• After more than six years from its debut on Bursa Malaysia, homegrown white coffee manufacturer Oldtown Bhd was delisted on 4th April 2018 following its takeover by Jacobs Douwe Egberts (JDE) – the owner of several other notable coffee brands including Super, Tassimo and Kenco.

• To recap, the Dutch coffee maker made a buyout offer of RM1.47 bln (or RM3.18 per share) for the entire shareholding in Oldtown on 12th December last year, while stating its intent to delist and privatise the company upon the completion of the sale in order to gain greater control and management flexibility.

• Subsequently, we cease coverage on Oldtown in view of its delisting from Bursa Malaysia following the completion of the aforementioned acquisition. Our last recommendation was a Hold at target price of RM3.20, derived by ascribing a target PER of 22.0x to Oldtown’s FY19 EPS of 14.7 sen.

Source: Mplus Research - 5 Apr 2018