Closing prices on 11 Jan 08 for:
KLK 17.90
BKAWAN 11.30
one share of BKAWAN holds about 1.14 shares of KLK
If I were Dato’ Seri Lee Oi Hian (The Chairman and CEO of Kuala Lumpur Kepong Bhd) who holds 0.01% direct interest, 46. 68 indirect interest in KLK (as announced on 21 Jan 08), I would…
Sell KLK and buy BKAWAN (excluding brokerage for easy calculation) … See what happen here…
Eg. Sell 1000 shares of KLK, sales proceed RM 17900.
Use RM 17900 to buy BKAWAN. Own RM 17900/ RM 11.30 = 1584 shares of BKAWAN => holding 1584 x 1.14 = 1805 shares of KLK + other assets of BKAWAN
Without having to fork out anything or any money , one share of KLK can become 1.805 KLK shares + some BKAWAN’s assets, simply by selling KLK and buying BKAWAN! Furthermore, BKAWAN is a zero debt company.
So, WHY NOT?
BKAWAN is a low profile company and many may not have heard of it. In fact, it has market capital of RM 4839.1 million as of 31 January 08, bigger than companies such as Magnum, Airasia, Shell(M), WCT, STAR and Proton.
