F&N: Announced that one of its 100%-owned subsidiary, FCL (China), is proposing to privatize its 56.17% owned HK-listed entity, Frasers Property (China). The proposed privatization will be undertaken jointly with Riverbook Group, a wholly-owned subsidiary of Ascendas Land.
Main assets of FPC include 157,610 sqm Vision Shenzhen Business Park and Shanshui Four Seasons in Shanghai with 737,000 sqm earmarked for residential/ commercial uses. DBSV believe the rationale is that current traded price does not reflect its value as FPC is trading at 43% discount to its NAV. Furthermore, FPC’s trading value is relatively low at HK$1m/ day.
Overall, house maintain Buy with $7.70 TP. Continue to see value in F&N as it is trading at 24% discount to RNAV, with the potential to progressively unlock value over the longer term. In the meantime, group earnings will benefit from the strong performance of its brewery unit, stable investment property earnings, coupled with $1.7b in unrecognized property development sales in SG.
No comments:
Post a Comment