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
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
DBS-V has a $5 rebate. might be worth to consider
ReplyDeleteHi foolishchameleon,
DeleteTrue true but wait till after 5th October hor. Hahaha.
i think alr confirm?
DeleteYes! There is an official announcement - http://infopub.sgx.com/FileOpen/CRT_Court_Sanction_BCS_and_Last_Day_of_Trading.ashx?App=Announcement&FileID=473120
DeleteSorry, but I think this is really bo liao. You want to come out 100k+ to make 200+ profit? Seriously?
ReplyDeleteHi Wong,
DeleteHahaha. 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.
haha... why not?
DeleteCause 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