Lim & Tan Securities expects privatization offer for GuocoLeisure?
We suspect a replay of Guoco Group (HK$92.40,up 10 cents) could be at work in Guoco Leisure (85 cents, up 1/2 cent) where the former had reported a huge US$330mln loss in 1H2012 only to see Tan Sri QLC launch in privatization offer in Dec’12 at HK$88 per share and recently revised it up to HK$100 per share, significantly above the pre-privatization price of HK$60.
Guoco Leisure had just reported a loss for 3Q to Mar’13 of US$6.5mln due to the eurozone crisis.
Technically, a break of the 78-80 cents level suggests lower levels. It is currently trading at 0.77x its NAV of $1.10 a share. We do not yet have a rating on the stock.
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