KUALA LUMPUR: OSK Research said DRB-Hicom announced that it has succeeded in its bid for Khazanah Nasional's 32.21% stake in Pos Malaysia for RM622.8m, or RM3.60 per share.
It said on Monday, April 25 the acquisition price reflects a RM17.3 million that is refundable if POS Malaysia cannot secure Government consent for commercial use of land leased to it by Dec 31, 2011.
OSK Research said DRB-Hicom, which owns a 70% of Bank Muamalat, was a good fit for POS Malaysia as the former could leverage on the latter's postal network to enhance both their operations and growth as a more complete network.
'Although we see the offer price as unattractive and not reflective of the value of POS Malaysia's related land, it still adequately reflects POS Malaysia's postal business at 14.5x FY11 PER.
'Given that we see DRB-Hicom aiming to redevelop POS Malaysia's land, we maintain our SOP derived FV of RM4.12, which includes the value of the 5 land plots directly owned by POS Malaysia.
'While the share price may suffer some selling pressure in the short term, we maintain our BUY call on potential longer term upside arising from DRB-Hicom unlocking the land value,' it said.
It said on Monday, April 25 the acquisition price reflects a RM17.3 million that is refundable if POS Malaysia cannot secure Government consent for commercial use of land leased to it by Dec 31, 2011.
OSK Research said DRB-Hicom, which owns a 70% of Bank Muamalat, was a good fit for POS Malaysia as the former could leverage on the latter's postal network to enhance both their operations and growth as a more complete network.
'Although we see the offer price as unattractive and not reflective of the value of POS Malaysia's related land, it still adequately reflects POS Malaysia's postal business at 14.5x FY11 PER.
'Given that we see DRB-Hicom aiming to redevelop POS Malaysia's land, we maintain our SOP derived FV of RM4.12, which includes the value of the 5 land plots directly owned by POS Malaysia.
'While the share price may suffer some selling pressure in the short term, we maintain our BUY call on potential longer term upside arising from DRB-Hicom unlocking the land value,' it said.
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