Brokers' take

Viva Industrial Trust | Buy Fair value: S$0.93 April 2 close: S$0.885 OCBC Investment, April 2

LAST Friday, the manager of Viva Industrial Trust (VIT) announced that it has agreed with the ESR-Reit manager to extend the period of exclusivity.

Should an agreement on the merger be reached, we believe that the share swap ratio will likely be at least dividend-neutral in order to entice the VIT unitholders to accept the offer. On the other hand, should the relevant parties fail to reach an agreement, we expect the uncertainty associated with ongoing discussions to be alleviated, which may in turn help the unit price recover to prior levels.