AMMB Holdings (Company Update): No impact from acquisition of Kurnia Insurans

Stock Name: AMMB
Company Name: AMMB HOLDINGS BHD

Research House: ECMLIBRA

Price Call: HOLD

Target Price: 5.70

Maintain HOLD, TP: RM5.70

AMMB is acquiring Kurnia Insurans to have the largest general insurance and motor insurance company in Malaysia. Estimating the borrowing cost to be incurred to fund the acquisition, and AMMB's share of net profit from Kurnia Insurans, we find that the net impact on AMMB's earnings is immaterial. Hence, we are not revising our earnings forecasts, valuation nor HOLD recommendation for AMMB. (refer to report for details)

Source: ECM Newz Bits13 April 2012, Full PDF Report