0607 GMT [Dow Jones] Chuan Hup (C33.SG) +8% at 3-month high of S$0.405 in active trade, possibly on hopes marine transportation service provider may sell its 23% stake in offshore support vessel operator CH Offshore (C13.SG). "Considering the company''s track record of rewarding shareholders, we believe management is likely to distribute a significant portion of the proceeds back to shareholders in the event of a successful sale," says Kim Eng Securities. Tips stake to be worth S$162 million. Says Chuan Hup may even bundle stake with Scomi Marine''s (7045.KU) 29% interest in CH Offshore in collective sale to secure higher premium. Resistance for Chuan Hup tipped at S$0.44 (July 23 close). Talk of sale also pushing up share price of CH Offshore, which is likely to end up takeover target if both Chuan Hup, Scomi sell their combined 52% stake. Under Singapore laws, any party must launch takeover for remaining shares once stake reaches 30% or more. CH Offshore +10.4% at S$1.06 on strong volume. (FKH)
