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Old 27-07-2016, 10:16 AM
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MasterID MasterID is offline
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Default SMRT buyout

Temasek is offering to buy SMRT at $1.68 and current trading price is around $1.635.

Why is there no arbitrage interest? Buy at $1.635 and sell at $1.68 for a profit of $0.045. Assuming things go smoothly, that's 2.75% margin to be paid in Nov 2016.

Maybe everyone feel that 2.75% for 4 months wait is way too long and will reject Temasek price of $1.68?

Vested just recently.
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Old 27-07-2016, 06:36 PM
windsurfing windsurfing is offline
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This happened to NOL also. Its the discount given due to uncertainty if deal doesnt go through, price will drop if it doesn't. But in all honesty it probably will go through la. I guess if you arent buying on margin (i.e. fully cash), just need to wait for it to go up to 1.68/1.675 then close out congrats on profit!
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Old 29-07-2016, 06:01 AM
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MasterID MasterID is offline
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It may still be worth to buy on margin, assuming those who offer around 4% p.a. interest. This is 2.75% profit in 4 months.

For every buyer at $1.635, there is a seller at $1.635, why is the seller selling at $1.635 now?
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Old 05-10-2016, 07:35 AM
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Temasek buying SMRT at $1.68.
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