Morgan Stanley likes the freeing-up of the balance sheet and divestment of non-core assets, following Superloop's agreement to sell Superloop Hong Kong and select assets from Singapore. The sale value is $140m (a 30% premium to carrying value).

The company will continue to operate the Singapore network for at least three years for a fee. Management will provide a further capital management update in February, 2022. The Equal-weight rating and $1.05 target price are retained. Industry view: In-line.

Sector: Telecommunication Services.

Target price is $1.05.Current Price is $1.19. Difference: ($0.14) - (brackets indicate current price is over target). If SLC meets the Morgan Stanley target it will return approximately -13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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