“We believe [the sale] was to allow ADM to unlock value of its investments in Wilmar… given Wilmar’s strong share price performance year-to-date,” say the analysts in a report dated August 21.
Following the news that one of Wilmar International’s major shareholders, Archer Daniels Midland Co (ADM) has sold some 170.5 million shares at a placement price of $4.40, shares in Wilmar plunged over 10% on August 20, although the agribusiness group has seen a slight climb in its share price on August 21.
On that, CGS-CIMB analysts Ivy Ng and Nagulan Ravi have maintained their “add” recommendation on Wilmar with an unchanged target price of $5.53.
