Besides Otto Marine, CIMB parses who's next?

SINGAPORE (June 3): Following Otto Marine’s June 2 announcement that it might receive an acquisition offer from a yet-to-be-named party, CIMB has drawn up a list of other names in the offshore and marine space that will likely figure in various other corporate actions.

Based on companies whose shares are trading at below one, or even two standard deviation off their book value, and who have “relatively decent” balance sheets and of course, a controlling shareholder, the list filtered down by CIMB’s analyst Lim Siew Khee in a Friday note includes: Baker Technology, CSE Global, Mermaid Maritime, Dyna-Mac and Pacc Offshore.

However, if a different criteria, based on qualitative attributes is applied, the list of offshore and marine companies include ASL Marine, KrisEnergy, KS Energy, Marco Polo Marine and Pacific Radiance (PACRA). The way CIMB sees it, these companies have highly valued businesses with potential for rebound if oil prices recover sharply; they are run by a quality management keen to keep the business going. There are major shareholders building up their positions, according to Lim.

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