Friday, February 15, 2008

UEMWorld update

The restructuring exercise has been approved by the board of directors of UEMWorld!

It's neither UEMDrive nor SimeUEM.... it's UEMWorld-Streamline. The exercise will result in UEMWorld listing its golden-child UEMLand and disposing its shares in CIMA, UEMBuilders, Opus and Pharmaniaga, and returning the subsequent gains to shareholders.

The details...

UEMLand will be listed and the existing shareholders of UEMWorld will be given direct participation of UEMLand (UEMLand has been the prime driver of UEMWorld share price).

UEM World will essentially sell the shares of its listed subsidiaries to all existing UEMWorld shareholders. If the shareholders choose not to take up the offer (they have to pay RM120.26, at premium, for 35 shares in UEM Builders, 21 shares in Opus, 5 shares in Pharmaniaga, and 5 shares in CIMA), UEMGroup will acquire them under the proposed exercise.

This will result in gains at UEMWorld, which will be distributed back to all UEMWorld shareholders. Yummy!

Under the proposed restructuring exercise, a shareholder owning 100 UEMWorld will receive the following goodies:
(1) 125 UEMLand shares
(2) RM125.82 cash

Nice.

It is not often we get to see a counter unlocking its value and returning them to shareholders. :)

3 cheers for UEMWorld....

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