Monday, August 19, 2013

Rowsley

Rowsley: OCBC has a special situations report on counter. Note that last Thursday, Rowsley received the approval in-principle from SGX for its proposed acquisitions of RSP Group and the Vantage Bay site in Iskandar, and a 2-for-1 bonus issue of warrants. Mgt reports that it would dispatch a circular and convene an EGM to seek shareholder approval in due course. OCBC carry out an analysis of Rowsley’s value under a successful RTO scenario, and also under a failed RTO scenario. If Rowsley’s proposed deal fails, house value each existing Rowsley share at approximately $0.034 – its book value per share as at end Jun 2013. However, if the deal succeeds, calculate from our analysis a value of $0.67 to $0.85 for each existing Rowsley share (before the 2-for-1 warrant issue ex-date).

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