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<Research>BofAS: Blackstone's Potential Acquisition of NWD Expected to Provide ST Boost to Developers
Recommend 2 Positive 8 Negative 4 |
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Blackstone Inc. (BX.US) is purportedly exploring acquiring a major stake in NEW WORLD DEV (00017.HK), potentially becoming its largest single shareholder, BofA Securities recaptured in its research report. Blackstone may lead a restructuring of NWD. Although NWD later issued an announcement clarifying that no agreement has been reached, it confirmed that its controlling shareholder, Chow Tai Fook Enterprises, has received investment inquiries from certain potential investors. BofA Securities anticipated that the news reflects international private equities' confidence in Hong Kong's real estate sector, which is expected to have a short-term positive impact on the stock prices of NWD and local property developers. However, the broker believed that the medium-term stock price trend of NWD remains highly uncertain, with the key issue being how to address its debt problems. If Blackstone is introduced, it is expected to leverage its asset management experience to create more value, increasing the likelihood of the company resuming dividends. BofA Securities also cautioned that Blackstone's acquisition may constitute a change in company control, potentially triggering early repayment clauses in bonds. The broker reiterated an Underperform rating on NWD with a target price of HKD4.3. AASTOCKS Financial News Website: www.aastocks.com |
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