Friday, December 10, 2010

Kulim slips to 8-day low, limited upside after takeover rejected

KUALA LUMPUR: Shares of KULIM (M) BHD [] fell in late morning on Friday, Dec 10 as the euphoria of the takeover of its subsidiary QSR BRANDS BHD [] fizzled out following the outright rejection by Kulim and QSR board.

At 11.46am, Kulim was down 22 sen to RM12.26, but off the earlier low of RM12.22.'' It is at its lowest since Nov 30's RM12.14.

QSR was unchanged at RM5.64 and KFC Holdings Bhd also flat at RM3.81.

The FBM KLCI shed 3.81 points to 1,518.01. Turnover was 629.79 million shares valued at RM896.58 million. Losers led gainers 359 to 247 while 262 counters were unchanged.

Shares of Kulim had rallied from RM9.70 on Oct 29 on expectations of a takeover.

On Nov 29, QSR Brands rejected a revised offer of RM6.70 proposed by KUB MALAYSIA BHD [] in collaboration with Idaman Saga Sdn Bhd and CVC Capital Partners Asia III Ltd.

QSR had then said it had decided to reject the offer, though it was higher than Idaman's original offer of RM5.61.

KUB had collaborated with Idaman Saga ' the vehicle of Tan Sri Halim Saad ' and CVC Capital Partners Asia III Ltd to extend a revised proposal to acquire all the business and undertakings of QSR and its subsidiaries at an indicative offer price of RM6.70 per share.

KUB holds the Yum! franchise for A&W in Malaysia and Thailand. CVC Asia III is affiliated to CVC Capital Partners, a leading global private equity firm with over US$43 billion in funds.

US-based private equity fund Carlyle had last week upped Idaman's offer to RM6.70 to take QSR private.


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