Maybe market too bull......they just need to throw one article on thestar then attract enough retails to buy from them at high price lo. The syndicate shd be TheStar then!!!
By Doreen Leong Focus Malaysia Friday, 27 Dec 2013, 12:00 AM -
Sabah based plantation company Kretam Holdings Bhd, looking at improving its liquidity, could be a takeover target following the recent buying spree of plantation assets in Sabah by Peninsular Malaysia-based companies.
According to sources, the company interested in Kretam is a major plantation player and the price should be substantially higher than its current share price of RM3.77. Kretam’s estimated net asset value is between RM4 and RM4.30 a share, based on recent transactions of plantation land in the state.
Based on the RM3.77 price traded on Dec 26, the company has a market capitalisation of RM1.38 bil. This is double its low of RM1.89 on May 3. Kretam CEO Datuk Freddy Lim bought additional shares in June at an average price of RM2.10 a share, raising his stake to 50.4% from 48.4% in December 2012.
This year, there has been a spike in interest in Sabah-based plantation companies, with three peninsula-based plantation companies on the acquisition trail. They are IOI Corp Bhd, Boustead Holdings Bhd and Felda Global Ventures Holdings Bhd (FGV).
In July, FGV paid RM1.2 bil for Pontian United Plantations Bhd’s 16,187ha of oil palm estate and announced the acquisition of a 95% stake in a plantation firm, which operates 8,193ha of oil palm plantation in West Kalimantan. IOI Corp Bhd proposed to acquire Unico-Desa Plantations Bhd’s 13,660ha near Lahad Datu for RM1 bil in October, while Boustead is acquiring 2,409.8ha of leasehold land in Lahad Datu for RM184.59 mil in cash. -------------------------------- At current price of 61.5 sen the market capitalisation is only RM 1.15 bil. Compare against Dec 26 market capitalisation of RM 1.38 bil. According to Kretam management the current market value of kretam should be in excess of RM 2.0 bil. IOI, FGV and Boustead have every reason to take control of this company esp when it is located in Sabah.
This is one hell of a under-rated counter, no one is promoting this counter and most retail players tend to go for other bigger player like JTIASA, SOP and etc.
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Posted by TKSB > 2014-04-29 10:47 | Report Abuse
amasser, lu wu sapu bo?