Tuesday, July 5, 2011

C.I. Holdings advances in early trade

KUALA LUMPUR: ''C.I. HOLDINGS BHD [] shares rose in early trade on Tuesday, July 5 following reports that Asahi Group Holdings'' Ltd'' of'' Japan'' was'' in'' talks with'' CI'' Holdings'' (CIH)'' over'' the'' purchase'' of'' its'' subsidiary, ''Permanis Sdn Bhd for US$200 million (RM600 million).

At 9.05am, C.I. Holdings added 14 sen to RM3.44 with 91,400 shares done.

MIDF Research in a note said it had been reported that that Asahi ''had'' been'' eyeing'' Permanis'' (which'' is'' PepsiCo'' Inc's'' bottler'' in ''Malaysia)'' to expand and drive stronger growth'' for'' its business ''and increase its presence in the global market.

The research house reiterated its BUY recommendation on CIH with an unchanged target price of RM3.92, implying a PER12 of 13 times.

'We believe CIH's valuation is still attractive as it is currently trading at a steep 31.55 discount to F&N's valuation of 19 times PER,' it said.

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