CWT Limited - OCBC Investment 2016-10-26: HNA bid said to be delayed

CWT Limited - OCBC Investment 2016-10-26: HNA bid said to be delayed CWT LIMITED C14.SI

CWT Limited - HNA bid said to be delayed

  • According to a Bloomberg report last evening, HNA Group Co.’s (HNA) potential bid for CWT Limited (CWT) has been delayed as HNA weighs on the deal structure. 
  • HNA has been in exclusive talks with CWT’s biggest shareholder, C&P Holdings (C&P), since May and is reported to be still deciding which of its entities will be used to make the offer. 
  • Bloomberg also reported that both parties continue to be engaged in discussions and still hope to announce a transaction by the end of the year. 
  • Recall that the purchase of C&P’s entire ~32% stake in CWT will trigger a mandatory general offer for all remaining shares of CWT, which may lead to a potential privatization of CWT. Again, we would like to point out that CWT has said that there is no assurance that the ongoing negotiations will result in any definitive agreement. 
  • Given the lack of concrete details, it is best to wait for official announcement on the terms of any potential deal, if it does materialize. 
  • We currently have a HOLD rating on CWT with fair value estimate of S$1.93.




Eugene Chua OCBC Investment | http://www.ocbcresearch.com/ 2016-10-26
OCBC Investment SGX Stock Analyst Report HOLD Maintain HOLD 1.93 Same 1.930



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