Good news is good budget -- no gst. For OSK to go up, up, OLH has to sell all RHB shares and give out cash distribution. Other than that sorry-lah OSK.
Kinda hard to expect any cash deal to seal the deal. At the end of the day, the valuation of the company should be reflected in OSK's share price. OSK/OLH benefits from the deal the same way you should. They don't get cash from the deal either...
“This is based on a benchmark price of RM7.27 per CIMB share and RM10.03 per RHBCap share; translating into price-to-book ratios as at June 30, 2014 of 1.7 times and 1.44 times for CIMB and RHBCap respectively,” said the banks in a joint statement today.
After the merger, CIMB shareholders will own 70% of the merged CIMB-RHB Group, and RHBCap shareholders the remaining 30%.
OSK is a cheaper proxy to RHB Cap as its stake in the latter is already worth RM2.27 vs. current share price of RM2.07. We estimate that based on HLIB’s target price of RM10.00 for RHB Cap, OSK could be valued at (after 10% holding company discount) RM2.63, if RHB Cap is valued at 1.5x P/B (RM10.72), OSK’s valuation (after 10% holding c ompany discount) could hit RM2.80.
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Xiaoxiao
69 posts
Posted by Xiaoxiao > 2014-10-08 21:29 | Report Abuse
OSK, RHBCAP, CIMB shares to be suspended tomorrow. What's going to happen next?
http://www.theedgemalaysia.com/business-news/310830-shares-of-cimb-rhbcap-mbsb-to-be-suspended-tomorrow.html