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SCMP controller "sells" 14.4% to 3 banks, but grants put and gets call option at same price

Company announcement, 2-Mar-2009

Comment: after a year of stock suspension, SCMP's controller, Kerry group, has "sold" 14.4% to 3 banks, cutting its stake to 74.9%. But each bank has a 4-year put option to sell the shares back to Kerry, and Kerry has the option to trigger the put option, making it a call option too, all at the same price, adjusted for divdends plus a 1.1% p.a. fee. The banks keep the "sale" proceeds as collateral. This smoke-and-mirrors really does nothing to increase the float. The free-float rule is clearly obsolete and should just be scrapped. Investors have been deprived of trading opportunity for a year, for this?



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