DELFI LIMITED
P34.SI
Delfi Ltd - Proposed disposal of interest in PT Ceres Meiji Indotama
- Delfi has entered into a conditional sale and purchase agreement with Meiji Co., Ltd (purchaser) and Meiji Seika (Singapore) to sell 50% of shareholding interest in PT Ceres Meiji Indotama (CMI).
- CMI was incorporated pursuant to a JV agreement in Dec 2000 to engage in manufacturing and sale of confectionery products in Indonesia. Under an extensive review, Delfi believes CMI is best suited to continue growing under the stewardship of Meiji, hence discussions between the parties have led to a mutual and amicable agreement to terminate the JV.
- The proposed disposal’s total consideration is US$8.3m, and Delfi will recognize a gain of ~US$4.9m.
- Exiting the JV will also allow Delfi to re-deploy its resources to focus on growing their core business.
- We maintain our HOLD rating and S$2.37 fair value estimate on the stock.
Jodie Foo
OCBC Investment
|
http://www.ocbcresearch.com/
2017-03-17
OCBC Investment
SGX Stock
Analyst Report
2.370
Same
2.370
