Sunvic

Sunvic: Share price climbs steadily from $0.62 to $0.635 over the past week. Recall posting made on 9 Oct on Market Insight: Sunvic: ($0.62) Advancing as deadline for sale completion nears The counter has penetrated above its technical resistance at $0.58 amidst increasing volumes. The positive share price action could be indicative that Sunvic's long-awaited proposed sale of its Taixing production facilities to French chemical group Arkema for Rmb3.9b may be sealed soon. Recall, the sale was first announced in Jan this year, and was subsequently approved by shareholders at its EGM held in Jun. Under the deal terms, Sunvic will receive an initial payment of Rmb1.45b in exchange for the transfer of its 55% stake in the facilities to Arkema. This is expected to be completed within nine months from 23 Jan. The balance payment of Rmb2.45b for the remaining 45% stake will be carried out in subsequent stages by Dec ‘16. The proposed sale, if it materialises, would translate to an estimated gain of Rmb1.69b or Rmb3.16 ($0.654) per share for the group. Post disposal, Sunvic’s proforma Sep '13 NTA per share will rise from Rmb3.957 ($0.82) to Rmb7.118 ($1.47), which implies an attractive P/NTA of just ~0.42x.