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<Research>UBS Views CKI HOLDINGS (01038.HK) Sale of UKPN as Overall Positive, but ST Special Div. Unlikely
Recommend 7 Positive 10 Negative 4 |
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UBS released a research report believing that the sale of the entire stake in UK Power Networks (UKPN) by CKI HOLDINGS (01038.HK), along with CK ASSET (01113.HK) and POWER ASSETS (00006.HK), is overall positive. The sale price of GBP10.548 billion (approx. $110.754 billion) is about 5% higher than UBS' forecast of 1.44x the RAB multiple for UKPN. Based on a discounted cash flow framework, this translates to a valuation of approx. $3.7 per share for CKI HOLDINGS and $3.5 per share for POWER ASSETS. From a capital allocation perspective, UBS believed that the likelihood of CKI HOLDINGS distributing a special dividend in the short term is low, as the Company is more inclined to redeploy cash through potential new acquisitions. Therefore, the broker kept rating at Buy for CKI HOLDINGS, with a target price of $73. AASTOCKS Financial News Website: www.aastocks.com |
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