TEE International

TEE International: Announced recently (22 Feb) that it would inject $16m worth of its property assets into wholly owned subsidiary TEE Land, as part of its plans to spin off its real estate business and list it separately on SGX by May. Certain pre-IPO investors have also agreed to invest $4m in TEE Land when the restructuring is complete. OCBC note that although TEE’s share price has declined in recent days, expect its share price to remain supported in the near term by expectations of a special dividend if its plan succeeds. Still, prefer to remain cautious on TEE until housesee stronger contributions from its real estate business, after its weak 2Q13 results. Maintain TP of $0.30 and HOLD rating for TEE.