Arbitrage opportunity – Millennium Beer
I had an eye on it for the past one year, was waiting for it to come out of BIFR. This isn’t going to become a multibagger anymore, as proposal is to amalgamate Millennium Beer with United Breweries. Amalgamation may take few weeks/months.
This is only for those of you who are holding on to United Breweries and consider it as a good investment, or those who consider United Breweries to stay over 360. Its better to sell all your United Breweries shares today in exchange for Millennium Beer shares. Swap ratio agreed is 1 : 12. Twelve shares of Millennium Beer cost 360 Rs and United Breweries share is trading @ 420, down from 480 a few weeks back. A quick 20 – 30% gain can be made in less than few months.
Disclosure: Not invested in either, dont like United Breweries.