Stock Name: PLUS
Company Name: PLUS EXPRESSWAYS BHD
Research House: OSK
KUALA LUMPUR: OSK Research has revised the target price for PLUS Expressway Bhd's share price back to RM4.60 from RM5.20 after Jelas Ulung Sdn Bhd failed to make the RM50 million deposit as requested by PLUS,
PLUS had said only UEM Group Bhd and the Employees Provident Fund had remitted the cash deposit of RM50 million in their joint offer to take over for RM23 billion offer or RM4.60 per share. The deadline expired at 5pm on Monday, Jan 10.
OSK Research said on Tuesday, Jan 11 its target price is hence revised back to RM4.60 to reflect the UEM-EPF offer.
'We expect PLUS' share price to come under pressure today and could possibly fall to the RM4.36 level (-7%), which is the closing price before the Jelas offer was made.
'Our rating on PLUS is downgraded from Trading Buy to NEUTRAL,' it said.
OSK Research said the inability of Jelas Ulung to place the deposit implied that its offer is no longer valid. Apart from UEM-EPF, no other bidders deposited the RM50 million.
'While we were hopeful of the Jelas Ulung offer being pushed through, this sudden turn is not entirely surprising given the news flow following its offer. These include: (i) PLUS requiring a RM50 million deposit to be made, which is reimbursable without interest, and (ii) media articles highlighting that Bank Negara Malaysia may not approve Jelas Ulung's foreign currency credit from Bank of China to finance the acquisition,' it said.
Jelas had stated the unexpected new conditions set by PLUS had resulted in it having to make substantial adjustments to its original financial arrangements, which needs more time to sort.
Apart from financing, Jelas Ulung also said (i) there is need for more details apart from those published in the annual reports, and (ii) details on the basis for selecting the successful bidder.
Company Name: PLUS EXPRESSWAYS BHD
Research House: OSK
KUALA LUMPUR: OSK Research has revised the target price for PLUS Expressway Bhd's share price back to RM4.60 from RM5.20 after Jelas Ulung Sdn Bhd failed to make the RM50 million deposit as requested by PLUS,
PLUS had said only UEM Group Bhd and the Employees Provident Fund had remitted the cash deposit of RM50 million in their joint offer to take over for RM23 billion offer or RM4.60 per share. The deadline expired at 5pm on Monday, Jan 10.
OSK Research said on Tuesday, Jan 11 its target price is hence revised back to RM4.60 to reflect the UEM-EPF offer.
'We expect PLUS' share price to come under pressure today and could possibly fall to the RM4.36 level (-7%), which is the closing price before the Jelas offer was made.
'Our rating on PLUS is downgraded from Trading Buy to NEUTRAL,' it said.
OSK Research said the inability of Jelas Ulung to place the deposit implied that its offer is no longer valid. Apart from UEM-EPF, no other bidders deposited the RM50 million.
'While we were hopeful of the Jelas Ulung offer being pushed through, this sudden turn is not entirely surprising given the news flow following its offer. These include: (i) PLUS requiring a RM50 million deposit to be made, which is reimbursable without interest, and (ii) media articles highlighting that Bank Negara Malaysia may not approve Jelas Ulung's foreign currency credit from Bank of China to finance the acquisition,' it said.
Jelas had stated the unexpected new conditions set by PLUS had resulted in it having to make substantial adjustments to its original financial arrangements, which needs more time to sort.
Apart from financing, Jelas Ulung also said (i) there is need for more details apart from those published in the annual reports, and (ii) details on the basis for selecting the successful bidder.
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