Wednesday, August 29, 2012
Sakari: Offer has become unconditional after the grp it reached an agreements with sellers to acquire 51.8m shares, taking its stake in the co to more than 50% from 45.4% previously. CIMB says the offer price is attractive, representing a 28% premium over Fri’s close and 9% premium over SAR’s 52-wk VWAP. House advocate accepting the offer and expect the share price to rise to $1.90 once trading resumes. Add that the offer price is fair, translating into 15x CY12 P/E vs. the stock’s 14x historical average since its 2006 listing. The offer price is also generous vs house previous $1.00 target price (9x CY13 P/E, 1SD below its 3-year mean). Deem this an attractive exit opportunity as poor earnings prospects imply few re-rating catalysts in the medium term if not for this offer.