but what about the money?
Q When will investors get their refund cheques?
A Refund cheques for the part of the application that was unsuccessful were sent out on Wednesday. If the Link Reit does not list, cheques for the rest of the money will be sent no later than Tuesday.
Q Will those who were allotted shares receive what they were promised if the listing proceeds at a later date? Or will a new allotment process be organised?
A If the listing doesn't go ahead on Monday, the process will start all over again with a new prospectus. Investors will have to apply again and there are no guarantees they will get the same amount they were allocated originally.
Q More than 56 per cent of the units in the reit are available to retail investors, who subscribed for shares valued at $280 billion. How much do investors who borrowed to subscribe for the share deal stand to lose in interest charges?
A Retail investors will pay an estimated $112 million interest for margin financing, assuming 70 per cent of the value of the shares applied for was funded by borrowing. If 90 per cent was borrowed, interest would be around $140 million.
Q Could investors sue the Housing Authority or sponsors to make good their losses?
A No. The prospectus says the underwriters can terminate the offer if there is any change in the interpretation of laws or regulations by any court in Hong Kong at any time prior to 8am on the day of listing.
Q Does the authority have to pay the sponsors and underwriters even if the deal is pulled? If so, how much?
A If the listing does not go ahead, the banks would likely not get paid, as they are normally paid from the proceeds, but they may be reimbursed their costs. If the listing is relaunched, however, they would eventually get the 1.75 per cent underwriters' commission. The authority still has to pay legal, financial advisory and auditing fees, and printing and other costs.
Q How has the court case affected market sentiment?
A The stock market has been under pressure in the past two days, and some analysts and brokers warn international funds may start to sell Hong Kong equities if the deal is pulled. That could trigger an outflow of foreign money, they say.
Q How will this affect the upcoming privatisation of the Airport Authority and the merger of the MTR Corporation and the Kowloon-Canton Railway Corporation?
A The government will most likely decide to seek Legislative Council approval for future privatisations, and may consult the public, making the process more drawn out. Financial advisers and banks involved in deals may demand higher fees.
