excess to make these into a marketable lot. Most companies have this policy.
As Friend A does not have any odd lots, he may apply for excess for his chance to obtain any may be remote.
If he takes up all his his rights, he will have 9,000 BJF shares plus the free warrants.
Let us move to Friend B.
He has 2,300 shares.
He bought 300 shares at RM1.03 and paid out RM309. Then he bought another 2,000 recently before it went ex-dividend. He paid RM1.265 for the 2000 shares amounting to cash outlay of RM2,530.
Now, how many rights is he entitled to? Yes, to 1,840 shares at 0.65 sen each. So let us assume he will take up his entitlement. So, he will have to pay RM1,196 for the rights. As he has an odd lot of 40 shares, he can try his luck by buying 60 excess shares. They will likely give it to him. The extra cash to buy excess is not computed here.
At the end of the exercise, he should have 4,200 shares and 1,840 warrants.
Friend C has 300 shares only. He bought it at RM1.03 as well and paid RM309. So he is entitled to 240 rights issue at 0.65 sen. His outlay will be RM156.00. As he also has an odd lot of 40 shares, he should apply for an excess 60 shares.The extra cash to buy excess is not computed here.
At the end of this exercise, he should have 600 BJF shares and 240 warrants.
Now let us advise Friend D and also Friend E. Both also bought these shares at RM1.03. So they paid out RM206.00 each.
For this exercise, they are entitled to 160 shares each. So they will have to pay RM104 each for their rights issue. As both of them have odd lots of 40 shares, they should buy excess shares at RM26.
At the end of the day, they will both have 360 shares or 400 shares if they are successful i ntheir excess applications.Also both will have 160 free warrants to sell and to convert.
In total, this is the capital outlay for them
Friend A: RM2,600 nett
Friend B: RM1,196 plus RM39 if he buys the excess shares = RM1,235
Friend C:RM156 plus RM39 if he buys the excess shares = RM195
Friend D:RM104 plus RM26 if he buys the excess shares = RM130
Friend E:RM104 plus RM26 if he buys the excess shares = RM130
As at 11.40 am today (3 July 2012), BJF has touched RM
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