Stock Name: MAMEE
Company Name: MAMEE-DOUBLE DECKER (M) BHD
Research House: OSK
KUALA LUMPUR: OSK Research recommends that minority shareholders of Mamee-Double Decker accept the offer of RM4.39 per share under the proposed privatisation move by the major shareholders.
OSK Research said on Monday, April 11the offer price is attractive considering that this would be a good exit strategy for the remaining shareholders given that the stock's price performance could have been lackluster due to the potentially poor margins in the near term if not taken private.
'Also, a PE of 15x is only slightly lower than the PE of about 17x commanded by F&N, which is much larger than Mamee in terms of revenue and net profit. Hence, we recommend that investors accept the offer. Due to lingering concerns of margins pressure, we had a NEUTRAL recommendation on the stock at a FV of RM3.44 (based on 11x FY11 EPS) prior to the announcement. We raise our FV to the offer price of RM4.39. Upgrade to BUY,' it said.
Company Name: MAMEE-DOUBLE DECKER (M) BHD
Research House: OSK
KUALA LUMPUR: OSK Research recommends that minority shareholders of Mamee-Double Decker accept the offer of RM4.39 per share under the proposed privatisation move by the major shareholders.
OSK Research said on Monday, April 11the offer price is attractive considering that this would be a good exit strategy for the remaining shareholders given that the stock's price performance could have been lackluster due to the potentially poor margins in the near term if not taken private.
'Also, a PE of 15x is only slightly lower than the PE of about 17x commanded by F&N, which is much larger than Mamee in terms of revenue and net profit. Hence, we recommend that investors accept the offer. Due to lingering concerns of margins pressure, we had a NEUTRAL recommendation on the stock at a FV of RM3.44 (based on 11x FY11 EPS) prior to the announcement. We raise our FV to the offer price of RM4.39. Upgrade to BUY,' it said.
