Singapore's SIA Engineering surges as DBS upgrades to 'buy' on privatisation hopes

SIA Engineering

05/07/2019 09:01

** Shares of SIA Engineering Co Ltd  SIAE.SI  rise as much
as 8.8% to S$2.960 in their best intraday session since Oct 2008
    ** DBS upgrades the stock to "buy" from "hold", raises PT to
S$3.01 from S$2.60; cites renewed optimism over privatisation of
co by parent Singapore Airlines  SIAL.SI  
    ** "Given SIE's rather uninspiring stock price performance
over the last 12 months, parent SIA could thus view current
valuations as attractive for privatisation," DBS says
    ** "The rationale for privatization is also pretty strong,
in our view, as SIA currently has close to a 78% stake in its
maintenance, repair, operations unit, and the benefits of
keeping SIE listed is not entirely apparent," DBS says 
    ** DBS says PT upgrade factors in a 20% privatisation
premium to the aircraft maintenance provider's last traded price
    ** Stock at its highest since early-Oct 2018
    ** About 10.3 mln shares traded, compared with 30-day avg
vol of 432,483 shares

 ((Ambar.Warrick@thomsonreuters.com; +91-80-6749-6625; Reuters
Messaging: ambar.warrick.thomsonreuters.com@reuters.net))