SabMiller query..

redarrow

redarrow

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Hey..

So I'm still kinda a rookie at the whole investing thing, though I have been buying shares for a few years (via FNB share investor account).
A couple of months ago I randomly bought some SabMiller shares - 16 of them - at ~R625 and then stuff happened and they shot up nicely. :D

I'm confused about the stuff that happened/is happening though :p , if SabMiller is being bought out does that mean I'm gonna be forced to sell my shares?
I received an email from FNB with some brief info among which it said that SabMiller would be de-listed from the JSE, if that happens how would I track my shares, or even know that I still have them (if I do)?


Anyone understand what's going to happen?
 
You will probably be given the option to take up stock in the merged entity. If they don't list on the JSE you'll probably have to sell at the converted rate, but I'm sure they'll stay listed
 
redarrow said:
Hey..

So I'm still kinda a rookie at the whole investing thing, though I have been buying shares for a few years (via FNB share investor account).
A couple of months ago I randomly bought some SabMiller shares - 16 of them - at ~R625 and then stuff happened and they shot up nicely. :D

I'm confused about the stuff that happened/is happening though :p , if SabMiller is being bought out does that mean I'm gonna be forced to sell my shares?
I received an email from FNB with some brief info among which it said that SabMiller would be de-listed from the JSE, if that happens how would I track my shares, or even know that I still have them (if I do)?


Anyone understand what's going to happen?
Click to expand...

I had a similar incident many, many years ago. I bought shares at around 10 or 11c per share. The company share rose to about R1,50 in a few months and I made a huge profit. I then bought out.

A few months later the shares rose to over R2 and I also received notification that the company has been bought out by an American company and that they would delist here in SA.

I vaguely remember they did indeed offer shares in the new merged entity, but also offered to buy back shares at almost double the value, or something like that. I did not pay a lot of attention back then as I already bought out. But, I think what R13 says is also what happened back then.
 
Speak to your stockbroker. You will receive an official offer from AB Inbev to buy your SAB shares at the offer price. You can decide to sell or keep them, there is no obligation on you to take either course of action. If AB Inbev buys enough SAB shares, they can decide to delist the SAB shares, in which case your SAB shares (if you decided to keep them) will be converted to AB Inbev shares at some conversion ratio determined by the ruling prices of both shares at the date of conversion.

This will all happen at some time in the future once AB Inbev has obtained all the required regulatory approvals from competition commissions from here to Timbuktu to proceed with the transaction.
 
MickeyD said:
Is holding SABMiller a liquid asset?
Click to expand...

If I am not mistaken a liquid asset must be able to be converted into cash quickly and with minimal impact to the price received. Liquid assets are generally regarded in the same light as cash.


Shares in this regard is not, at least I don't think it is generally unless you have a dedicated broker that can sell an hand you the funds in one go?

Might be wrong here
 
I googled and I see it appears some stocks are liquid others are not:

In the market, liquidity has a slightly different meaning, although still tied to how easily assets, in this case shares of stock, can be converted to cash. The market for a stock is said to be liquid if the shares can be rapidly sold and the act of selling has little impact on the stock's price.
 
MickeyD said:
Is holding SABMiller a liquid asset?
Click to expand...

SABMiller would be considered liquid due to the volume of shares bought and sold per day (~7 million shares yesterday). If you wanted to sell shares it is highly unlikely you wouldn't be able to find a buyer on the same day. The only delay between selling and receiving cash is the period it takes brokers to pay you back (eg: you sell today but only receive the cash five days later).

Only companies with a smaller marker capitalisation and lower volumes could possibly be considered illiquid due to the low amount of interest generated in them (eg: a company with a volume of 500 shares traded a day may pose problems when you're trying to buy/sell 10 000).

Unless you were referring to the type of product they sell :whistle:
 
Am I the only one who thought MickeyD was just taking the mickey out of us and making a bad pun about sabmiller and liquid? .. you know, beer and all that..
 
redarrow said:
Am I the only one who thought MickeyD was just taking the mickey out of us and making a bad pun about sabmiller and liquid? .. you know, beer and all that..
Click to expand...

Not at all, I refrained from commenting about some people just being too damn serious.
 
redarrow said:
Am I the only one who thought MickeyD was just taking the mickey out of us and making a bad pun about sabmiller and liquid? .. you know, beer and all that..
Click to expand...

Sure I was practically rolling around on the floor laughing (mentally off course).
 
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