KUALA LUMPUR: Shares of PLUS EXPRESSWAYS BHD [] declined on resuming trade on Monday, Oct 18 after OSK Research said UEM and Employees Provident Fund's (EPF offer to acquire the business of PLUS for RM23 billion or RM4.60 a share is on the low side.
At 9,20am, PLUS was down five sen to RM4.41 with 7.77 million shares done. OSK Research said that the offer price was only a small 3% premium to its last traded price. Further, the offer is 5% lower than the research house's Free Cash Flow to Equity based target price.
"Amongst the minorities, KWAP [EPF] ' which holds a 5.5% stake ' could be aligned to the acquirers. We advise investors to reject the offer and feel that the RM4.80-5.00 range to be a fairer level," it said.
At 9,20am, PLUS was down five sen to RM4.41 with 7.77 million shares done. OSK Research said that the offer price was only a small 3% premium to its last traded price. Further, the offer is 5% lower than the research house's Free Cash Flow to Equity based target price.
"Amongst the minorities, KWAP [EPF] ' which holds a 5.5% stake ' could be aligned to the acquirers. We advise investors to reject the offer and feel that the RM4.80-5.00 range to be a fairer level," it said.
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