Citigroup raised its target price for warehouse operator
Global Logistic Properties Ltd to S$3.24 from S$2.99
and kept its 'buy' rating, on expectations its expansion into
Brazil will boost its property value.
By 0307 GMT, GLP shares were down 3.9 percent at S$2.49, but
have risen 41.9 percent since the start of the year, compared to
the Straits Times Index's 11.2 percent rise.
GLP said on Wednesday it was teaming up with large
institutional investors to buy $1.4 billion worth of assets in
The warehouse operator now has market leading positions for
logistic facilities in Brazil, China and Japan, Citi said,
adding that its acquisition of Brazil assets is expected to
enhance its net asset value by 8 percent.
"We believe GLP's acquisitions of Brazil logistics
properties should mark its first step to become a real global
player," said Citi in a note.
The brokerage added that GLP continues to see strong
operations in China as it expanded into two new cities Changsha
and Changchun in the second quarter, and its fund management
operation is another growth engine for the company.
1115 (0315 GMT)
(Reporting by Charmian Kok in Singapore; Editing by Anand Basu;
10:57 STOCKS NEWS SINGAPORE-OUE up, to benefit if F&N bid
Overseas Union Enterprise Ltd jumped as much as
5.5 percent on expectations its property business will benefit
if its consortium's bid for Fraser and Neave is
A consortium led by OUE launched on Thursday a S$13.1
billion bid for F&N, trumping a takeover offer from firms linked
to Thailand's third-richest man.
By 0241 GMT, OUE shares were up 4.3 percent at S$2.65, with
787,000 shares traded, 1.3 times its average daily volume over
the last five sessions. F&N shares gained 2 percent to S$9.31,
rising above the consortium's offer of S$9.08, and was the most
actively traded stock by value.
"Should OUE win the bid, this is an immediate accretion to
its book and restated net asset value will be lifted by 22
percent," said Religare Institutional Research in a note.
The consortium's offer of S$9.08 per share for F&N reflects
a 30 percent discount to its property book value, Religare said,
adding that to value F&N's property assets at book value, OUE
could bid up to S$10.30 a share.
Religare said the break-up value for F&N's business is much
higher than the Thais' offer of S$8.88 or the consortium's
OUE shares are up 26 percent so far this year.
1038 (0238 GMT)