Broker's take: Phillip maintains 'reject' call on Cogent privatisation bid after Q3 results
PHILLIP Capital is maintaining its advice that investors "reject" Cosco Shipping International's privatisation bid for logistics service provider Cogent Holdings after Cogent announced on Monday its earnings for the third quarter.
Cosco first announced its intention to privatise Cogent on Nov 3 at S$1.02 a share - 10 per cent lower than Phillip's valuation of S$1.12 - before issuing a formal offer on Nov 24.
Phillip analyst Richard Leow said: "Our recommendation remains unchanged - minority shareholders should take partial profit to avoid tying up capital while the offer remains open and to reject the offer."
The remaining capital invested in Cogent will resemble a call option, the broker said.
If the delisting is successful, minority shareholders will receive S$1.02 per share owned, but will still remain shareholders of Cogent - a listed-subsidiary of Cosco, if the delisting fails, the broker added.
Cogent's minority shareholders will have until 5.30pm on Jan 5 to accept the offer.
Cogent shares were trading flat at S$1.010 as at 3.06pm on Tuesday, while Cosco shares were S$0.015 or 2.8 per cent down at S$0.52.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Telegram messaging service to allow Tether stablecoin payments
Hong Kong regulator to probe PwC auditing role over Evergrande
US: S&P, Dow open flat as Middle East jitters ease, Netflix weighs on Nasdaq
DBS puts 46 retail units, HDB shops on market for S$210 million
China to facilitate Hong Kong IPOs and expand Stock Connect
Global equity funds see surge in outflows as rate cut hopes fade