MCT - MNACT Proposed Merger New Option - Full Cash

I have previously written about the proposed merger between Mapletree Commercial Trust (MCT) and Mapletree North Asia Commercial Trust (MNACT) here.

In that post I also included some calculations to gauge which was the best option for me based on the original two options offered by MCT namely

 

Option 1: Cash + Scrip

 

Option 2: 100% Scrip

 

At that point of writing, option 1 was the best for me as it offered the highest cash value then.

 

Today, a third option has been given to MNACT unitholders which is

Option 3: 100% Cash

More details can be found here.

With option 3, MNACT unitholders can receive $1.1949 for each MNACT unit he or she possesses.

This is clearly the best option for me right now. Based on my holdings of 4,000 units of MNACT and the current MCT share price of $1.88, the return in terms of cash value for the three options are as follows.

Option 1: $4,531.57

Option 2: $4,484.18

Option 3: $4,779.60

Option 3 would give me a return of around 27.5% including dividends collected over the years. Not too bad I would say.

For now my plan is to monitor the share price of MNACT closely for the next couple of months. If the open market price goes above $1.1949 I would likely offload my MNACT units in the open market.

At current point of writing, MNACT is trading at $1.18 and testing $1.19.

MCT is trading at $1.88 after opening at $1.95.

Feb 2022 Update

Feb 2022

 

Local Portfolio Value after market close (excluding USD and HKD)

S$139,845.54

Purchase

 

PYPL

Sold

AAPL

Dividends

 

None

Short-Term Transactions

 

Sold 3 x SE Put 220520 at $115 strike with $0.60 premium. Closed early at $4.55.

  

Sold 1 x SE Call 220304 at $180 strike with $1.28 premium.

 

Sold 1 x SE Call 220325 at $180 strike with $1.28 premium.

 

Summary

SGD portfolio:

  

Portfolio value remains around the same as last month's, surprisingly. Thought it would take further beating. Market remains very volatile though.

Continue to monitor closely for some additions to the portfolio. Eyeing CLCT and MIT currently.

Syfe Core Growth portfolio:

 

Still seeing slight negative returns for this month. Looks like this robo advisor is not as good as it seems.

USD / HKD portfolio: 

 

Continue to add small position in PYPL and took some profit off AAPL. 

 

Made a loss in my overall option positions in February due to a mistake.

 

The 3 contracts that I sold for SE went into the money for a period and I decided to close them early to cut loss which turned out to be a bad mistake as the share price went up after I closed the positions.

 

Hopefully March will be a better month.

 

I have also switched from a long to a short position in the market as the Ukraine-Russia war situation continue to evolve.