KUALA LUMPUR: Shares of COCOALAND HOLDINGS BHD [] extended their losses in the morning session on Monday, Aug 30 as investors could have been disappointed over the low price which Fraser & Neave Holdings Bhd was paying for to acquire a 23.08% stake at RM1.38 each and also the weaker earnings.
At 12.10pm, Cocoaland was down 14 sen to RM2.62 with 502,400 shares done, extended its 11-sen decline from last Friday.
Last Thursday, Aug 26, the companies announced that F&N would subscribe for 39.5 million new Cocoaland shares or 23.08% at RM1.38 each. This was sharply below Cocoaland's last traded price of RM2.87.
Cocoaland had then said the issue price of RM1.38 was arrived on a negotiated basis. The issue price represents a price-to-book ratio of approximately 1.64 times and 1.57 times over the audited and unaudited consolidated net assets per share of Cocoaland of RM0.84 as at Dec 31, 2009 and 88 sen as at March 31, 2010 respectively.
Cocoalnd also posted lower earnings in the second quarter ended June 30, 2010 at RM1.01 million compared with RM5.61 million a year ago. Net assets per share were 91 sen.
At 12.10pm, Cocoaland was down 14 sen to RM2.62 with 502,400 shares done, extended its 11-sen decline from last Friday.
Last Thursday, Aug 26, the companies announced that F&N would subscribe for 39.5 million new Cocoaland shares or 23.08% at RM1.38 each. This was sharply below Cocoaland's last traded price of RM2.87.
Cocoaland had then said the issue price of RM1.38 was arrived on a negotiated basis. The issue price represents a price-to-book ratio of approximately 1.64 times and 1.57 times over the audited and unaudited consolidated net assets per share of Cocoaland of RM0.84 as at Dec 31, 2009 and 88 sen as at March 31, 2010 respectively.
Cocoalnd also posted lower earnings in the second quarter ended June 30, 2010 at RM1.01 million compared with RM5.61 million a year ago. Net assets per share were 91 sen.
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