Straits Asia Resources: UBS & Macquarie has Buy Call with TP of $3.15 and $3.40 respectively. Note that PTT’s agreement to acquire 100% shares of Straits Resources Limited (Indirectly owns 29% in Straits Asia), implies a valuation of Straits Asia at $2.79. Add that despite recent share price outperformance, grp remains cheapest among its peers, trading at 8.6xFY11 P/E vs peers average of 13.5x….
Tips acquisition of Straits Resources Limited to remove significant overhang risk, and will enable Straits Asia to improve its capital base for potential acquisitons in the medium term.
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