CMA

CMA: to sell S$200m worth of bonds, comprising i) $100m 1% 1-yr bonds, ii) $100m 2.15% 3-yr bonds.
This could be a precursor to sizeable M&A coming up, as the new proceeds would effectively raise CMA’s total cash holdings to $1.6b, giving it a big enough war chest to pursue its stated target of $2b invmt in new projects this year...

Recall CMA’s underperformance was likely in part due to concerns about the inefficient use of its current $1.4b cash hoard (following the divestment of its 3 Msian assets to CMMT and Clarke Quay to CMT). Announcements of new projects/ developments may be a potential catalyst for share price re-rating.
Stock trades at 1.3x P/B. Street has a mix of Buy, Hold and Underperform ratings, with recent targets ranging btwn $2.15-2.65.