KUALA LUMPUR: RHB Research Institute said with the possibility of a bidding war and further news flow expected, it maintains its Trading Buy call on PLUS Expressways with an unchanged fair value of RM5.20.
The research house said on Monday, Jan 10 that the FV of RM5.20 was based on the most recent takeover offer which was made by Jelas Ulung.
'At RM5.20, PLUS is valued at a 20% premium to our NPV estimate of RM4.33 based on DCF,' it said.
RHB Research was commenting on news reports that MMC Corp may make comeback bid for PLUS as the third bidder.
The media also speculated that Jelas Ulung's RM26 billion (or RM5.20 a share) takeover bid may be blocked by Bank Negara Malaysia (BNM) on concerns that a large inflow of US$-denominated debt to fund the buyout of PLUS could destabilise the economy, for fear of a repeat of the 1997 Asian financial crisis.
'It is uncertain whether BNM would intervene, but we understand that it is within the central bank's purview to do so according to the Foreign Exchange Administration rules.
'We reiterate our view that a revised and improved offer from UEM-EPF is possible to placate minorities, despite our initial understanding that government funds which hold large minority stakes are already likely to vote in favour of UEM-EPF's RM23 billion (RM4.60/share) offer,' it said.
The research house said on Monday, Jan 10 that the FV of RM5.20 was based on the most recent takeover offer which was made by Jelas Ulung.
'At RM5.20, PLUS is valued at a 20% premium to our NPV estimate of RM4.33 based on DCF,' it said.
RHB Research was commenting on news reports that MMC Corp may make comeback bid for PLUS as the third bidder.
The media also speculated that Jelas Ulung's RM26 billion (or RM5.20 a share) takeover bid may be blocked by Bank Negara Malaysia (BNM) on concerns that a large inflow of US$-denominated debt to fund the buyout of PLUS could destabilise the economy, for fear of a repeat of the 1997 Asian financial crisis.
'It is uncertain whether BNM would intervene, but we understand that it is within the central bank's purview to do so according to the Foreign Exchange Administration rules.
'We reiterate our view that a revised and improved offer from UEM-EPF is possible to placate minorities, despite our initial understanding that government funds which hold large minority stakes are already likely to vote in favour of UEM-EPF's RM23 billion (RM4.60/share) offer,' it said.
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