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17-01-2021, 05:40 PM
Why is there a need to be angry? We can't fault someone on the other side of the trade for wanting to make money - their profit motivation was the key for any proposed transaction to happen in the first place.
I remember d.o.g. once mentioned over here that it is not good enough for OPMI to buy at 0.8X intrinsic value and expect the big shark to privatize at 1X intrinsic value. The big shark needs to make a profit and hence will only offer 0.8X IV. So working backwards for the OPMI, we need to be buying at 0.6X IV for a reasonable chance at profit.
It is only the rare occurrence where big whales are swimming and are aiming to gobble up big sharks, will there be bidding that goes beyond the OPMI's wildest dream (one of the last time on the local market was F&N been courted by both OUE and Chaoren, and that was many years ago). Most OPMIs have to be contended with been the captive seller.
I remember d.o.g. once mentioned over here that it is not good enough for OPMI to buy at 0.8X intrinsic value and expect the big shark to privatize at 1X intrinsic value. The big shark needs to make a profit and hence will only offer 0.8X IV. So working backwards for the OPMI, we need to be buying at 0.6X IV for a reasonable chance at profit.
It is only the rare occurrence where big whales are swimming and are aiming to gobble up big sharks, will there be bidding that goes beyond the OPMI's wildest dream (one of the last time on the local market was F&N been courted by both OUE and Chaoren, and that was many years ago). Most OPMIs have to be contended with been the captive seller.
I am not a certified financial advisor and so nothing of what I say should be construed as financial advice. Please consult a certified financial advisor for advice instead.