Stock Name: Genting SP
Company Name: GENTING SINGAPORE PLC
Company Name: GENTING SINGAPORE PLC
| Research House: OCBC | Price Call: BUY | Target Price: 2.02 |
GENTING SINGAPORE 13 Apr 2012 |
| POSITIVE ON PERPETUAL SECURITIES - Improves balance sheet - Offers financial flexibility - Strong ability/incentive to redeem Genting Singapore (GS) is offering up to S$500m worth of perpetual subordinated capital securities for retail investors at 5.125% per annum; this following the very well-received issue of similar securities to institutional investors last month. While the securities are perpetual, we believe that GS has the ability to redeem them, given its strong cashflow generating business; it also has the incentive should the interest rate environment stays low. Meanwhile the presence of a dividend stopper feature should help allay fears of any potential deferment in interest payments. We are generally positive on the issuance as it will further boost GS's growing cash hoard for potential overseas investments, potentially via acquisitions or Greenfield projects in Japan or South Korea. As such, we maintain our BUY rating and S$2.02 fair value. |
No comments:
Post a Comment