Corporate finance - Corporate Finance FNCE3000 Case study Introduction Royal Wolf Holdings Limited(ASX RWH is a listed company on the ASX dealing

Corporate finance - Corporate Finance FNCE3000 Case...

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Corporate Finance- FNCE3000 Case study
Introduction Royal Wolf Holdings Limited (ASX: RWH) is a listed company on the ASX dealing in commercial services and suppliers. 1 The company was incorporated in 1995. Royal Wolf Holdings Limited together with its subsidiaries concentrates itself in leasing, sale and modification of new and renovated shipping containers. The company commits itself to offer a wide range of shipping containers and portable building products to suit the need of customers. 2 The firm’s most notable subsidiaries as at 30 June 2015 are outlined below 3 : Subsidiary’s name Equity Holding Principal Activities Royal Wolf Trading Australia Pty Ltd 100% Sale and Hire Kookaburra Containers Pty Ltd 100% Dormant 1“Company Overview,” Royal Wolf Holdings Limited, 2 Ibid 1
Royal Wolf NZ Acquisition Co Ltd 100% New Zealand Parent Royal Wolf Trading New Zealand Ltd 100% Sale and Hire This report has been prepared to give an overview of Royal Wolf Holdings Limited, its shareholders, a risk-return analysis and the company cost of capital. 1 Shareholder Analysis Royal Wolf Holdings Limited is believed to be the largest container provider in Australia. Moreover the company is well-known for its competitive pricing scheme and offers a wide variety of products. 4 In other words, this helps the company to attract shareholders in order to increase their return. As the company is highly experienced and has a good management in this 3 “Annual Report Presentation,” Royal Wolf Holdings Limited, 4 “Company Overview,” Royal Wolf Holdings Limited, . 2
industry, risk is minimized thus increasing the company’s potential to attract domestic and foreign investors. The marginal investors are defined as the people who have a huge number of shares in a particular company. 5 They are usually engaged in regular trading that is they are buyers and sellers in the stock market. Marginal investors are often described as the one who establish stock price. This report analyses the marginal investors of Royal Wolf Holdings Limited by analysing the top twenty shareholders of the company. Appendix A below contains a table of the top twenty shareholders of Royal Wolf Holdings Limited as at 30 th June 2015. Based on the annual report of Royal Wolf in 2013, the company issued a total of 100,387,052 shares. 6 From the Appendix A, the major shareholder of Royal Wolf Holdings Limited is GFN 5 DamodaranAswath, Investment Valuation 166. 6 “Annual Report Presentation,” Royal Wolf Holdings Limited, . 3
U.S Australasia Holdings, INC which holds a total of 50% of issued shares. Since the company became a parent company to Royal Wolf in 2007, the majority investor is an insider 5.

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