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17-06-2011, 11:21 PM
Per today's (17Jun11) announcement, Metro has contracted to sell - under a conditional equity transfer framework agreement - its 50% interest in the retail complex Metro City Beijing for Rmb688.5 (approx. $132.0m) in cash.....
http://info.sgx.com/webcoranncatth.nsf/V...200425705/$file/divestmentmetrocitybeijing.pdf?openelement
When completed, this disposal will bring in new cash of approx. $132.0m and a gain of approx. $87.4m, to Metro.
As at 31Mar11, Metro had outstanding 651.56m issued shares (excluding 2.469m treasury shares) and 39.825m warrants (expiry: 22Sep11) convertible into new shares at $0.63/warrant. NAV/share stood at $1.554. Assuming all the warrants are converted into new shares soon, Metro's issued shares base will increase to 691.385m, and NAV/share will be revised downwards to $1.50.
Based on the enlarged issued share base of 691.385m shares, the disposal of Metro City Beijing, when completed, will have a huge $0.1264/share positive impact on Metro's EPS and NAV/share, on top of adding new cash of $0.1909/share.
I guess Mr Market should be enthusiastic about Metro and this event come Monday and most of next week, bearing in mind the still fresh attraction of the declared (a) total $0.03/share in Final+Special dividends, and (b) 1-for-5 bonus share issue, which will also be entitled to the total $0.03/share dividends.
http://info.sgx.com/webcoranncatth.nsf/V...200425705/$file/divestmentmetrocitybeijing.pdf?openelement
When completed, this disposal will bring in new cash of approx. $132.0m and a gain of approx. $87.4m, to Metro.
As at 31Mar11, Metro had outstanding 651.56m issued shares (excluding 2.469m treasury shares) and 39.825m warrants (expiry: 22Sep11) convertible into new shares at $0.63/warrant. NAV/share stood at $1.554. Assuming all the warrants are converted into new shares soon, Metro's issued shares base will increase to 691.385m, and NAV/share will be revised downwards to $1.50.
Based on the enlarged issued share base of 691.385m shares, the disposal of Metro City Beijing, when completed, will have a huge $0.1264/share positive impact on Metro's EPS and NAV/share, on top of adding new cash of $0.1909/share.
I guess Mr Market should be enthusiastic about Metro and this event come Monday and most of next week, bearing in mind the still fresh attraction of the declared (a) total $0.03/share in Final+Special dividends, and (b) 1-for-5 bonus share issue, which will also be entitled to the total $0.03/share dividends.