Memstar

Memstar: Will go ex on 28 Mar for its distribution-in-specie and capital reduction, subject to no objection from its creditors before 26 Mar. An investor with 1,000 shares in Memstar will receive 75 shares of United Envirotech (UEL), as well as 2.8¢/share from the capital reduction, which works out to $0.14/share based on UEL's current price of $1.49. Meanwhile, Asdew Acquisitions- spearheaded by local renowned investor Alan Wang, has been raising his stakes from 5.35% to the current 11.11% since Jan '14. We do not rule out the possibility of a reverse takeover (RTO) deal in future, given that Memstar's listed shell status subsequent to the distribution makes it an ideal M&A target. As a rule of thumb, listed shell entities generally command a market premium of ~$15-20m, translating to 0.6¢-0.8¢/share.