Monday, November 8, 2010

Sunrise surges on takeover offer

KUALA LUMPUR: Shares of SUNRISE BHD [] surged in early trade on Monday, Nov 8 after it resumed trading following a'' conditional takeover offer from UEM Land Bhd at an offer price of RM2.80 per share.

At 9.02am, Sunrise was up 48 sen to RM3 with 4.49 million shares done. UEM Land advanced 11 sen to RM2.37 with 1.6 million shares transacted.

The FBM KLCI rose 6.53 points to 1,518.27. Turnover was 50.85 million shares done valued at RM52.40 million. There were 246 gainers, 22 losers and 91 stocks unchanged.

RHB Research said it was maintaining its Outperform on Sunrise Bhd with a revised fair value of RM3 (cum dividend basis of the offer price) following a notice of conditional takeover offer from UEM Land.

The research house said on Monday, Nov 8 that given that the offer involves share swap, the share price performance of Sunrise will largely depend on the price performance of UEM Land shares.

RHB Research said some weakness in share price may be expected after ex-dividend date, as some shareholders may not want to own UEM Land shares but would like to benefit from the dividend.

'We maintain our Outperform rating on the stock with a revised fair value of RM3 (cum dividend basis of the offer price),' it said.

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