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Friday, April 12, 2013

Maybank-KimEng tips potential Singapore takeover plays


In the wake of Thai F&B player Minor (MINT.TH) taking a 10% stake in BreadTalk (5DA.SG), Maybank-Kim Eng tips nine Singapore small-caps with favourable chances for positive corporate action, including investments by private-equity or industry peers, privatisation exercises, new substantial shareholders or unsolicited takeover offers.

“In a world of record low interest rates against a backdrop of macro uncertainties, acquirers can control their own fate by buying out good assets,” it says. Its picks straddle various sectors, but it gave extra weight to consumer plays.

“Our choices also reflected attractive underlying valuations as well as positive growth potential, which will be supportive of further share price appreciation even in a non-event, meaning we would be comfortable holding on to these stocks in the long term even if a corporate action does not pan out.”

It tips China Minzhong (K2N.SG), Dukang Distillers (GJ8.SG), Hotel Properties(H15.SG), Midas (5EN.SG), Sarin Technologies (U77.SG), Sing Holdings (5IC.SG),Super Group (S10.SG), Viz Branz (L5J.SG) and Yongnam (Y02.SG).

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