KUALA LUMPUR: S P Setia’s proposed corporate exercise to acquire I&P Group and expand its land bank received support from investors when the stock resumed trading on Monday.
At 9.07am, the property company’s share price was up 20 sen to RM3.75. There were 241,200 shares done.
The FBM KLCI fell 0.28 of a point to 1,730.71. Turnover was 172.79 million shares valued at RM43.84mil. There were 162 gainers, 99 losers and 210 counters unchanged.
CIMB Equities Research is neutral on S P Setia’s plans to buy a 343 acre land bank in Bangi, Selangor and proposed purchase of I&P Group, a Permodalan Nasional Bhd (PNB) owned developer.
The research house said these are related-party transactions as PNB controls a 55% equity stake in S P Setia, 60% in the Bangi land and 100% in I&P.
“We are neutral on these proposals as we expect the transaction prices to be fair, based on prevailing market prices, since PNB is not allowed to vote on this deal.
“We maintain our EPS, Hold call, and TP (RM3.45), still based on a 25% discount to RNAV,” it said.
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