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rainbowzzy LV7
发表于 9-9-2009 16:23:24
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DJ MARKET TALK:Genting Off 4.2%;May Fall More On Unit's Rts Issue
0733 GMT [Dow Jones] Genting (3182.KU) down 4.2% at MYR6.87, with trader tipping stock may fall to test MYR6.75 (Sept. 4 low) in medium-term, on 54%-owned unit Genting Singapore's (G13.SG) plans to raise S$1.63 billion in a rights issue to boost capital position, further expand business. Unit says in statement plans to issue up to 2.04 billion shares at a price of S$0.80/share (32.8% discount to Tuesday closing price of S$1.19). "The company intends to use approximately 60% of the net proceeds raised from the rights issue for funding of future acquisitions and/or investments undertaken by the group, or joint ventures," Genting Singapore says. Trader says selling pressure on parent company will persist as unit's cash call "sizable" at S$880 million for Genting's portion. "It will affect the holding company's cash flow and the returns from the Singapore investment are likely very long term in nature," says trader. (KPL) |
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