March 23, 2010

KNM - Price Target News

Stock Name: KNM
Company Name: KNM GROUP BHD
Research House: RHB

KUALA LUMPUR: RHB Research says the delay in BlueFire Capital Group Ltd's acquisition of KNM GROUP BHD [] would highlight the risk of the buyer looking at withdrawing its offer or lowering the offer price. It said on Tuesday, March 23 the buyer might look at withdrawing its offer or lowering the offer price given KNM's poor 4QFY09 results. It has a market perform with a fair value of 90 sen. On Monday, KNM said it was not extending the exclusivity period for due diligence granted earlier to BlueFire Capital Group Ltd, a company controlled by KNM group managing director Lee Swee Eng. BlueFire, together with GS Capital Partners VI Fund LP and Mettiz Capital Ltd had proposed to take over KNM for RM3.5 billion. However, they target to conclude talks by April 16, 2010.

No comments:

Post a Comment