KUALA LUMPUR: Ambang Sehati Sdn Bhd's plan to acquire the remaining shares of 81.5 per cent in Bandar Raya Developments Bhd (BRDB)looks attractive, says AmResearch.
In a note today AmResearch said the takeover deal which involves a total consideration of about RM1.2 billion, will provide a 21 per cent upside to its fair value of RM2.40 per share and 22 per cent discount to an estimated fully-diluted net asset value (NAV) of RM3.70 per share.
It also said BRDB has always been trading at a steep discount of between 40 per cent - 50 per cent of its NAV, even in the recent property market boom.
"This is not surprising as the group has not been aggressive in new launches.
"Although the group has been active in landbanking over the past one year or so, it remains to be seen whether BRDB would time the market right in churning out its products.
"Also, the delay in disposal of its investment properties at Bangsar Shopping Centre, CapSquare Retail Centre, Menara BRDB and Permas Jusco Mall, may continue to be a drag to the stock's performance," AmResearch added.
The research house also put a "hold" call on the company at the fair value of RM2.40. -- BERNAMA
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