United Envirotech

United Envirotech: OCBC downgrades stock to Hold rating with TP of $1.30 (from $1.36), after its recent disappointing FY14 results. OCBC expects to see several material changes post Memstar acquisition. The key would be the change in earnings contribution from associate level to the group’s topline. House expects to see a large dilution in shareholdings as 174m new shares will be issued to shareholders of Memstar. At the same time, KKR will also convert US$51.1m of its CBs to 136m shares; this will result in S$4.5m interest savings per year. UEL’s total share base would increase from 594m to 904m.