PERDANA (7108) - Potential general offer for Perdana Petroleum by Dayang
Friday, 27 March 2015
KUALA LUMPUR: CIMB Equities Research has advised investors to accumulate shares of Perdana Petroleum on the possibility of a general offer (GO) by its major shareholder Dayang Enterprise.
It said on Friday that armed with a fresh war chest, cash-rich Dayang raised its stake in Perdana to 29.9% last week, raising the possibility of a GO.
“Interestingly, we note that another major shareholder, Lembaga Tabung Haji (LTH), is likely to exit Perdana, which is no longer shariah-compliant.
“We continue to value the stock at 10.5 times CY16 price-to-earnings (P/E), still at a 30% discount to the oil & gas big caps. Perdana remains an Add and our top oil & gas small-cap pick, with the potential GO and an expanding fleet as the potential re-rating catalysts,” it said.
CIMB Research pointed out Perdana’s share price has jumped 18% since March 16, the day its major shareholder, Dayang, resumed purchasing Perdana shares after a hiatus of almost five months.
Dayang bought 11.5 million shares on March 16-18, taking its stake to 29.9%. Earlier, on March 12, Dayang completed a private placement of 52.1 million shares at RM3.37 a share, raising gross proceeds of RM176mil that were earmarked for “working capital and/or potential investment project(s)”.
CIMB Research said the synergies between the two companies are in the area of brownfield services, which require workbarges and workboats.
Perdana currently has five workbarges and a workboat deployed to Dayang on long-term charters. More than 70% of Perdana’s vessels are on long-term charters (FY13: 65%).
To recap, Perdana ended FY14 with a record net profit of RM88mil (+55% on-year), propelled by a higher average vessel utilisation rate of 91% (FY13: 80%).
The company has an order book of around RM1.1bil up to FY19, keeping its young fleet of 19 vessels, of which 17 are in operation, busy.
“We understand that LTH's average cost is around RM1.80 a share. At the current share price, LTH's stake is worth RM75mil. Should Dayang acquire LTH’s block entirely, a GO would be triggered. We advise investors to accumulate,” it said.
http://www.thestar.com.my/
Friday, 27 March 2015
KUALA LUMPUR: CIMB Equities Research has advised investors to accumulate shares of Perdana Petroleum on the possibility of a general offer (GO) by its major shareholder Dayang Enterprise.
It said on Friday that armed with a fresh war chest, cash-rich Dayang raised its stake in Perdana to 29.9% last week, raising the possibility of a GO.
“Interestingly, we note that another major shareholder, Lembaga Tabung Haji (LTH), is likely to exit Perdana, which is no longer shariah-compliant.
“We continue to value the stock at 10.5 times CY16 price-to-earnings (P/E), still at a 30% discount to the oil & gas big caps. Perdana remains an Add and our top oil & gas small-cap pick, with the potential GO and an expanding fleet as the potential re-rating catalysts,” it said.
CIMB Research pointed out Perdana’s share price has jumped 18% since March 16, the day its major shareholder, Dayang, resumed purchasing Perdana shares after a hiatus of almost five months.
Dayang bought 11.5 million shares on March 16-18, taking its stake to 29.9%. Earlier, on March 12, Dayang completed a private placement of 52.1 million shares at RM3.37 a share, raising gross proceeds of RM176mil that were earmarked for “working capital and/or potential investment project(s)”.
CIMB Research said the synergies between the two companies are in the area of brownfield services, which require workbarges and workboats.
Perdana currently has five workbarges and a workboat deployed to Dayang on long-term charters. More than 70% of Perdana’s vessels are on long-term charters (FY13: 65%).
To recap, Perdana ended FY14 with a record net profit of RM88mil (+55% on-year), propelled by a higher average vessel utilisation rate of 91% (FY13: 80%).
The company has an order book of around RM1.1bil up to FY19, keeping its young fleet of 19 vessels, of which 17 are in operation, busy.
“We understand that LTH's average cost is around RM1.80 a share. At the current share price, LTH's stake is worth RM75mil. Should Dayang acquire LTH’s block entirely, a GO would be triggered. We advise investors to accumulate,” it said.
http://www.thestar.com.my/
