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Hot Stock Syed Mokhtar’s MMC jumps 11% on privatisation rumour

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Hot Stock Syed Mokhtar’s MMC jumps 11% on privatisation rumour Empty Hot Stock Syed Mokhtar’s MMC jumps 11% on privatisation rumour

Post by Cals Mon 06 Jan 2014, 14:41

Hot Stock Syed Mokhtar’s MMC jumps 11% on privatisation rumour
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com   
Monday, 06 January 2014 10:26

KUALA LUMPUR (Jan 6): MMC Corp Bhd rose as much as 11% after news reports speculated that major shareholders of the diversified firm might have given their consent for a planned privatisation of the company.

At 10.07am, MMC, linked to tycoon Tan Sri Syed Mokhtar AlBukhary, was traded at RM3.02 with some 4.7 million shares done. MMC's businesses comprise port operations, power generation and construction.

The stock exchange's fourth-largest gainer had earlier jumped as much as 32 sen to RM3.17.

News reports quoting sources have indicated that MMC's major shareholders might have given their consent for a capital reduction in the firm before delisting the company from Bursa Malaysia.

It was reported that minority shareholders may receive between RM3.70 and RM3.90 a share in MMC.

Analysts have predicted MMC shares will attract market interest on the news.

"Back home, there could be added interest in MMC after a local daily said that a corporate exercise involving a capital reduction-cum-delisting plan is believed to be in the works that may result in minority shareholders getting paid between RM3.70 and RM3.90 per MMC share," HwangDBS Vickers Research Sdn Bhd wrote in a note today.

Affin Investment Bank Bhd analyst Chong Lee Len said if speculation on  MMC's privatisation is true, the exercise is expected to bode well for minority shareholders.

This is because the offer price of RM3.70 to RM3.90 a share is seen as attractive. This is because the price range is near Affin's revised net asset value (RNAV) of RM4.05 a share for MMC.

Lee said Affin "would advise (MMC) minority shareholders to accept" the offer.

"We expect share price to react positively based on the above news flow, closing the gap to our RNAV estimate. We are currently reviewing our TP of RM2.70, which is based on 15% of our RNAV estimate of RM3.20, pending management update," Lee said.
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Hot Stock Syed Mokhtar’s MMC jumps 11% on privatisation rumour Empty Re: Hot Stock Syed Mokhtar’s MMC jumps 11% on privatisation rumour

Post by Cals Mon 06 Jan 2014, 14:41

privatisation rumour
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Posts : 25277 Credits : 57721 Reputation : 1766
Male Join date : 2011-09-08
Location : global
Comments : “My plan of trading was sound enough and won oftener that it lost. If I had stuck to it I’️d have been right perhaps as often as seven out of ten times.”
Stock Exposure : Technical Analysis / Fundamental Analysis / Mental Analysis

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