KUALA LUMPUR: Share price of MAA HOLDINGS BHD [] eased 2.5 sen to 72 sen at the close of the morning trade on Wednesday, June 22.
There were 24.32 million shares transacted at prices ranging from 67 sen to 74.5 sen.
The FBM KLCI rose 1.75 points to 1,562.36. Turnover was 409.15 million shares done valued at RM577.20 million.'' There were 282 gainers, 331 losers and 324 stocks unchanged.
OSK Research said it was previously speculated that MAA would sell its 70% stake of its insurance business to Zurich Insurance Co. Ltd for RM1.2 billion, which was a very high price-to-book value of 6.8 times.
However, MAA instead sold 100% of the insurance business to Zurich at RM340 million or 1.36 times PBV, which triggered the price to fall by 30% on Tuesday.
OSK Research said nonetheless, closer inspection reveals that this should not lead to a downward rerating of the sector.
'With other deals having closed at 2.25 times and 3.35 times over the past six months, the low price for MAA was because it needed an injection of at least RM436 million to meet the minimum requirements under the Risk Based Capital Framework.
'If we include this additional RM436 million injection needed, MAA would be priced at 3.1 times PBV which would match the recent deals,' it said.
There were 24.32 million shares transacted at prices ranging from 67 sen to 74.5 sen.
The FBM KLCI rose 1.75 points to 1,562.36. Turnover was 409.15 million shares done valued at RM577.20 million.'' There were 282 gainers, 331 losers and 324 stocks unchanged.
OSK Research said it was previously speculated that MAA would sell its 70% stake of its insurance business to Zurich Insurance Co. Ltd for RM1.2 billion, which was a very high price-to-book value of 6.8 times.
However, MAA instead sold 100% of the insurance business to Zurich at RM340 million or 1.36 times PBV, which triggered the price to fall by 30% on Tuesday.
OSK Research said nonetheless, closer inspection reveals that this should not lead to a downward rerating of the sector.
'With other deals having closed at 2.25 times and 3.35 times over the past six months, the low price for MAA was because it needed an injection of at least RM436 million to meet the minimum requirements under the Risk Based Capital Framework.
'If we include this additional RM436 million injection needed, MAA would be priced at 3.1 times PBV which would match the recent deals,' it said.
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