Yanlord

Yanlord: Shares +3.4% to $1.23 following SGX anncmt that Marua Sitoros, a director of Wilmar has raised his stake to 5.1%. However, pls note that this is the same block of shares jointly owned by Kuok Khoon Hong, Wee Ee Chao and Peter Lim under the same vehicle Terzetto Capital. Hence, it is considered a deemed interest held jointly by all 4 personalities, not separate holdings.

An impending takeover seems quite unlikely as founder and major shareholder Shen Jian Zhong still holds a 66% stake in the property company. However, we do not rule out other corporate M&As or tie-ups involving Yanlord and the Kuok group in future projects given its rather high net gearing ratio of 0.83x, coupled with the deep pockets of the Kuok group. Another possibility is for Shen to pare down his holdings to 51%, giving Kuok and his associates a sizeable 22% stake in the company. At $1.23, Yanlord trades at a 13% discount to its NAV of $1.42. Street RNAV estimates range from $1.79-3.00.