February 24, 2011

PLUS - ECM maintains 'hold' call on PLUS

Stock Name: PLUS
Company Name: PLUS EXPRESSWAYS BHD
Research House: ECMLIBRA

ECMLibra Investment Research has maintained its 'hold' call on PLUS Expressways Bhd with a target price of RM4.60, reflecting the takeover offer price by UEM Group-Employees Provident
Fund (EPF).

In its research note today, ECM Libra said capital repayment of RM4.60 a share would be carried out in early September 2011.

Meanwhile, OSK Research Sdn Bhd said upon the disposal of its business to UEM-EPF, PLUS would return the proceeds to shareholders via a special dividend and capital reduction.

It said in its research note that at the current share price of RM4.44, there appeared to be a minimal upside of 3.6 per cent to the RM4.60 offer price.

The research house expected PLUS earnings, which were scheduled to be released today, to be in line with expectations.

The toll operator is forecast to post a net profit of RM1.254 billion on the back of RM3.366 billion in revenue for financial year ended 2010. -- Bernama

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