Singapore Stock Market News

Keppel Land - Accept the offer

StockFanatic
Publish date: Mon, 26 Jan 2015, 08:50 AM
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Keppel Corp's (KEP) offer price of S$4.38/4.60 for Keppel Land's (KPLD) remaining stake looks fair to us, as it equates to a 25.3%/21.3% discount to our RNAV estimate, lower than the historical mean of 26%. Further, given the residential headwinds, we think KPLD's RNAV discount is unlikely to narrow significantly in the near term in the absence of this transaction. We think the sector will re-rate in the near term, with investors scouting for prospective privatization candidates. Our top developer picks are GLP and CAPL.
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