CWT in advanced talks to list Reit on SGX

Logistics company CWT said that it is in advanced talks on the proposed sale and leaseback of its logistics facilities in 24 Penjuru Road and 2 Fishery Port Road.

These facilities could eventually be included in the proposed listing of a real estate investment trust (REIT).

However, CWT said it has not reached any definitive agreements yet and has not received any regulatory approvals for the proposed REIT.

The company disclosed this in a filing with the Singapore Exchange (SGX) following the regulator’s query on the trading activity of the company’s shares today.

CWT shares rose nearly seven per cent in early trading to hit a high of 73.8 cents.

That prompted an SGX query and the company asked for its shares to be halted late morning pending an announcement.

When the counter resumed trading, CWT shares traded at about 71 cents.

The stock ended Thursday trade at 72.5 cents, up 3.5 cents or five per cent.

Apart from the proposed deal, CWT also said that Kim Eng Research has issued a favourable recommendation for the company’s shares today.

Kim Eng has initiated coverage of the stock with a “buy” call and set a target price of S$1.11.

Source : Channel NewsAsia – 17 Dec 2009

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