OUE (LJ3.SG) is down 3.9% to $3.44, with volume spiking to over 54 million shares, making OUE the second most active stock today after IFR Markets reported Tuesday, without citing any sources, that Credit Suisse International is selling up to a US$116 million stake in the hotel operator, with CS as the sole bookrunner on the deal. 

The report says the shares are being offered in a range of $3.35-$3.50 each, which are at a discount of 2.2%-6.4% to OUE’s Tuesday close. UOB KayHian analysts Vikrant Pandey and Vijay Natarajan say they understand from the OUE management that there has been no share sale or placement.

“Instead, there has been a share financing arrangement by major shareholder Golden Concord Asia Limited which has been misinterpreted.” The analysts say management will be issuing a clarification announcement soon. “We view any near-term share price correction as a buying opportunity and reiterate our Buy call with a target price of $4.25.”

 

Orderbook suggests good buying interest at $3.43.