Company Name: FRASER AND NEAVE, LIMITED
| Research House: Nomura | Price Call: BUY | Target Price: 10.48 |
Nomura says the Independent Financial Adviser report on Fraser & Neave supports its view TCC Assets’ $8.88/share offer for the Singapore conglomerate is not attractive.
“In the absence of an alternative bid and if the TCC offer fails, F&N should look to further unlock value by distributing cash to shareholders from the APB sale. In could also distribute cash proceeds from the recent proposed sale of its 56% stake in Frasers China for $261 million. Other assets the group could look to monetize include Times Publishing, Fung Choi Media, PMP and Vietnam Dairy. As the group looks to unlock value and distributes proceeds back to shareholders, the share price should closer reflect its intrinsic value.”
It raises its target to $10.48 from $10.19 based on a higher valuation for the fund-management business, some assets not previously accounted for and a higher valuation for some listed investments. “The share price should re-rate higher.” It keeps a Buy call. The stock ends up 0.1% at $8.90.
No comments:
Post a Comment