SCOMI-LR worth to subscribe?

I think not worth it. At 0.025 cents of LR, you still need to pay 10 cents for it.

And conversion price is 40 cents, in the end add up will be 52.5 cents.

Might as well buy the mother share at 50 cents now.


SCOMI GROUP BHD (SGB OR COMPANY)
RENOUNCEABLE RIGHTS ISSUE OF UP TO RM164,863,605 NOMINAL VALUE OF THREE
(3)-YEAR 4% IRREDEEMABLE CONVERTIBLE SECURED LOAN STOCKS (ICSLS) AT 100% OF ITS
NOMINAL VALUE TOGETHER WITH UP TO 219,818,140 FREE DETACHABLE WARRANTS
(WARRANTS) ON THE BASIS OF FIFTEEN (15) RM0.10 NOMINAL VALUE OF ICSLS TOGETHER WITH TWO (2) FREE WARRANTS FOR EVERY TEN (10) ORDINARY SHARES OF RM0.10 EACH IN SCOMI GROUP BHD (SGB) (SGB SHARES) HELD (RIGHTS ISSUE)
We refer to the announcements dated 13 August 2009 and 27 August 2009 in
relation to the Rights Issue.
On behalf of the Board of Directors of SGB (Board), CIMB Investment Bank Berhad
(CIMB) wishes to announce that:
(i) the conversion price of the ICSLS has been fixed at RM0.40, which is at a
30% discount to the five (5)-day volume weighted average price (VWAP) of RM0.57
per SGB Share up to 30 October 2009, being the last trading day prior to the
price-fixing date for the conversion price of the ICSLS.
The conversion price of the ICSLS of RM0.40 was determined by the Board after
taking into consideration various factors, inter-alia, the coupon rate of the
ICSLS, the Warrants attached together with the ICSLS at no cost, the
theoretical valuation of the ICSLS, the historical share price movement of SGB
Shares and the prevailing market conditions; and
(ii) the exercise price of the Warrants has been fixed at RM0.40, which is at
30% discount to the five (5)-day VWAP of RM0.57 per SGB Share up to 30 October
2009, being the last trading day prior to the price-fixing date for the
exercise price of the Warrants.
The exercise price of the Warrants of RM0.40 was determined by the Board after
taking into consideration various factors, inter-alia, the theoretical
valuation of the Warrants, the historical share price movement of SGB Shares
and the prevailing market conditions.
On behalf of the Board, CIMB also wishes to announce that SGB had on 2 November
2009 executed the following:
(i) the Trust Deed constituting the ICSLS, together with the relevant security
documentation;
(ii) the Deed Poll constituting the Warrants; an
(iii) the underwriting agreement with CIMB and OSK Investment Bank Berhad to
severally but not jointly underwrite RM120,000,000 nominal value of ICSLS,
representing 72.79% of the maximum nominal value of ICSLS to be issued under
the Rights Issue.
This announcement is dated 2 November 2009.

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