KEY IDEA CapitaLand Limited: CMA delisting now in the bag Over the weekend, CapitaLand (CAPL) announced that, together with concert parties, it has by 5pm on 6 Jun-2014 owned, controlled or have agreed to acquire (including acceptances) ~97.1% of CMA’s issued share capital. Therefore, its stake in CMA is now above the threshold to compulsorily acquire the remaining shares that it does not own. The offer for CMA shares will close at 5:30pm on 9 Jun-2014 and CMA will be suspended from trading on 10 Jun-2014. We continue to see CAPL’s move to delist CMA as a rational one that will simplify the group’s organizational structure and allow management to deploy significant capital to well-understood CMA assets. More significantly, the privatization of CMA will also be accretive to CAPL’s earnings and ROE, which is now a key focus for management. Maintain BUY on CAPL with an unchanged fair value estimate of S$3.79 (25% discount to RNAV). (Eli Lee)

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NEWS HEADLINES - The S&P 500 Index rose 0.46% to close at 1,949.44 on 6 Jun 2014. - China’s exports rose 7.0% YoY in May, beating the Bloomberg median estimate for an increase of 6.7%. - US’s AA+ credit rating was affirmed by Standard & Poor’s. The credit strength of US was attributed to its diversified and resilient economy. However, the polarised policy-making environment and high general government debt and budget deficits constrained the ratings. - KLW Holdings has clinched four new contracts for the supply and installation of doors, with a total value of S$10.2m. The Group has also signed a US$34.0m door supply agreement to United Kingdom. - Popular Holdings has entered into collaboration agreements with BBC Worldwide to license a portion of BBCW’s brands and intellectual property to operate English language Learning Centers in Mainland China and Hong Kong. - Cambridge Industrial Trust’s credit rating of BBB-/Stable/-- has been reaffirmed by Standard & Poor’s.