Stock Name: UMW
Company Name: UMW HOLDINGS BHD
A suitor for WSP. HDS's offer to buy WSP at USD0.60/shr values the stock at 0.5x book, 30% premium to yesterday's close of USD0.46 but 95% discount to its IPO price. Should the offer be accepted, UMW's 2012 earnings could improve by 8% (WSP is currently loss-making). UMW's minorities could be surprised with a special DPS of up to 8 sen, if the proceeds are fully distributed. For now, UMW remains a Hold with a RM6.10 target price, based on 11x 2012 EPS.
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Company Name: UMW HOLDINGS BHD
| Research House: MAYBANK | Price Call: HOLD | Target Price: 6.10 |
A suitor for WSP. HDS's offer to buy WSP at USD0.60/shr values the stock at 0.5x book, 30% premium to yesterday's close of USD0.46 but 95% discount to its IPO price. Should the offer be accepted, UMW's 2012 earnings could improve by 8% (WSP is currently loss-making). UMW's minorities could be surprised with a special DPS of up to 8 sen, if the proceeds are fully distributed. For now, UMW remains a Hold with a RM6.10 target price, based on 11x 2012 EPS.
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