P/S - Are you here?Rowsley Limited
On May 2, 2007, Rowsley announced the acquisition of $2.7bio Chinese solar firm which will lead to a reverse takeover.
A few weeks later, the company presented a massive loss of $21.5mio the financial results for year ended Mar 31, 2007.
Eng Wah Organisation
Last week, Eng Wah announced it would be bought out by a Japanese biotechnology firm for $675mio which will lead to a reverse takeover.
In today's paper, Eng Wah and its Crazy Horse escapade reported a net loss of $10.6mio.
What is a reverse takeover?
On paper, I am buying you but actually you are cleaning me out. [Remember - substance over form.]
Did the losses in the respective company mentioned above signal to its management that their existing business is deep trouble? I guess Eng Wah had tried to do something about with Crazy Horse. I suspect that there is a huge sigh of relief (after months of emotional torture) when they finally decided to let the Crazy Horse go. An amazing $9.4mio of the $10.6mio loss reported is due to Crazy Horse.
Consequently, both companies are selling out of the final remaining asset ie. "Singapore-listed company status" to the Chinese and Japanese buyers.
P/S - I got no shares in both companies.
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