KUALA LUMPUR: CB INDUSTRIAL PRODUCT HOLDING [] Bhd shares advanced in early trade on Thursday, June 2 after the company proposed to sell its entire equity interests in Sachiew PLANTATION []s Sdn Bhd and Empressa (M) Sdn Bhd for a total of RM268.06 million.
At 9.05am, CBIP rose 10 sen to RM4.36.
Sachiew is principally involved in the cultivation of oil palm and production of crude palm oil and palm kernel, while Empressa engages in the cultivation of oil palm and the operation of a palm oil mill.
CBIP said the gross proceeds of RM268.06 million from the disposal would be utilised for its working capital including for financing receivables, inventories, and repayment of bank borrowings.
Maybank Investment Bank Bhd Research said CBIP's proposed plantation disposal was positive as it unlocks value of its below-average plantation yielding estates; raising RM1.95 per share (RM268 million) in cash and making RM1.02 per share (RM141 million) in disposal gain.
'Post disposal, with potential net cash at 95sen per share, CBIP is looking for expansion opportunities, failing which it may return part of its cash as special dividends to shareholders.
'We maintain our earnings forecasts and target price of RM4.75 based on 7 times 2011 EPS for now,' it said.
At 9.05am, CBIP rose 10 sen to RM4.36.
Sachiew is principally involved in the cultivation of oil palm and production of crude palm oil and palm kernel, while Empressa engages in the cultivation of oil palm and the operation of a palm oil mill.
CBIP said the gross proceeds of RM268.06 million from the disposal would be utilised for its working capital including for financing receivables, inventories, and repayment of bank borrowings.
Maybank Investment Bank Bhd Research said CBIP's proposed plantation disposal was positive as it unlocks value of its below-average plantation yielding estates; raising RM1.95 per share (RM268 million) in cash and making RM1.02 per share (RM141 million) in disposal gain.
'Post disposal, with potential net cash at 95sen per share, CBIP is looking for expansion opportunities, failing which it may return part of its cash as special dividends to shareholders.
'We maintain our earnings forecasts and target price of RM4.75 based on 7 times 2011 EPS for now,' it said.
No comments:
Post a Comment