I don't reckon that Wah Nam are after additional holdings. From recollection based on a newspaper article after the takeover, Wah Nam's associates shifted their holdings to a few banks, who in turn accepted the scrip offer. The associates were having their shares mopped up by the banks around the $6 mark. The associates are out of BRM and WNI and pocketed around $6 per share.
The banks are then left with Wah Nam scrip which has fallen in value by the same amount as the BRM share price. The banks are out of pocket but maybe there's a plan.
The AGM presentation says that Wah Nam will be used to raise funds in China incl HK. A capital raising say for $500million at $1.50-$1.75 with the banks that accepted the Wah Nam scrip being those that are 'invited' to throw in the dollars for a few hundred million shares. Once they have these shares, the SP is allowed to move up to say $6 based on good progess and news etc. The banks have made a quick few hundred million dollars profit.
Whether the banks remain to help Wah Nam achieve 100% ownership or they exit with those profits remains to be seen.
At the moment, Wah Nam's associates are out of BRM and made a healthy profit. The only ones who have seen their holding destroyed are the banks supporting Wah Nam and minority BRM shareholders. The banks are likely to be given a means to profit but whether the minority shareholders are likely to benefit remains to be seen.
I really believe that things are progressing in the right manner, but not sure if athe moment the SP is being allowed to find a higher level.
BRM Price at posting:
$1.98 Sentiment: None Disclosure: Held
