Skip to main content
Privatisation And M&A Activity

Following the blog on the same topic last week, the privatisation / M&A juggernaut seem to be gaining fervour. First the rumoured Esso Malaysia, then an actual bid by QSR for KFC, and then Intan Utilities. Rather than focus on those, it might be good to look at other likely potentials, it is not a coincidence that the bulk of the concentration will be in banks:

1) RHB Capital - The debate continues with respect to the pricing for RHB Capital. While many analysts peg a likely buyout price at RM3.30-3.40, there are good reasons that the buyout price could even be higher (current price RM2.60), closer to RM4.00 owing to the implied pricing betwwen RHB and Utama.

2) Affin/Boustead - Not a particularly well managed bank but Boustead should be asking for at least RM2.10 (current price RM1.70). This will also boost Boustead's RNAV from the present RM2.82 to RM3.00. Boustead's pretty illiquid and now trades at RM1.86. Could be interesting should the Esso Malaysia deal materialises as well, but that's an IF.

3) EON Capital - DRB-Hicom should be looking to sell its 20% stake in Eon Capital. A price for a sale is pegged at RM8.00-RM8.40 a share (currenct price of Eon Capital is RM5.70). DRB-Hicom will then see its RNAV rise from RM2.20 to RM2.40, but bearing in mind that it currently already trades at a deep discount to RNAV at RM1.40, I am not sure if a sale of EON Capital will even move DRB-Hicom's share price much.

Of course, these stocks would not move in the direction suggested until a concrete deal has been struck. But should volume activity jumps consistently, then at least we can have a headstart in assessing their likely target prices.


Popular posts from this blog

My Master, A National Treasure

REPOST:  Its been more than two years since I posted on my sifu. This is probably the most significant posting I had done thus far that does not involve business or politics. My circle of close friends and business colleagues have benefited significantly from his treatment.

My Master, Dr. Law Chin Han (from my iPhone)

Where shall I start? OK, just based on real life experiences of those who are close to me. The entire Tong family (Bukit Kiara Properties) absolutely swear that he is the master of masters when it comes to acupuncture (and dentistry as well). To me, you can probably find many great dentists, but to find a real Master in acupuncture, thats a whole different ballgame.

I am not big aficionado of Chinese medicine or acupuncture initially. I guess you have to go through the whole shebang to appreciate the real life changing effects from a master.

My business partner and very close friend went to him after 15 years of persistent gout problem, he will get his heavy attacks at least…

PUC - An Assessment

PUC has tried to reinvent itself following the untimely passing of its founder last year. His younger brother, who was highly successful in his own right, was running Pictureworks in a number of countries in Asia.

The Shares Price Rise & Possible Catalysts

Share price has broken its all time high comfortably. The rise has been steady and not at all volatile, accompanied by steady volume, which would indicate longer term investors and some funds already accumulating nd not selling back to the market.

Potential Catalyst #1

The just launched Presto app. Tried it and went to the briefing. Its a game changer for PUC for sure. They have already indicated that the e-wallet will be launched only in 1Q2018. Now what is Presto, why Presto. Its very much like Lazada or eBay or Alibaba. Lazada is a platform for retailers to sell, full stop. eBay is more for the personal one man operations. Alibaba is more for wholesalers and distributors.

Presto links retailers/f&b/services originators with en…

How Long Will The Bull Lasts For Malaysia

Are we in a bull run? Of course we are. Not to labour the point but I highlighted the start of the bull run back in January this year... and got a lot of naysayers but never mind:

p/s: needless to say, this is Jing Tian ... beautiful face and a certain kind of freshness in her looks and acting career thus far

I would like to extend my prediction that the bull run for Bursa stocks should continue to run well till the end of the year. What we are seeing for the past 3 weeks was a general lull where volume suddenly shrunk but the general trend is still intact. My reasons for saying so:

a) the overall equity markets globally will be supported by a benign recovery complemented by a timid approach to raising rates by most central banks

b) thanks to a drastic bear run for most commodities, and to a lesser extent some oil & gas players, the undertone for "cost of materials" have been weak and has pr…