Gems TV

Gems TV: On its proposed RTO, this would potentially transform the company's into a trading business, which deals in basmati and non-basmati varieties of rice, cocoa beans, soya beans, cloves and other agricultural products. Base on the acquisition price of $571.4m, Gems TV will be acquiring the trading business at 18.8x FYMar13 P/E, hardly cheap, compared to closest peer Olam's trailing P/E of 10.2x. Meanwhile, Gems TV will dispose its existing business at an indicative price of US$4.6m, based on a independent valuation. On a proforma basis, Gems TV will have a EPS of US$0.01, compared to its loss per share of US$0.33 which the company recorded for FYJun13. NTA per share post acquistion and disposal would be $0.0746, compared to the current share price of $0.03.