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
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http://www.ocbcresearch.com/
2016-06-17
OCBC Securities
SGX Stock
Analyst Report
1.95
Same
1.95
