UEM

UEM: CIMB upgrades UEM from Reduce to Hold, believing that the OCBC-GE plan to sell stakes in UEM and WBL will come true. If Charoen is the buyer, the house believes he is most likely attracted to the S$2b worth of investment properties. Based on historical transactions, he should be willing to pay 0.8-0.9x RNAV (~$2.54-2.85/share) for UEM, implying 3-16% upside from pre-trading halt price. If transaction fails to materialise, UEM is expected to de-rate to ~30% discount to RNAV (~$2.21)