Stock Name: SPSETIA
Company Name: SP SETIA BHD
Hong Leong Investment Bank Research has maintained a "hold" call on SP Setia Bhd with a revised target price of RM3.95 from RM3.90 previously.
The research division of Hong Leong Investment Bank Bhd (HLIB) said the higher target price followed the move by SP Setia CEO Tan Sri Liew Kee Sin and Permodalan Nasional Bhd (PNB) to revise their offer for shares in the company to RM3.95 a piece.
"We understand that the joint offer was arrived at following six to eight weeks of intense discussions between Liew and PNB.
"Also, PNB intends to maintain the listed status of SP Setia and its public spread," it said in a research note today.
It said the the most important part of the offer was a three-year management agreement for Liew to have a free hand in running SP Setia.
"We welcome this news as it removes uncertainty over the future of SP Setia, particularly with regards to Liew's involvement.
"With the entry of PNB, we believe SP Setia will stand a better chance than ever of obtaining a substantial allocation of Rubber Research Institute (RRI) land in Sungai Buloh," HLIB Research said. -- BERNAMA
Company Name: SP SETIA BHD
| Research House: HLG | Price Call: HOLD | Target Price: 3.95 |
Hong Leong Investment Bank Research has maintained a "hold" call on SP Setia Bhd with a revised target price of RM3.95 from RM3.90 previously.
The research division of Hong Leong Investment Bank Bhd (HLIB) said the higher target price followed the move by SP Setia CEO Tan Sri Liew Kee Sin and Permodalan Nasional Bhd (PNB) to revise their offer for shares in the company to RM3.95 a piece.
"We understand that the joint offer was arrived at following six to eight weeks of intense discussions between Liew and PNB.
"Also, PNB intends to maintain the listed status of SP Setia and its public spread," it said in a research note today.
It said the the most important part of the offer was a three-year management agreement for Liew to have a free hand in running SP Setia.
"We welcome this news as it removes uncertainty over the future of SP Setia, particularly with regards to Liew's involvement.
"With the entry of PNB, we believe SP Setia will stand a better chance than ever of obtaining a substantial allocation of Rubber Research Institute (RRI) land in Sungai Buloh," HLIB Research said. -- BERNAMA
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