KMC

Many years ago, I own MIM shares.  Xstrata bought a significant chunk of it and took over the control of its management but not the company.  Then it issued new shares at a higher price than the market.  Few shareholders took up the offer, neither did I.  When Xstrata ended up with a larger chunk of MIM, it seized control of the entire company and paid off the existing shareholders a pittance.  MIM then went on to make Xstrata huge profits.  This a takeover without having to pay a premium.  Why the ASX allows such maneuver?  Xstrata in my opinion is a corporate beast after that event.

Today KMC did a similar trick but the big difference is, the share stopped trading at 4.9c and new shares were issued at 1c.  Less than 20% of the rights were taken up.  The prospectus showed that some people on the board will be entitled to grab those shares....

At least this stock offered the new shares at a much lower price than was prevailing and GAVE the shareholders the real opportunity unlike Xstrata.  I struggled on Monday to pay for my allocation.  Netbank crashed that morning!  And the amount was not small; 3 new shares for every 1 current share. I don't what will happen when it re-lists on the stock market.  Share prices have been tumbling so I think KMC would fall below the issue price.  Those who participated in full will have less pain.

Interestingly, those board members have names sounding like Malaysian or Singaporean Chinese.