Tat hong

Tat hong: Entered into sale and leasback agreement with TranslinQ Income Pty for 5 properties, to monetize its properties and to redeploy cash for better use. The consideration to be received is A$30.m. Expected interest cost savings is ~A$1.7m, while depreciation is expected to fall by ~A$0.4m. Separately, Tat Hong will also divest its 70% interest in Hup Hin Transport for $20.6m OCBC reckons these are part of Tat Hong’s asset light strategy and will allow the company to refocus in the face of weaker Australian mining sector. OCBC maintains Hold on Tat Hong with a TP of $0.89