SG: MARKET PULSE: Biosensors (25 Nov 2013)

Stock Name: Biosensors
Company Name: BIOSENSORS INT'L GROUP, LTD.

Research House: OCBC

Price Call: SELL

Target Price: 0.80

MARKET PULSE: Biosensors

25 Nov 2013

KEY IDEA Biosensors International Group: Sale by largest shareholder Summary: Shandong Weigao (SW), which is Biosensors International Group's (BIG) largest shareholder, announced that it has agreed to dispose its entire 21.7% stake in BIG to CB Medical Holdings Limited (CBMH) at a sale price of S$1.05 per share. According to a SGX-net filing, CBMH is part of CITIC Private Equity Funds Management, a large private equity fund in China. As SW will incur a loss of ~CNY449.0m from this transaction, we believe it also partly reflects the lack of confidence in BIG's prospects going forward. We do not foresee any impact from SW's sale on the operations of BIG. While we do not rule out the possibility of a privatisation exercise on BIG by CBMH in the future, we continue to value the stock based on our expectations of its operational performance. Hence, maintain SELL and S$0.80 fair value estimate on BIG. (Wong Teck Ching Andy)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.

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