ASX:WNI is worth nothing. You would have to be a complete fool to choose ASX:WNI. At least with HK:WNI you 'might' have a better chance of selling them.
But IMO every BRM shareholder (except WN) who gets WNI will be selling them on market. If you had money right now, would you buy WNI shares? Who wants shares on a foreign exchange and having the complexities of foreign income tax, not to mention the capital gains tax complexities of the hybrid offer?
If everyone is trying to sell WNI, the SP will get smashed. And, IMO it has a long way to go down. WNI is massively overvalued at the moment (about 200%) compared to BRM.
For $295M you can buy 100% of BRM.
or, if you have another $26M
For $321M you can buy 55.33% of BRM by buying WNI.
Wah Nam's market cap should only be $163M (55.33% of BRM), yet it is currently $321M. wah nam's limousine business and struggling copper mine have no material value, and in my mind are a liability. what is their core business?
So, to answer the question about whether Wah nam shares will go up after the takeover I would expect WNI shares to fall approximately by 50%.
Not a good investment at all, unless you like throwing money away.
BRM Price at posting:
$2.04 Sentiment: Hold Disclosure: Held
