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8/3/2019 Disinvestment - Market Strategy 12May09
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Disinvestment Market Strategy 12 May 2009
1
RHH: Winner of LIPPER-STARMINE broker award for “Earnings Estimates in
Midcap Research 2008” | “Honourable Mention” in Institutional Investor 2009
RHH Research is also available on Bloomberg FTIS <GO> and Thomson First Call
Amitabh Chakraborty, CFA Vinod Nair Bandish Mehta
(91-22) 6766 3404 (91-22) 6766 3443 (91-22) 6766 3454
[email protected] [email protected] [email protected]
Market Strategy 12 May 2009
Draft prospectus filed with SEBI for public offering
Company
Expected amt to be raised
(Rs bn)
Rail India Technical & Economic
Services (RITES)3.5
National Hydro Power Corp 55.0
Bharat Oman Refineries 24.0
UTI Asset Management Co 23.0
Oil India 14.7
Total Potential 120.2
Strategic sale cases called off earlier
CompanyPercentage of proposed
strategic sale (%)
Listed entities
Balmer Lawrie and Company 61.8
Engineers India 61
Hindustan Petroleum Corporation 39.01
National Aluminium Company 61.15
National Fertilizers 53
Rashtriya Chemicals and Fertilizers 53
Shipping Corporation of India 54.12
State Trading Corporation of India 75
Unlisted entities
Engineering Projects India 74
Hindustan Paper Corporation 74
Hindustan Petroleum Corporation 39.01
Manganese Ore India 51
National Building Construction
Corporation74
Sponge Iron India 100
Recommendation snapshot
Sectors likely to gain from stake sale
Logistics, Shipping, Engineering & Construction, Oil & Gas,
Metals and Fertilizers
Disinvestment
A step towards improved fiscal fitness
Populist fiscal sops announced with an eye to the elections coupled with fiscalstimulus injections have skewed the Indian government’s books of accounts.India’s fiscal deficit is now estimated at 6% of GDP for FY09 against theinitially projected 2.5% (5.5% for FY10). In our view, the divestment of government holdings in public sector enterprises is the best option to increasepublic revenues without fanning debt.
Ballooning fiscal deficit: Although the revised government estimates for FY09revenue receipts show a growth of 3.7% over FY08, this is significantly lowerthan the 11.3% previously anticipated. What is more worrying is the increase indebt required to finance fiscal deficit, which has been revised upwards by 145%for FY09. The government, in its interim budget, drastically increased its fiscaldeficit estimate, announcing that the central government deficit for FY09 wouldcome in at 6% of GDP instead of the initially projected 2.5%.
The government is more upbeat about its FY10 budget which estimates a growthof 8.4% in revenue receipts over FY09RE and a decline in fiscal deficit to 5.5%of GDP. However, the continuation of populist fiscal sops amidst therecessionary climate is likely to suppress contributions to the government kittyand could lead to a downward revision of revenue receipt estimates during thecourse of the year.
The case for disinvestment: Disinvestment was successful under the NDAregime, mobilising Rs 337bn over 1998–2004, until Left party opposition
derailed the process. During 1998–2004, the government realised an average of Rs 56bn per year. This helped pare the fiscal deficit from 6.5% of GDP in1998–99 to 4.5% in 2003–04. Going by our back-of-the-envelope calculations, if the new government manages to mobilise ~Rs 100bn through lined up publicoffers and strategic sales in FY10, it can lower fiscal deficit by ~25bps. PSEsidentified for disinvestment in the past, but where plans were later shelved,would likely be the first to go under the hammer.
Who stands to gain: Our analysis shows that stocks belonging to sectors such asLogistics, Shipping, Engineering & Construction, Oil & Gas, Metals and Fertilizerswould stand to gain if the process of disinvestment takes place for PSEs identifiedas stake-sale candidates in the past.
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Disinvestment Market Strategy 12 May 2009
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Fig 1 - Public sector (center + state) deficit
10.7
11.5 11.5
10.6
9.8
9.2
8.0 7.97.3
10.0
6
7
8
9
10
11
12
2 0 0 0 -
0 1
2 0 0 1 -
0 2
2 0 0 2 -
0 3
2 0 0 3 -
0 4
2 0 0 4 -
0 5
2 0 0 5 -
0 6
2 0 0 6 -
0 7
2 0 0 7 -
0 8
2 0 0 8 -
0 9 R E
2 0 0 9 -
1 0 E
(%)
Source: RBI, RHH
Fig 2 - Central government deficit as a percentage of GDP
5.76.2
5.9
4.54.0 4.1
3.43.0
6.05.5
2
3
4
5
6
7
2 0 0 0 -
0 1
2 0 0 1 -
0 2
2 0 0 2 -
0 3
2 0 0 3 -
0 4
2 0 0 4 -
0 5
2 0 0 5 -
0 6
2 0 0 6 -
0 7
2 0 0 7 -
0 8
2 0 0 8 -
0 9 R E
2 0 0 9 -
1 0 E
(%)
Source: RBI, RHH
Disinvestment – an analysis
With tax revenues sapped by fiscal sops and subsidies, the best option for the newgovernment to improve it revenue inflow without raising debt would be to divest itsstakes in Public Sector Enterprises (PSE). Past experiments with PSE divestment haveproved successful. However, the process came to a virtual standstill during the last 3–4years due to the opposition of the Left parties, which were a key coalition partner for alarge portion of the UPA government’s rule.
Various modes of disinvestmentDisinvestment transactions in India can be classified into four main categories:
Transactions involving the sale of the government’s minority shareholding (eitherthrough an offer for sale to the public or an auction to selected investors), subject tothe residual equity of the government remaining at least 51%.
Sale of all or a part of the government’s residual shareholding in disinvestedPSEs/companies either through a public offering or private placement.
Sale of a large block of shares in a PSE (including subsidiary of a PSE) along withtransfer of management control to a strategic partner. This is termed as a strategicsale. After the strategic sale, the PSE ceases to be a government company.
Sale of a block of shares in one PSE to another PSE.
Successful past deals
The government successfully mobilised Rs 466bn through the disinvestment processfrom 1994–95 to 2007–08. During the NDA government’s rule from 1998–99 to 2003–04, the government raised Rs 337bn through the process of disinvestment with Rs 155bncoming in during 2003–04 alone.
Fig 3 - Amount realized from disinvestment
48
2 4 9
54
19 19
57
33
155
2816
24
0
20
40
60
80
100
120
140
160
1 9 9
4 -
9 5
1 9 9
5 -
9 6
1 9 9
6 -
9 7
1 9 9
7 -
9 8
1 9 9
8 -
9 9
1 9 9
9 -
0 0
2 0 0
0 -
0 1
2 0 0
1 -
0 2
2 0 0
2 -
0 3
2 0 0
3 -
0 4
2 0 0
4 -
0 5
2 0 0
5 -
0 6
2 0 0
6 -
0 7
2 0 0
7 -
0 8
(Rs Bn)
Source: Department of Disinvestment
Divestment of government stake in
public sector enterprises the only way
to help plug the fiscal gap
Past experiments with divestment have
proved successful
Too high for comfortToo high for
comfort
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Disinvestment Market Strategy 12 May 2009
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Fig 4 - Key disinvestment deals
Company% of Govt. equitydisinvested
Mode Deal value (Rs mn)Date of completion of
transaction
Maruti Udyog 27.5% IPO 9,930 July-03
Jessop & Co 72% Strategic sale 182 Aug-
Hindustan Zinc 18.92% Exercise of call option 3,240 Nov-03
ICI 9.20% See note* 771 Oct-03
IBP 26%Residual shares throughoffer for sale
3,507 Mar-04
Indian PetrochemicalsCorporation
28.95%Residual shares throughoffer for sale
12,029 Mar-04
Dredging Corporation of India
20% Offer for sale 2,212 Mar-04
GAIL 10% Offer for sale 16,274 Mar-04
ONGC 9.96% Offer for sale 105,340 Mar-04
Source: Department of Disinvestment * 9.2% of the equity (consisting of 3760783 shares of Rs 10 each) held by government in ICI sold by the Department of Fertilizers to Asian Paints (India) at the rate of Rs 205 per share.
Several potential targets for disinvestment…We believe there is a large window of opportunity for the next government to bolster itsfinances via the divestment process. With improving market conditions, the stakedisinvestment would attract a wider audience and higher valuations. There are aplethora of PSEs in which the government can sell off its stake:
Firstly, there are those PSEs which have filed for a public issue with SEBI, but areyet to see the light of day on the primary markets. These include Rites, NationalHydro Power Corp, Bharat Oman Refineries, UTI Asset Management Company
and Oil India. (Ref Fig 5)
Secondly, there are about 25 PSEs recommended by the Disinvestment Committeewhich can be potential targets of divestment.
Thirdly, there are those PSEs which were slotted for disinvestment but for which theprocess was later called off for various reasons.
Fig 5 - Draft prospectus filed with SEBI for public offering
Company Sales PATExpectedamt to be
raised
Stake to bedivested
(%)
Current holdingby govt or govt
led companyBrief description
FY08 (Rs bn) (Rs bn)
Rail India Technical &Economic Services(RITES)
6.6 1.0 3.5 28 100
Three distinct fields of business: (1) consultancy intransport infrastructure; (2) leasing, export,maintenance & rehabilitation of rolling stock, andexport & rehabilitation of railway equipment; and(3) running of railway systems under concessionagreements
National Hydor PowerCorp
36.8 12.3 55.0 15 100Planning, development and implementation of hydroelectric power stations
Bharat OmanRefineries*
- - 24.0 48 50Grassroots petroleum refinery in Bina, MadhyaPradesh
UTI AssetManagementCompany
4.0 1.4 23.0 54.2 99.9 Provides asset management services
Oil India 60.8 17.9 14.7 10 98.13Primarily engaged in the exploration,development, production and transportation of crude oil and natural gas in India
Source: RHH *Yet to commence operations
PSEs that have filed for a public issue
with SEBI offer scope for a stake sale
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Disinvestment Market Strategy 12 May 2009
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Fig 6 - PSEs recommended by the Disinvestment Committee
FY08Company Sector
Sales PAT
Projects & Equipment Corp. Construction 57,263 414
Central Inland Water Transport Corp. Shipping NA NA
Cochin Shipyard Shipping 8,572 939
Hindustan Shipyard Shipping 5,101 113
National Projects Construction Corp. Construction 5,869 23
Semiconductor Complex Capital Goods NA NA
Telecommunications Consultants India Telecom 8,465 1,001
Cotton Corp. of India Textiles 16,386 214
Indian Medicines Pharmaceuticals Pharma NA NA
Jute Corp. of India Textiles NA
National Buildings Construction Corp. Construction 20,249 2,798
Hooghly Dock & Port Engineers Shipping NA NA
Rajasthan Drugs & pharmaceuticals Pharma NA NA
Karnataka Antibiotics & Pharmaceutics Pharma 1,880 52Brahmaputra Valley Fertilizers Corp. Fertilizers NA NA
Hospital Services Consultancy Corp. Healthcare NA NA
National Seeds Corp. Agri product NA NA
National Film Development Corp. Media NA NA
North Eastern Electric Power Corp. Power NA NA
Electronics Corp. of India Capital Goods 9,817 1,341
Ennore Port Ltd Shipping 1,437 349
North Eastern Handicrafts and Handlooms Development Corp. Textiles NA NA
Central Warehousing Corp. Logistics 7,762 1,369
Numaligarh Refinery Oil & Gas 71,765* 5,688*
Source: Department of Disinvestment *FY 07 numbers
Fig 7 - Strategic sale cases called off
S.No.
Name of the CPSUPercentage of proposed
Strategic SaleComment
Current Govt(Centre + State)
holding (%)
1 Balmer Lawrie and Company 61.8% 61.8*
2 Engineering Projects India 74% 100.0
3 Engineers India 61% 51% through Strategic Sale and 10% to Employees 90.4
4 Hindustan Paper Corporation 74% 100.0
5 Hindustan Petroleum Corporation 39.01% 34.01% through Strategic Sale and 5% to Employees 51.16 Manganese Ore India 51% 100.0
7 National Aluminium Company 61.15%10% Domestic Issue, 20% ADR Issue, 29.15%Strategic Sale, 2% to Employees
87.2
8National Building ConstructionCorporation
74% 100.0
9 National Fertilizers 53% 51% through Strategic Sale and 2% to Employees 97.6
10 Rashtriya Chemicals and Fertilizers 53% 51% through Strategic Sale and 2% to Employees 92.5
11 Shipping Corporation of India 54.12% 51% through Strategic Sale and 3.12% to Employees 80.1
12 Sponge Iron India 100% 100.0
13 State Trading Corporation of India 75% 65% through Strategic Sale and 10% to Employees 91.0
Source: Department of Disinvestment * Government holds 59.6% stake in Balmer Lawrie Investments, which in turn holds 61.8% in Balmer Lawrrie and Co.
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Disinvestment Market Strategy 12 May 2009
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Past strategic sale candidates to be the first in line
In our opinion, if the next government takes the disinvestment route to improve itsfinances, the companies which were identified for strategic sale are likely to be the firstto go under the hammer (see fig 7). Based on our analysis, if the disinvestment in thosecompanies happens, stocks belonging to sectors such as Logistics, Shipping, Engineering
& Construction, Oil & Gas, Metals and Fertilizers stand to gain.
The following tables show the relative valuations of companies identified for strategicsale (highlighted), with their peers in the respective sector. We find that the strategic salecandidates are currently trading almost at par or at a discount to other peers within thesector. We believe that any stake divestment by the government in these PSEs woulddrive valuations of these companies and thereby push up the valuation of theirrespective sectors.
Fig 8 - Valuation (Logistics)
M Cap Valuation TTM (x)Company
(Rs bn) P/E Fwd P/E P/B P/S EV/EBITDA
Balmer Lawrie & Co Ltd 4.7 4.6 4.1 1.1 0.3 3.2
Container Corp Of India 104.7 14.3 12.2 3.3 3.1 10.3
Gateway Distriparks Ltd 7.5 11.1 8.5 1.3 3 7.2
Average 10.0 8.3 1.9 2.1 6.9
Source: Bloomberg
Fig 9 - Valuation (Engineering & Construction)
M Cap Valuation TTM (x)Company
(Rs bn) P/E Fwd P/E P/B P/S EV/EBITDA
Engineers India 33 17.2 12.1 2.9 4.5 11.7
Cummins India 44 13.2 13.5 3.5 1.6 10.1
Punj Lloyd 38.4 9.9 9.4 1.4 0.5 6.3
IRB Infrastructure 34.1 24.8 8.9 2.1 3.9 12.0
Thermax Ltd 29.4 9.7 10.3 3.7 0.8 6.9
IVRCL Infrastructure 22.9 8 9.6 0.9 0.6 7.2
Average 13.8 10.7 2.4 2.0 9.0
Source: Bloomberg
Fig 10 - Valuation (Oil & Gas)
M Cap Valuation TTM (x)Company
(Rs bn) P/E Fwd P/E P/B P/S EV/EBITDA
HPCL 83.3 6.4 6.9 0.8 0.1 7.7
BPCL 129.5 7.4 7.8 1 0.1 5.1
Mangalore Refinery 92.6 7.2 14.8 2.4 0.3 5.0
Petronet LNG Ltd 39.7 7.7 7.6 2.5 0.5 6.2
Chennai Petroleum 18.3 1.6 11.2 0.5 0.1 2.0
Reliance Industrial Infra 11.1 50.9 - 7.6 16.1 -
Hindustan Oil Exploration 11.9 35.2 - 1.2 9.4 18.6
Average 16.6 9.7 2.3 3.8 7.4
Source: Bloomberg
Divestment most likely in companies
already considered for strategic sale
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Disinvestment Market Strategy 12 May 2009
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Fig 11 - Valuation (Metal & Mining)
M Cap Valuation TTM (x)Company
(Rs bn) P/E Fwd P/E P/B P/S EV/EBITDA
National Aluminium 157.6 9.4 - 1.7 3.1 -
Tata Steel 206.3 1.6 5.9 0.7 0.1 3.0
Hindustan Copper 181.9 56.9 - 14.3 8.8 38.2
Hindalco Inds 116.1 3.6 19 0.5 0.1 5.1
JSW Steel Ltd 76.6 4.3 6.7 1 0.6
Average 15.1 10.5 3.6 2.5 13.1
Source: Bloomberg
Fig 12 - Valuation (Fertilizers)
M Cap Valuation TTM (x)Company
(Rs bn) P/E Fwd P/E P/B P/S EV/EBITDA
National Fertilizers 21 19.6 - 1.5 1.3 9.2RCF 26 16.5 20.7 1.7 1 12
Chambal Fertilizers 20 8.5 8.1 1.7 0.6 7.2
Coromandel Fertilizers 19.4 3.4 5.2 2.4 0.2 4.3
Khaitan Chemicals & Fertilizers 0.3 3 - 0.4 0.1 4.1
Mangalore Chemicals & Fertilizers 1.9 5.4 - 0.5 0.1 6.3
Nagarjuna Fertilizers & Chemicals 10.7 33.1 23.4 0.7 0.5 -
Shiva Fertilizers 0.2 20.8 - 0.8 0.2 10
Deepak Fertilizers & Petrochem Corp 6.4 4.1 4.7 0.9 0.6 4
Average 12.7 12.4 1.2 0.5 7.1
Source: Bloomberg
Fig 13 - Valuation (Shipping)
M Cap Valuation TTM (x)Company
(Rs bn) P/E Fwd P/E P/B P/S EV/EBITDA
Shipping Corp 40 4.8 - 0.7 1.1 -
Essar Shipping Ports & Logistics 31.3 6.9 - 0.6 1 15.2
Great Eastern Shipping Company 36.3 2.5 3.8 0.9 1.1 2.9
Shreyas Shipping & Logistics 0.6 9.8 - 0.4 0.2 9.4
Varun Shipping Company 7.6 3.2 6.7 0.8 0.8 5.8
Aban Offshore 17.2 2.9 1.7 3.2 0.5 11.2
Garware Offshore Services 2.5 6.0 3.2 1.1 1.4 2.6Great Offshore 10.6 5.9 4.6 1.6 1.6 6.4
Average 5.3 4.0 1.1 1.0 7.6
Source: Bloomberg
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Disinvestment Market Strategy 12 May 2009
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Apart from the above options, we have analysed listed PSEs that offer scope fordisinvestment, such that the government’s stake remains at least 51% post-dilution.
Fig 14 - Listed government companies offering scope for disinvestment
Valuation TTM (x)Company Sector
Govt. (Central /
State) holding (%)
Disinvestment
possible (%) P/E P/B P/CEPS EV/EBITDAHMT Automobile 98.9 47.9 - 14.2 - 256.6
Scooters India Automobile 95.4 44.4 - 6.9 - -
Allahabad Bank Banks 55.2 4.2 3.6 0.8 3.4 12.3
Bank of India Banks 64.5 13.5 6.7 1.5 6.5 14.0
Bank of Maha Banks 76.8 25.8 6.9 1.2 5.6 13.8
Canara Bank Banks 73.2 22.2 6.1 1.1 5.5 11.6
Central Bank Banks 80.2 29.2 7.7 1.1 6.7 15.1
Corporation Bank Banks 57.2 6.2 5.7 1.0 5.3 12.6
Indian Bank Banks 80.0 29.0 7.5 1.5 6.7 13.9
Indian Overseas Banks 61.2 10.2 6.3 1.6 5.9 12.5
Punjab Natl Bank Banks 57.8 6.8 8.1 1.5 7.4 13.9
St Bk of India Banks 59.4 8.4 15.4 2.1 13.9 14.5
Syndicate Bank Banks 66.5 15.5 4.8 1.0 4.2 12.9
UCO Bank Banks 63.6 12.6 7.4 1.2 6.3 14.0
Union Bank (I) Banks 55.4 4.4 5.3 1.3 4.9 12.7
BHEL Capital Goods 67.7 16.7 36.8 9.3 33.2 19.4
Engineers India Capital Goods 90.4 39.4 20.3 3.3 19.2 8.1
Hind.Organ.Chem. Chemicals 58.6 7.6 19.0 - 6.5 6.4
Bharat Electron Consumer Durables 75.9 24.9 10.6 2.6 9.5 4.7
ONGC Oil & Gas 74.1 23.1 13.5 3.0 12.4 7.5
Andrew Yule & Co Diversified 94.4 43.4 156.1 - 94.3 31.7
FACT Fertilizers 98.1 47.1 89.4 - 17.9 10.9
Madras Fert. Fertilizers 59.5 8.5 - - - -
Natl. Fertilizer Fertilizers 97.6 46.6 19.0 1.4 10.2 8.7
RCF Fertilizers 92.5 41.5 19.3 1.9 12.4 10.4
Balmer Law. Inv. Finance 59.7 8.7 14.6 4.6 14.6 12.3
Guj. State Fin. Finance 55.1 4.1 - - (0.6) 187.0
Haryana Fin. Co. Finance 97.0 46.0 - - - -
Power Fin Corpn Finance 89.8 38.8 16.4 1.8 16.3 11.8
Rural Elec Corpn Finance 81.8 30.8 11.2 1.7 11.1 12.5
GAIL (India) Gas Distribution 57.3 6.3 14.6 2.8 11.9 7.3
I T D C Hotels & Restaurants 90.0 39.0 - - - -
Container Corpn Logistics 63.1 12.1 15.5 3.5 13.5 9.2
G M D C Metals & Mining 74.0 23.0 18.0 4.4 13.1 9.0
NMDC Ltd Metals & Mining 98.4 47.4 43.5 16.5 42.7 25.9
Dredging Corpn Miscellaneous 78.6 27.6 12.3 1.5 9.6 8.0
Hind Photo Films Miscellaneous 90.6 39.6 - - - -
Hind Copper Metals & Mining 99.6 48.6 73.5 20.2 69.1 103.5
Natl Aluminium Metals & Mining 87.2 36.2 18.6 3.3 15.8 9.1
Mysore Paper Paper 64.7 13.7 17.2 1.2 5.9 7.8
Bharat Immunolog Pharmaceuticals 59.3 8.3 - 3.5 - -
Neyveli Lignite Power 93.6 42.6 19.3 2.2 13.4 9.6
NTPC Power 89.5 38.5 23.5 3.0 17.9 12.2
Power Grid Corpn Power 86.4 35.4 30.2 3.0 17.7 15.3
Ircon Intl. Realty 99.7 48.7 - - - -
IOCL Refineries 80.4 29.4 7.7 1.3 5.5 6.1
SCI Shipping 80.1 29.1 7.2 1.0 5.2 3.9
SAIL Steel 85.8 34.8 10.5 3.3 9.0 5.1
MTN L Telecomm 56.3 5.3 11.2 0.5 4.9 1.8
ITI Telecomm 93.0 42.0 0.0 - - -
Punjab Commun. Telecomm 71.2 20.2 - 0.4 - -
MMTC Trading 99.3 48.3 565.1 105.8 530.3 224.4
Source: RHH, Capitaline
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Coverage Profile
By recommendation By market cap
3541
24
0
10
20
30
4050
Buy Hold Sell
(%)
36
22
42
0
10
20
30
4050
> $1bn $200mn - $1bn < $200mn
(%)
Recommendation interpretation
Recommendation Expected absolute returns (%) over 12 months
Buy More than 15%
Hold Between 15% and –5%
Sell Less than –5%
Recommendation structure changed with effect from March 1, 2009
Expected absolute returns are based on share price at market close unless otherwise stated. Stock recommendations are based on absolute upside (downside) and have a12-month horizon. Our target price represents the fair value of the stock based upon the analyst’s discretion. We note that future price fluctuations could lead to a temporary
mismatch between upside/downside for a stock and our recommendation.
Religare Capital Markets Ltd4th Floor, GYS Infinity, Paranjpe ‘B’ Scheme, Subhash Road, Vile Parle (E), Mumbai 400 057.
Disclaimer
This document is NOT addressed to or intended for distribution to retail clients (as defined by the FSA).
This document is issued by Religare Hichens, Harrison & Co Plc (“Hichens”) in the UK, which is authorised and regulated by the Financial Services Authority in connectionwith its UK distribution. Hichens is a member of the London Stock Exchange.
This material should not be construed as an offer or recommendation to buy or sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, orthe fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action or any other matter. The material in this report is basedon information that we consider reliable and accurate at, and share prices are given as at close of business on, the date of this report but we do not warrant or represent(expressly or impliedly) that it is accurate, complete, not misleading or as to its fitness for the purpose intended and it should not be relied upon as such. Any opinionexpressed (including estimates and forecasts) is given as of the date of this report and may be subject to change without notice.
Hichens, and any of its connected or affiliated companies or their directors or employees, may have a position in any of the securities or may have provided corporate financeadvice, other investment services in relation to any of the securities or related investments referred to in this document. Our asset management area, our proprietary tradingdesks and investing businesses may make investment decisions that are inconsistent with the recommendations or views expressed in this briefing note.
Hichens accepts no liability whatsoever for any direct, indirect or consequential loss or damage of any kind arising out of the use of or reliance upon all or any of this materialhowsoever arising. Investors should make their own investment decisions based upon their own financial objectives and financial resources and it should be noted thatinvestment involves risk, including the risk of capital loss.
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