Tuesday was the last day of trading for A2B Australia Ltd (A2B). The takeover by ComfortDelGro Corporation will be finalised on the implementation date for the scheme of arrangement (takeover) on the 11th of April. The capital component for the takeover being $1.45 will hit bank accounts on the 12th April.
Shares in A2B were purchased at $2.12. Shareholders have received.
- $0.60 special dividend
- $0.2571 franking credits
- $1.45 takeover capital component
The A2B takeover was smooth sailing with not a single shareholder agitating for a higher price. Typically, with takeovers, there is always one shareholder who pops up saying the company is worth much more than the current takeover price. In this case, everyone seemed happy with the structure of the deal and the price being offered.
In the end, the position was open for 82 days and we managed to generate a profit of $935.71 or an 8.83% return on funds invested.
When we had capital invested in the position and at risk in the market the share price was very steady except for the ex-dividend date and movements in the share price were not correlated to the overall performance of the market.
CLOSED POSITION RESULT
Entry: Buy 5,000 A2B shares at $2.12
Dividend: $0.60 x 5,000 = $3,000
Franking Credits: $1,285.71
Capital Loss: $3,350.00
Total profit $935.71 or a 8.83% return on funds invested
