Stock Name: SUNRISE
Company Name: SUNRISE BHD
Research House: RHB

KUALA LUMPUR: RHB Research is maintaining its Outperform on SUNRISE BHD [] with a revised fair value of RM3 (cum dividend basis of the offer price) following a notice of conditional takeover offer from UEM LAND HOLDINGS BHD [].

The research house said on Monday, Nov 8 that given that the offer involves share swap, the share price performance of Sunrise will largely depend on the price performance of UEM Land shares. Some weakness in share price may be expected after ex-dividend date, as some shareholders may not want to own UEM Land shares but would like to benefit from the dividend.

'We maintain our Outperform rating on the stock with a revised fair value of RM3 (cum dividend basis of the offer price),' it said.

Last Thursday, Sunrise has received a notice of conditional takeover offer from UEM Land to acquire all Sunrise shares at an offer price of RM2.80 per share to be satisfied in either of the following manner, at the election of shareholders:

(i) through the issuance of new ULHB shares at an issue price of RM2.10 each and Sunrise shareholders will receive about 1.33 ULHB shares for every share surrendered; or

(ii) through the issuance of redeemable convertible preference shares (RCPS) at an issue price of RM1.00 each and Sunrise shareholders will receive 2.80 RCPS for every share surrendered.