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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