Wheelock Properties (Singapore)’s (“WPS”) 2Q18 results were above expectations with revenue falling 53.5% YoY to S$59.9m while net profit dropped 33.9% YoY to S$25.3m or 32% of our full-year forecast. In addition, WPS announced that the offer document has been dispatched last Friday.

For now, the consideration remains as S$2.10 in cash per WPS share and the offer will close at 5.30 p.m. on 7 September 2018 (or such later date(s) as may be announced from time to time by or on behalf of the offeror).

Given that WPS is currently trading above the offer price, we note that Wheelock & Co (20 HK) still has the option to revise its offer price upwards.

In light of the substantial gap between our fair value estimate of S$2.34 and the offer price, we encourage investors to REJECT THE OFFER. Yesterday’s closing price was S$2.19.

Source: OCBC Research - 14 Aug 2018