Viking O&M

Viking O&M announced that it has sold 20m shares in Tung Lok Restaurants and 10.3m shares in Old Chang Kee to Goodview Properties for a total consideration of S$6.99m in cash. According to mgtm, the sales proceeds will mainly be used for potential M&As and repayment of existing loans. Consequently, Viking will record a net gain S$2.93m from the stake sale. Based on our ball-park estimates, the stock trades at about 8x FY10 P/E (including the gains on disposal).