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Analysis of CapitaLand (C31.SI)
23 Mar 2021 (425 views)

I hold 40,000 shares in Capitaland in my cash account and 30,000 shares in my SRS account (bought just a week ago). It traded at $3.31 before being suspended pending an announcement.

According to this article, Temasek is making an offer to take over Capitaland and will offer $4.19 per share to be paid in cash and shares in a REIT called CLIM (Capitaland Investment Management).

Is this a good price?

According to the financial indicators in Yahoo Finance, Capitaland has a book value per share of $4.73 and a diluted EPS of $0.2630.

The offer price of $4.10 represents a PE ratio of 15.6 times of $0.2630 and a discount of 13% on the book value of $4.75. The book value may be reduced on revaluation of the assets at the next financial reporting.

The offer price of $4.10 is an appreciation of 23% over the last traded price of $3.31.

In my view, the offer price is acceptable and reflects a fairer value of Capitaland. I expect the stock price will open at $4.10 later today and may move up from there.

This is just my opinion. I am not recommending a buy or sell of Capitaland at this price.

Tan Kin Lian

 


Analysis of CapitaLand (C31.SI)
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I hold 40,000 shares in Capitaland in my cash account and 30,000 shares in my SRS account (bought just a week ago). It traded at $3.31 before being suspended pending an announcement.

According to this article, Temasek is making an offer to take over Capitaland and will offer $4.19 per share to be paid in cash and shares in a REIT called CLIM (Capitaland Investment Management).

Is this a good price?

According to the financial indicators in Yahoo Finance, Capitaland has a book value per share of $4.73 and a diluted EPS of $0.2630.

The offer price of $4.10 represents a PE ratio of 15.6 times of $0.2630 and a discount of 13% on the book value of $4.75. The book value may be reduced on revaluation of the assets at the next financial reporting.

The offer price of $4.10 is an appreciation of 23% over the last traded price of $3.31.

In my view, the offer price is acceptable and reflects a fairer value of Capitaland. I expect the stock price will open at $4.10 later today and may move up from there.

This is just my opinion. I am not recommending a buy or sell of Capitaland at this price.

Tan Kin Lian