SINGAPORE (Aug 13): Logistics management company Chasen Holdings is mulling a separate listing of at least one of its subsidiaries in a bid to improve value for shareholders. Despite a recent improvement in earnings, Chasen shares are trading at a price-to-earnings ratio of just over five times. Chasen is also trading at just 0.4 times its book value of 18.3 cents.

“Right now, if you add up all the values of the subsidiaries, they far exceed the value of the parent company,” says non-executive chairman Eric Ng at a recent briefing. “So, the only thing to do is to let the subsidi­aries go, which means [to] realise the value of the subsidiaries.”

Ng sees two possibilities: The company could look for an investor to take a stake; or it could unlock value by listing the subsidiaries separately. There are three such units — two in China and one in Malaysia — that can be considered for a spinoff. The Hong Kong Stock Exchange’s GEM board, meant for smaller companies, is the location Chasen is eyeing.

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