Sinomem Technology (S14.SG) is up 24.8% at $0.980 with 15 million shares traded, after the membrane manufacturer for the wastewater treatment industry announced it has received a takeover bid from private equity firm Clean Water Investment at $0.70 per share, valuing Sinomem at $351.3 million, equivalent to a 28.4% premium over the last transacted price (March 1) of $0.545.
DMG, which does not have a rating on the stock, notes the offer price represents a 31.6% premium to Sinomen’s NAV/share.
DMG, which does not have a rating on the stock, notes the offer price represents a 31.6% premium to Sinomen’s NAV/share.
Analyst Selena Leong says “should the proposed privatization of Sinomem proceed, some of the other Singapore-listed wastewater treatment companies may follow suit if the right offer comes along. Most have low liquidity and trade at a 30%-40% discount to their China/Hong Kong-listed peers.”
China focussed waste names are mixed today; Sound Global (E6E.SG) is up 2.1% at $0.745, United Envirotech (U19.SG) is up 4.0% at $0.395, Bio-Treat Technology (B22.SG) is flat at $0.045, and Asia Environment (A58.SG) is flat at $0.215.
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