infolinks

Thursday, October 14, 2010

Batu Kawan 'compelling privatization target'

Batu Kawan Bhd, the biggest shareholder in Malaysian palm oil producer Kuala Lumpur Kepong Bhd, is a “compelling privatization target” and its shares could be worth RM18.02 each, according to CIMB Investment Bank Bhd.

Shares of Batu Kawan are trading at a “hefty” 40 per cent discount to the share price estimate at CIMB, analyst Ivy Ng Lee Fang said in a report today.

Batu Kawan’s stake in Kuala Lumpur Kepong is worth 56 per cent more than the company’s market value, Ng said.

The stock climbed 3.4 per cent to RM14 at 9:26 a.m. in Kuala Lumpur trading, set for a record close. -- Bloomberg


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