APAC Realty - CGS-CIMB Research 2022-04-25: Mandatory General Offer At S$0.57/share

APAC Realty - Mandatory General Offer At S$0.57/share

  • NHPEA Ace Realty Company (NHPEA), an entity controlled by Morgan Stanley Private Equity Asia (MSPEA), announced it has agreed to acquire 59.8% of APAC Realty (SGX:CLN) for S$129.5m (based on an offer price of S$0.57/share and inclusive of the rights to receive and retain the FY21 final dividend of S$0.04/share; book closure date: 29 Apr 2022).
  • The offer price of S$0.57 is at a 30.06% and 26.83% discount to APAC Realty's last traded and 1-month VWAP price. Based on the price of S$0.57, the transaction is valued at ~7x FY22F P/E multiple, based on our estimates (or ~8x based on Bloomberg consensus estimates). This is much lower than the 10x ex-cash P/E multiple of its nearest comparable peer PropNex (SGX:OYY), and also lower when compared to the 10-12x P/E multiple of other small-cap companies.
  • We keep our target price of S$0.93 for APAC Realty, based on an unchanged blend of net cash-adjusted P/E multiple and DCF valuation, pending more details from the offer document.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.

LOCK Mun Yee CGS-CIMB Research | https://www.cgs-cimb.com 2022-04-25
SGX Stock Analyst Report ADD MAINTAIN ADD 0.930 SAME 0.930

Previous report by CGS-CIMB:
2022-02-23 APAC Realty - Supported By High Dividend Yield

Relevant links:
APAC Realty Analyst Report,
APAC Realty Target Price,

APAC Realty Share Price History,
APAC Realty Announcements,
APAC Realty Dividends/ Corp Actions,
APAC Realty News Articles


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