Stock Name: HLBANK
Company Name: HONG LEONG BANK BHD
Hong Leong Bank Bhd (HLB) (HLBK MK, Hold, TP: RM11.50) has entered into a sales agreement to dispose of its entire interest in MIMB Investment Bank Bhd for RM157.9m to Hong Leong Capital Bhd (HLC). In filings with Bursa Malaysia, HLB also said HLC had proposed to acquire its entire interest in Hong Leong Investment Bank Bhd (HLIB) for a sum equal to the net tangible asset of HLIB as at the date of completion of the sales agreement. Upon completion of the exercises, MIMB will cease to be a subsidiary of HLB and HLIB will become a wholly-owned subsidiary of HLB. The exercises are part of the plans to rationalise the investment banking businesses involving MIMB and HLIB. (StarBiz)
Comment: The sale consideration for MIMB of RM158m is insignificant relative to Hong Leong Bank's market cap of RM23bn. (Hon Sze)
Company Name: HONG LEONG BANK BHD
| Research House: ECMLIBRA | Price Call: HOLD | Target Price: 11.50 |
Hong Leong Bank Bhd (HLB) (HLBK MK, Hold, TP: RM11.50) has entered into a sales agreement to dispose of its entire interest in MIMB Investment Bank Bhd for RM157.9m to Hong Leong Capital Bhd (HLC). In filings with Bursa Malaysia, HLB also said HLC had proposed to acquire its entire interest in Hong Leong Investment Bank Bhd (HLIB) for a sum equal to the net tangible asset of HLIB as at the date of completion of the sales agreement. Upon completion of the exercises, MIMB will cease to be a subsidiary of HLB and HLIB will become a wholly-owned subsidiary of HLB. The exercises are part of the plans to rationalise the investment banking businesses involving MIMB and HLIB. (StarBiz)
Comment: The sale consideration for MIMB of RM158m is insignificant relative to Hong Leong Bank's market cap of RM23bn. (Hon Sze)
Source: ECM Newz Bits12 April 2012
No comments:
Post a Comment