Tat Hong Holdings - Books closure date on 16 Jan
- With regards to Tat Hong Holdings’ rights issue, note that the books closure date would be on 16 Jan 2017.
- Recall in Nov, Tat Hong announced that it will be undertaking a renounceable underwritten rights issue to raise ~S$41.1m in net proceeds through a 1 for 5 rights issue at S$0.33/share.
- Proceeds will be used for debt repayment and working capital purposes.
- Group CEO Mr Ng San Tiong and certain persons acting in concert with him, have provided irrevocable undertakings to subscribe for up to 77.6% of rights shares.
- Given the cloudy outlook for operations, we do not see a significant pick-up in the near future and efforts would likely continue to be focused on operational restructuring and cost containment.
- We have a HOLD rating and fair value of S$0.40 on the stock.