OUE

OUE: CIMB Maintains O/p with $3.01 TP. Note that Golden Concord Asia (GCAL), controlling shareholder of OUE, announced that it will be closing its share-financing transaction with Credit Suisse, started in Jan 11. With immediate unwinding of position, GCAL shall acquire remaining 13m OUE shares (1.32% of OUE’s issued capital) from Credit Suisse and relinquish the right of return of the whole lot of 53.3m OUE shares.

Add that deal had caused much confusion in mkt and now the overhang on OUE’s stock would be lifted. GCAL says it has not entered into other derivative transactions in relation to OUE shares. OUE shares are now on trading halt, but expect its share price to react positively once the halt is lifted. Continue to expect catalysts from higher achieved rents and RevPAR, and more acquisitions.