CSE Global is likely to return most of the proceeds, which our analyst estimates to be 26-28 Scts DPS, from the divestment of its UK business. The UK business (~33% of group profit) can fetch higher PE than CSE itself, thus unlocking value for its shareholders. We estimate that CSE will take three years to recover the earnings gap due to divestment of UK business. Our TP of S$1.07 ((Prev. S$0.97) implies potential returns of 28%. Maintain BUY. A successful IPO could lead to a re-rating of the stock.

Tiger Airways has upped its shareholding in the capital of Indonesia's PT Mandala Airlines from 33% to 35.8%. Tiger became a shareholder of Mandala early last year when it acquired a one-third stake for a nominal amount of US$1, but committed itself to re-fleeting the Indonesian carrier with its own A320 planes and providing technical and management expertise to the once-troubled carrier. Tiger's partner at Mandala is Indonesian conglomerate Saratoga Investment Corp, which took over 51% of the airline.

Sound Global is proposing to delist from SGX. The exit offer will be made at S$0.70 in cash for each Offer Share. The offeror does not intend to increase the exit offer price. The company will continue to maintain its primary listing of the shares on the SEHK. Sound Global will also be making an offer for the outstanding RMB600m principal amount of bonds.

Amara Holdingsmay sell hospitality assets as a real estate investment trust (Reit). Amara is considering putting its 27-year-old Amara Singapore Hotel, along with the adjacent 100 AM shopping mall and Amara Sanctuary Resort Sentosa into a Reit and selling the assets in an initial public offering (IPO), according to a person with knowledge of the matter. The IPO could take place next year.

GRP is proposing a renounceable non-underwritten rights cum warrants issue of up to 418.2m new shares at an issue price of S$0.08 for each Rights Share, with up to 418.2m free detachable warrants. Each Warrant carries the right to subscribe for one (1) new share at an exercise price of S$0.08 per share, on the basis of three (3) Rights Shares for every one (1) existing share held.

See Hup Sengannounced that it is in discussions in relation to possible transactions involving the issue of shares in the company and acquisition of business.

In property news, the response to last week's launches of The Glades in Tanah Merah and The Skywoods in the Dairy Farm area shows that the new loan curbs have affected private home sales. Not only were sales relatively weak but they also seemed to have stalled after the first day of booking. Keppel Land said that it had sold around 80 units at 99-year-leasehold The Glades, next to Tanah Merah MRT Station, at average price of $1,450-1,500 psf. The bulk of the sales are understood to have been done on the first day, Friday. Meanwhile, the consortium developing The Skywoods, also a 99-year project, sold 35 units last Friday, followed by 10 units on Saturday and Sunday combined. Its average price for the first 150 units released in the 420-unit project is $1,250 psf.

China's inflation slowed to 2.6% y-o-y in August, slightly lower than July's 2.7%. In the first eight months of the year, the CPI rose 2.5% y-o-y, below both the government's 3.5% target for 2013 and a touch below the 2.6% seen in 2012. China's producer price index (PPI), which measures prices of goods at the factory gate, rose 0.1% in August from July. It was the first increase in six months and came after five months of deflation. The PPI fell 1.6% y-o-y in August, up from a 2.3% decrease in July and the highest reading in six months.

US stocks rose reacting to positive China August export numbers (actual 7.2%, consensus 5.5%). Corporate acquisitions also underpinned optimism while Apple shares gained ahead of the unveiling of new iPhone models. In Asia, eyes will be on the release of China's August industrial production, fixed asset investments and retail sales.

Source: DBSV