MCL Land/ HK Land

MCL Land/ HK Land: HKL makes cash exit offer for MCL at $2.45/sh, a 25.6% premium vs last traded at $1.95. This values MCL close to NAV/sh of US$1.80 (S$2.52). Offer will be conditional on approval by MCL sh/h, but is expected to go through given majority stake (77.4%) held by HKL. Malaysia’s Employees Provident Fund (which owns a 4.7% stake) has also undertaken to vote in favour of the delisting…

Full privatization of MCL looks likely, as only another 7.8% of share acceptances needed to trigger the 90% threshold for compulsory acquisition.
HKL cited MCL's small free float, low trading liquidity and the compliance costs of maintaining a listing as main reasons for delisitng. Says acquiring MCL will give it greater operational flexibility in managing its residential property development activities in the region…

While offer price is 10% below $2.76 target price, KE still views the exit offer as attractive, given lack of liquidity for the counter.
Tips 2 other counters likely to see spillover interest, given their possibility as take over candidates due to their P/NAV discounts and the relatively big stakes held by the major shareholders.

Wheelock ($1.82 price vs $2.12 NAV/sh),
Orchard Parade Hotel ($1.12 price vs $2.44 NAV/sh).