April 18, 2011

PROTON - Proton a 'buy' on securing RM1.3b loan: MIDF

Stock Name: PROTON
Company Name: PROTON HOLDINGS BHD
Research House: MIDF

Proton Holdings Bhd is still a "buy" after the automotive manufacturer secured a RM1.3 billion syndicated loan deal from six lenders, said MIDF Research.

"The amount of financing secured by Group Lotus is within our expected debt-to-equity ratio of 0.3 times level.

"However, we understand its capital expenditure total commitment for the five-year turnaround plan is 480 million pounds (RM2.4 billion), which the secured funding, captured about 56 per cent of its total commitment," MIDF Research said in a research note today.

It did not rule out the possibility of a further fund raising exercise via a rights issue to meet the group''s total capital expenditure commitment. - Bloomberg

No comments:

Post a Comment