SG: Rowsley Ltd - A scenario-based analysis of value

Publish date: Mon, 19 Aug 2013, 10:38 AM

SPECIAL SITUATION: ROWSLEY LTD

19 Aug 2013
A SCENARIO-BASED ANALYSIS OF VALUE

- Has SGX approval in-principle for proposed RTO
- Expect dispatch of circular and EGM ahead
- If deal succeeds, estimate value at S$0.67-S$0.85/ share


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. Management reports that it would dispatch a circular and convene an EGM to seek shareholder approval in due course. We note that, on 2 Aug 2013, management announced that "barring unforeseen circumstances, the deal should complete in the second half of 2013 after regulatory and shareholders' approval." In our research piece, we 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, we value each existing Rowsley share at approximately S$0.034 - its book value per share as at end Jun 2013. However, if the deal succeeds, we calculate from our analysis a value of S$0.67 to S$0.85 for each existing Rowsley share (before the 2-for-1 warrant issue ex-date). (Eli Lee)





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alex90gray

it is a good to see going chart up...

2013-08-19 16:01

albertlaw

nauhchop wrote:
The land that rowsley has under Peter lim is at medini iskandar area where not under restriction of 500k rm rule. However i am not sure whether rowsley land will also be exempted from 500k restriction. Nevertheless it is not a big concern because for developer margin in iskandar they will make money. Any news will still have to wait after capitaland launch their sales in iskandar danga area on govt cap and raising it to minimum 1mill rm. because malaysia also has land under kazahnah in singapore yet to be launched during the land exchange program for the railway

However a lot of buyers buy iskandar because agents are investors themselves and frying the iskandar dream on capital appreciation and rental. But there is no mnc there, no large commercial, so how to have a rental market when jb itself is full of cheap homes outside iskandar? 1000ringgit i can rent 1 beautiful semi d in jb. So i find it stupid that investors buy the notion that their properties can be easily rentable.

Capital appreciation is inflated by developers who want to sell their future launches higher, that is why ppl see a price increase which is determined by developer not market.

That is why currently developers will make money from iskandar and not property buyers in general.
Peter Lim good at milking from the market...so with the billions and billions of Rowsley shares including the billions of warrants that can be exercised into Rowsley shares,seems not worth to take the bonus of 2 free warrants for every 1 Rowsley shares held..anyway those Rowsley I bought are un the money ..will take some profits in case...
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dingbat
Senior
22-Aug-2013 08:43 About dingbat Contact Quote!

The multi-million question is when is the ex-date, or even the looming cum date... what are the critical dates investors should look out for... hope it's not another bubble busting yongnam.




Every 1 Rowsley shares 2 free warrants exercisable into Rowsley shares at $0.18 each...theoretically ( 47+18 x 2)/3 =27.7cts..don't forget billions & billion of new shares will be issued at 15cts to RSP Architects & Iskander ppties..so all these parties hve instant profit..more dilution when the warrants are exercised into mother shares..so call free is not free after all..after ex-all will likley drop below theoretical price..normally the case..fyi..trade with care..Peter Lim he will milk you and noy U to milk him..see the Raffles Town Club..claim a few thousand members..turned up 30000 members

2013-08-22 13:15

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