Detailed Financial Impact
|
Before Acquisition |
After Acquisition |
| Aggregate cost of the Group’s quoted investments (S\$’000) |
314,547 |
319,582 |
| Aggregate cost as % of latest audited net tangible assets |
211.9% |
215.3% |
| Total market value of quoted investments (S\$’000) |
231,123 |
236,949 |
| Provision for diminution in value of quoted investments (S\$’000) |
– |
– |
Note: The latest audited consolidated net tangible assets of the Group as at 31 December 2024 is S\$148,431,000.
What Shareholders Must Know
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Significant Exposure: The Group’s aggregate cost of quoted investments now stands at 215.3% of its latest audited net tangible assets. This is a substantial exposure, indicating a heavy reliance on the performance of its investment portfolio.
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Potential Risk and Volatility: With such a large percentage of net tangible assets tied up in quoted securities, any significant market movement in these investments could have a material impact on the Group’s financial standing and, by extension, its share price.
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No Provision for Diminution: The Group has not made any provision for diminution in value of its quoted investments, suggesting management is confident in the current valuations or does not anticipate near-term losses. However, this could also mean higher risk if market conditions deteriorate.
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Active Portfolio Management: The acquisition and disposal activities indicate an active approach to managing the Group’s quoted securities portfolio, which could present both opportunities and risks for shareholders.
Potential Share Price Impact
The announcement reflects a significant financial maneuver that could influence investor sentiment and the share price of mDR Limited. Investors should closely monitor the performance of the Group’s quoted investments, as any substantial change in their value could directly affect the company’s overall financial health and market valuation.
Corporate Disclosure
The announcement was made in compliance with Rules 704(17)(b) and 704(18)(b) of the Singapore Exchange Mainboard Listing Manual, underscoring the materiality and price sensitivity of these changes.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice or a recommendation to buy or sell securities. Investors are advised to conduct their own due diligence or consult a professional financial advisor before making investment decisions related to mDR Limited.
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