Legend's Potential Bank Stake Sale Could Narrow Steep Net-Asset-Value Discount

Dow Jones09-21

0813 GMT - Legend Holdings' potential sale of its stake in private bank Banque Internationale a Luxembourg could narrow the Chinese investment-holding company's steep 75% net-asset-value discount, Citi analysts say in a note. The Chinese company is reportedly looking to sell its 90% interest in the Luxembourg private bank, which accounts for roughly 9% of Citi's net-asset value estimate for Legend, they say. While BIL has been a stable profit contributor to Legend, its profit contribution is expected to decline due to the strong growth momentum of Lenovo, another Legend investment, the analysts say. They view the potential BIL divestment as a first step toward Legend becoming a more tech-focused holding company. Citi retains its buy rating and 21.50 Hong Kong dollars target price. Shares end 5.0% higher at HK$23.20.

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