In today’s briefing:
- ESR-Logos REIT Placement – Implied Yield Attractive Enough to Take the Deal
- Keppel (KEP SP): Keppel O&M/Sembcorp Marine Transaction Moves Towards Completion
ESR-Logos REIT Placement – Implied Yield Attractive Enough to Take the Deal
- ESR-LOGOS REIT (EREIT SP) is looking to raise US$114m (S$150m) in a private placement. The proceeds will be used to fund potential acquisitions and finance the redevelopment of its properties.
- Post offering, there will also be a US$114m (S$150m) non-renounceable preferential offering, which will bring the total gross proceeds of the equity fund raising to US$228m (S$300m).
- The deal is a relatively large one to digest at 46 days of ADV and 6.4% of current mcap. We’ll talk about the deal dynamics.
Keppel (KEP SP): Keppel O&M/Sembcorp Marine Transaction Moves Towards Completion
- Sembcorp Marine (SMM SP) shareholders voted overwhelmingly for the merger between Keppel O&M and Sembcorp Marine. The transaction is expected to close by 28 February.
- The divestment of Keppel O&M will further move Keppel Corp (KEP SP) towards a more asset-light and recurring earnings model, providing a helpful tailwind to hit its 15% ROE target.
- Pre-Dividend in specie distribution, our Keppel SoTP valuation based on Sembcorp Marine’s reference issue price (S$0.122) and last close (S$0.136) is S$8.49 and S$8.72 per share, respectively.
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