Hot Stock MISC tumbles 15% on failed takeover

Hot Stock MISC tumbles 15% on failed takeover
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Monday, 22 April 2013 10:53


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KUALA LUMPUR (April 22 ): MISC BHD [] tumbled as much as 15% in morning trade after the shipping firm said the proposed takeover by of the firm by its controlling shareholder Petroliam Nasional Bhd (Petronas) at RM5.50 a share had failed.

At 10.43am, MISC was traded at RM4.74 with some 10 million shares done after falling as much as 80 sen to RM4.50. The fifth most-active stock was also the second-largest decliner across the bourse.

MISC said last Friday the takeover offer by Petronas had failed due to insufficient mandate from minority shareholders of MISC.

As at the revised closing date for the offer last Friday, Petronas had only secured 86% of MISC, below the 90% threshold for the exercise to be unconditional.

Analysts said the failed exercise shows that minority shareholders see value in MISC.

In a note today, HwangDBS Vickers Research Sdn Bhd research head Wong Ming Tek said the unsuccessful bid shows that dissenting minority shareholders of MISC are long-term investors who sees beyond the current weakness in petroleum and chemical tanker rates.

"Although there might be some immediate term share price weakness, Petronas’ initial offer at RM5.30 which was subsequently revised to RM5.50 sets a base value for the stock," Wong said.

HwangDBS Vickers has a "buy" call and target price of RM6.60 for MISC.