$$$ KPO and CZM $$$: Croesus Retail Trust - Interesting Opportunity to Arbitrage

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Tuesday, October 3, 2017

Croesus Retail Trust - Interesting Opportunity to Arbitrage

As you might already know, Croesus Retail Trust will be delisted on 27th October 2017 as it has been acquired - Blackstone makes offer for Croesus Retail Trust at S$1.17 per unit.

The interesting thing is that the current share price is S$1.165 and that presents an opportunity to arbitrage! I buy at $1.165, hold till 11th October 2017 and get paid S$1.17 on 27th October 2017. As a SCB priority customer, there is no minimum commission and the commission structure is as follows:

1. Brokerage Fees: 0.18%
2. SGX Clearing Fee: 0.04%
3. GST: 7.00%


A quick calculation shows that the return is about 0.19%. Assuming that I make the purchase tomorrow (4th October 2017 and hold till it XD/XE on 11th October 2017 - about 8 days), the annualized return becomes 8.82%!

Is this risk-free? Certainly not if it is before 5th October 2017...


There is a court hearing to sanction the scheme so there is a extremely tiny possibility that it might not go through or even getting delayed. Hence, the market is pricing it at S$1.165 for people that want to get the money now and seal the deal.

However, if the share price remains to be at S$1.165 after 5th October 2017, KPO might throw all his cash into it and collect them back on 27th October 2017 xD

Health - KPO Needs to Lose Weight
Date: 2017-10-03
Weight: 78.5 kg
BMI: 26.2

8 comments:

  1. DBS-V has a $5 rebate. might be worth to consider

    ReplyDelete
    Replies
    1. Hi foolishchameleon,

      True true but wait till after 5th October hor. Hahaha.

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    2. i think alr confirm?

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    3. Yes! There is an official announcement - http://infopub.sgx.com/FileOpen/CRT_Court_Sanction_BCS_and_Last_Day_of_Trading.ashx?App=Announcement&FileID=473120

      Delete
  2. Sorry, but I think this is really bo liao. You want to come out 100k+ to make 200+ profit? Seriously?

    ReplyDelete
    Replies
    1. Hi Wong,

      Hahaha. It depends on how you see it right? That is like a guaranteed annualized return close to 9%. 200+ also money $_$

      Go look at the volume, there's about 300k yesterday and 200k today. There are certainly lots of bo liao people/funds/companies doing it ;)

      Having said that, I dun think retail investors like you or me will do it la.

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    2. haha... why not?

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    3. Cause of fear lor. Now that the news is confirm. Although the price is still at $1.165, the bid quantity is 11 million, will never reach us...

      Delete