HPH Trust

HPH Trust: Entered into strategic partnerships with COSCO Pacific and China Shipping Terminal Development Company through their 40% and 20% respective interest in subsidiary Asia Container Terminal Holdings, for an aggregate consideration of HK$2.5b. By selling off its 60% stake, HPH yields a disposal gain of approx HK$125m. The newly formed JV alliance would form a strategic relationship, allowing all 4 berths located at the COSCO-HIT Terminals and the Asia Container Terminals to be operated as one contiguous 1,380m long berth. This would allow the handling of multiple mega vessels. The proceeds are expected to support a 2014 DPU at least similar to 2013. HSBC upgrades to Neutral (from U/W) but with lower TP of US$0.62 from US$0.63, with the upgrade supported by higher dividend yield.