Shares of Singapore’s Rowsley surged as much as 31% on Monday after the oil recycling and renewable energy firm said it agreed to sell shares and warrants in UPP Holdingsfor $22.1 million.
By 9:16 a.m., Rowsley shares were up 27.5%, outperforming the broader Straits Times Index, which was 0.1% higher. UPP shares were 4.6% higher.
“Both the stocks are up because Rowsley will have the cash proceeds from the sale, while for UPP the sale means that they will have a new big shareholder,” a local trader said.
UPP provides management services and trades paper products.
Rowsley’s subsidiary SSP Innovations agreed to sell 108.1 million shares in UPP to Singapore broker UOB Kay Hian Private -- amounting to 18.56% of UPP’s issued share capital -- at $0.17 each.
Rowsley also disposed of 53.6 million warrants due in March 2013 issued by UPP at $0.07 apiece.
The disposal is expected to raise Rowsley’s basic earnings per share and net tangible asset per share, it said in a stock filing.
No comments:
Post a Comment