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CWT Ltd - OCBC Investment 2016-06-17: Exclusive talks with HNA still ongoing

CWT Ltd - OCBC Investment 2016-06-17: Exclusive talks with HNA still ongoing CWT LIMITED C14.SI 

CWT Limited: Exclusive talks with HNA still ongoing

  • CWT Limited (CWT) yesterday announced that the negotiations between its controlling shareholder, C&P Holdings (C&P), and HNA Group (HNA) in relation to a potential transaction with respect to HNA acquiring C&P’s 31.9% stake in CWT are still ongoing. 
  • The purchase of C&P’s entire 31.9% stake in CWT will trigger a mandatory general offer for all the remaining shares of CWT, and may lead to a potential privatization of CWT
  • We previously highlighted that CWT’s share price spiked to as high as S$2.37 when the news of C&P looking to divest its stake in CWT was first reported back in Jul-15. However, note that there is no assurance that such negotiations will result in any definitive agreement or transaction. 
  • 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$1.95.




Eugene Chua OCBC Securities | http://www.ocbcresearch.com/ 2016-06-17
OCBC Securities SGX Stock Analyst Report HOLD Maintain HOLD 1.95 Same 1.95


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