Company Name: KFC HOLDINGS (M) BHD
|Research House: MAYBANK||Price Call: HOLD||Target Price: 4.00|
Offer price is attractive. Following from our meeting with Massive Equity Sdn Bhd (MESB), the 51:49 joint venture between Johor Corp and CVC Capital Partners Asia III, management assures that there will be full distribution of proceeds up the chain to shareholders of Kulim from the acquisition of QSR's and KFC's assets/liabs and that the latter two companies will be delisted. We maintain that the proposed offer price of RM4/KFC share is attractive to shareholders, pricing the stock at a prospective 2012 PER of 19.4x, based on our forecasts.
Maybank research (16 December 2011)
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