First Pacific (142 HK)'s Full Value As Maynilad Commences Trading

• The proposed spin-off - from 49.9%-held MPIC - and listing of Maynilad Water Services (MYNLD PH) completed on the 7th November.

• Priced at PHP 15/share, Maynilad closed yesterday at PHP 14.82/share, down 1.2%.

• First Pacific Co (142 HK)‘s indirect/direct holding in Maynilad is estimated at 19.1%, accounting for ~6% of NAV.

The Trade:

• First Pac has had a great run-up in the past 12 months.

• I don’t see any near-term catalyst for the unlisted stub ops.

• If in (stub set up), I’d be taking money off the table.

This insight is labelled bearish as I’m not bullish here.