The takeover offer by Exxaro for African Iron Limited (AKI AU Equity) has gone unconditional since 14th February 2012. The current level of acceptance is roughly 65%.
The offer price is $0.51. If the deal gets to an acceptance level of 75%, the offer price will be increased to $0.57. The current share price is $0.56. As the deal is unconditional, payment will be made within 14-days.
A few of my friends has pointed this deal out to me, where one can earn roughly 1.7% returns in 14-days. That translates to a 17% annualised return. However bear in mind that the offer closes on 4pm Perth Time 28th-February-2012. This is only just 3 trading days away. I would be hesitant to invest at current levels.
The downside is $0.05 (if they fail to get to 75% acceptance ) versus an upside of $0.01 with just 3 trading days to go. I am pretty sure they will get to the 75% acceptance but sometimes bizarre things do happen.
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