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