Singapore Stock Market News

Olam International - Liquidity concerns addressed

StockFanatic
Publish date: Tue, 04 Dec 2012, 10:03 AM
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Olam has announced a renounceable bond-cum-warrant rights issue that will raise up to US$1.25bn. The issue, underwritten by major shareholder Temasek, is a positive for bondholders but could be a mild negative for equity-holders due to potentially higher financing costs.

Temasek's vote of confidence could nevertheless boost sentiment for the stock. We keep our EPS and target price (based on 1x CY13 NAV) intact. Maintain Neutral. Even though the worst of the Muddy Waters saga is over, the stock lacks near-term re-rating catalysts.
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