KUALA LUMPUR (Nov 17): The cautious market sentiment put the brakes on PROTON HOLDINGS BHD []’s share price rally on Thursday after it had gone into overdrive on speculation of a management buy-out (MBO).
At 11.40am, shares of the car maker fell 11 sen to RM3.42. There were 1.66 million shares transacted at prices ranging from RM3.42 to RM3.61.
CIMB Equities Research said speculation of a MBO may be behind Proton’s 31% share price surge since Monday.
“While management seems open to an MBO, we see pricing and financing as key hurdles to such a move. We retain our NEUTRAL recommendation. Our target price, which is pegged to a 0.4x P/BV (20% discount to the historical P/BV), is under review.
“An MBO might not help to address immediately the structural issues plaguing the company,” it said.
At 11.40am, shares of the car maker fell 11 sen to RM3.42. There were 1.66 million shares transacted at prices ranging from RM3.42 to RM3.61.
CIMB Equities Research said speculation of a MBO may be behind Proton’s 31% share price surge since Monday.
“While management seems open to an MBO, we see pricing and financing as key hurdles to such a move. We retain our NEUTRAL recommendation. Our target price, which is pegged to a 0.4x P/BV (20% discount to the historical P/BV), is under review.
“An MBO might not help to address immediately the structural issues plaguing the company,” it said.
