CSE Global

CSE Global: $10.3m gain on sale of stake in eBworx. Recall that Hitachi Limited’s takeover offer for eBworx has turned wholly unconditional effective yesterday after the former had received more than 85% acceptance. CSE Global will sell its entire 30.94% stake in eBworx for M$0.90/share and book a one-off divestment gain of $10.3m in 2Q12. The net consideration received of $21.4m will be used to repay its bank loan. OCBC note that while house like the latest development, think that investors will be more keen to see operational improvements in its core business. House adjust model for the transaction, but remain cautious and keep HOLD rating (and fair value estimate of $0.80) ahead of its 1Q12 results later this wk