Bursa Malaysia Stock Watch

KFC Holdings (Hold) Boards accepted offer

kltrader
Publish date: Thu, 22 Dec 2011, 10:56 AM
kltrader
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Accepts offer. KFC's board has accepted MESB's offer to take over KFC's assets and liabilities, and it does not intend to seek alternative bids. We maintain that the offer price of RM4.00 per KFC share is fair to minorities because it values KFC at a 2012 PER of 19.4x and 2.6x P/B, based on our forecasts. The high prospective PER is fair for an M&A involving an entire business - our previous fair value for KFC shares was RM3.12 based on DCF which implies 15x 2012 PER.

Maybank research (22 December 2011)

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