Stock Name: CSE Global
Company Name: CSE GLOBAL LTD
Company Name: CSE GLOBAL LTD
| Research House: OCBC | Price Call: HOLD | Target Price: 0.80 |
CSE GLOBAL LTD 10 Apr 2012 |
| SALE OF STAKE IN EBWORX - Accepts offer from Hitachi - Priced at M$0.90 or 15.7x FY11 EPS - S$21.5m in cash proceeds if deal passes Last week, CSE Global (CSE) accepted an offer from Hitachi Ltd for all its 59,789,000 shares (30.94% stake) in Malaysia-listed financial solutions provider eBworx Berhad (eBworx). This follows a voluntary general offer from Hitachi's bankers, in Mar 12, to acquire all the outstanding ordinary shares for a cash offer of M$0.90. If Hitachi's acquisition of eBworx goes according to plan, CSE would receive about S$21.5m in cash in exchange for its stake in eBworx. The proposed transaction is not expected to have any material impact on CSE's consolidated net tangible assets per share or earnings per share for FY12. As we believe that there are little synergies between the two companies, the sale should help CSE unlock shareholder value and redeploy capital to its core businesses. Pending further clarity on the situation, we maintain our HOLD rating with S$0.80 fair value estimate. |
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