Wednesday, July 22, 2015


CWT: CWT is up 0.9% in today’s trading session as The Edge reports that controlling shareholders may be exploring a sale of their stakes in the logistics company.

According to its sources, CWT’s chairman, Loi Kai Meng, could be looking to sell his stake in the company. Loi currently owns an 18.21% direct stake in CWT as well as an additional 31.93% indirect stake in the company through C&P Holdings. Loi’s son, Loi Pok Yen, is CWT’s CEO and holds a 5.35% stake.

C&P is jointly owned by Loi as well as CWT director, Liao Chung Lik, and businessman Lim Soo Seng.

The magazine reported that the parties are working with investment banks to reach out to potential buyers in the next few months. Under the SGX’s listing manual, a purchase of the abovementioned stakes could trigger a general offer for the rest of CWT.

Given that CWT is currently trading at 1.7x P/B and 12.5x trailing P/E, there could be little scope for upside should a general offer come through.

Already, the counter is trading above the consensus target price of $2.05. The street has 2 Buy and 4 Hold calls on the counter.

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