March 16, 2011

TIMECOM - HLIB maintains Buy on Time dotCom, keeps TP unch 95c

Stock Name: TIMECOM
Company Name: TIME DOTCOM BHD
Research House: HLG

KUALA LUMPUR: Hong Leong Investment Research (HLIB) is maintaining its Buy call on Time dotCom at 95 sen.

It said on Wednesday, March 16, that due diligence has been completed on the proposed acquisitions of GTL, GTC and AIMS.

It said the independent valuations performed by Pricewaterhouse Coopers Capital (PwC) on the acquiree companies resulted in a total acquisition value of between RM284m and RM347m.

'This was based on the income approach method and cross-checked with the market approach,' it said.

HLIB Research said Time dotCom and the transacting parties involved have reached a mutual agreement on the purchase consideration, which now amounts to RM322m ('RM17m or a -5% discount from RM339m previously).

This would be satisfied by RM88m in cash (previously RM90.9m) and RM234.0m in shares (previously RM248.1m). TDC is required to submit the draft circular on the acquisitions no later than 31 March 2011.

'We leave our forecasts and target price unchanged and maintain our Buy call on the stock pending the outcome of the proposed acquisitions,' it said.

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