Shares & Derivatives
What are the Olam nil paid rights (NPRs) worth ?
By Kevin Scully-Financial Blog  •  January 9, 2013
What are the Olam nil paid rights (NPRs) worth ? Wednesday, 9 January, 2013  3:9 PM
Posted by Kevin Scully

I received a telephone call from an old friend today asking me about how to price the Olam NPRs.   I said that I hadn’t done any work on this but would do a “quick and dirty” calculation which I thought I would share with our subscribers.  This analysis assumes that the fair value of Olam is its current price in Case 1 and the UBS price in Case 2. 

I don’t have a view on what Olam shares are worth but UBS according to Reuters has issued a report today on Olam downgrading the stock to a SELL with a price target of S$1.33 from S$2.95.

 

Rights Issue Terms

313 bonds of US$1.00 each with 162 warrants for every 1000 Olam shares held ...

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By Kevin Scully-Financial Blog
Kevin began his working life in the regional and economics division of the Ministry of Foreign Affairs. He then moved to the private sector analyzing equities before venturing out to start NRA Capital. After 25 years of watching stocks and living through financial disarray during the Pan Electric Crisis, the 1987 Crash, the Barings debacle, the Gulf War, Asian financial crisis - what can sub-prime do but add another scar to already bruised wounds. Ever since starting his blog, Kevin has been enthusiastically giving his personal views on the market. He discusses about equities, the market turmoil, and the broad economy.
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