FNN

FNN: mgt proposed a $4.7b ($3.28/sh, 37% of market cap) capital reduction via cash payout to sh/h, larger than the $4b offer previously proposed, and represents nearly the entire gain from the divestment of APB. This effectively removes the uncertainty over capital deployment. Separately, FNN announced firm core 2Q13 results. Revenue at $912.5m, +17% yoy. Headline net profit at $47.1m, -45% yoy. But excluding expenses related to the general offers ($72m), Deustche notes, adjusted net profit from continuing operations rose 53% yoy to $103m. FNN’s consumer divisions continued to perform well as beverage revenues rose 10% on higher volumes and breweries growth in Myanmar. Meanwhile, property development PATMI rose 55% from progressive profit recognition. Deutsche expects completions at FNN’s Central Park project should boost earnings in 2H13. The house revises SOTP to $11.57 from $11.43, reflecting the mark to market of listed subsidiaries. Raises TP accordingly to $9.83 (from $9.72) pegged to an unchg 15% discount to SOTP. But maintains Hold rating, citing strategic direction and free float restoration as overhang. Separately CIMB keeps at Outperform with TP $10.03.