QAF - OCBC Investment 2017-05-08: Strategic Review of Primary Production Business To Enhance Shareholder Value

QAF - OCBC Investment 2017-05-08: Strategic review of primary production business to enhance shareholder value QAF LTD Q01.SI

QAF - Strategic review of primary production business to enhance shareholder value

  • QAF announced last Friday evening that it is conducting a strategic review of its options to enhance shareholders’ value in relation to the group's primary production business based in Australia. This may include a listing of the business or a sale in its entirety. 
  • Preparatory work has commenced, while SGX has also confirmed that the proposed listing of the primary production business is not considered a chain listing. 
  • Note that the strategic review is in its preliminary stages and there is no assurance that the proposed listing or sale may materialise.
  • Recall that the group mentioned conducting strategic reviews of this business in its FY16 results. Post FY16 results, we had downgraded the stock from buy to a HOLD with FV estimate of S$1.46, as we see potential cost pressures on profitability in the near term. 
  • Nonetheless, we remain positive on the company for the longer term, given the formation of an executive committee, meaningful expansion plans, and potential strategic initiatives that are aimed to enhance shareholder value.




Jodie Foo OCBC Investment | http://www.ocbcresearch.com/ 2017-05-08
OCBC Investment SGX Stock Analyst Report HOLD Maintain HOLD 1.460 Same 1.460



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