Pan United

Pan United: Phillip believes this is just the first step in MIIF’s strategic review. MIIF may soon also divest its 38% stake in Changshu Xinghua Port (CXP). This could be a key catalyst for Pan United, which owns 51.3% of CXP, and has first right of refusal to acquire the asset. Phillip believes Pan United has the balance sheet for an all cash deal, which would be EPS accretive of ~1ct (FY13e EPS: $0.087). Phillip has a Buy rating with TP $1.21.