KUALA LUMPUR (Dec 13): The delisting of PLUS will return RM9.1 billion cash to minority shareholders after Dec 14, 2011 and this is likely to benefit several counters depending on the investment mandate of the shareholders, according to ECM Libra Research.
In a note Tuesday, the research house said the potential beneficiaries are counters like Maybank, Maxis, Telekom, Petronas Chemicals, RHB Capital, MISC, Public Bank, Digi, YTL Power, KLK, BAT, Petronas Dagangan, Petronas Gas, LITRAK, Air Asia, Bumi Armada and UEM Land.
ECM Libra said that if the mandate was for dividend yield, then stocks of decent size (more than RM10 billion market capitalisation) and dividend yield similar or better than PLUS would be the likes of Maybank (MAY MK, Hold, TP: RM8.00), Maxis, Telekom Malaysia, Petronas Chemicals, RHB Capital, MISC, Public Bank, Digi.Com, YTL Power, Kuala Lumpur Kepong (KLK MK, Hold, TP: RM21.75), British American Tobacco, Petronas Dagangan and Petronas Gas.
If the mandate was for concessionaire-type businesses, then similar stocks would be YTL Power and LITRAK, it said.
“If the purpose for holding PLUS was to benchmark against the FBMKLCI, then Air Asia, Bumi Armada and UEM Land were the three stocks that replaced PLUS, MISC and Gamuda in the FBM KLCI.
“However, the combined market capitalization of the new inclusions (Air Asia, Bumi Armada, and UEM Land) amounts to only RM32 billion compared to RM54 billion for the three that were removed (PLUS, MISC, Gamuda).
Hence, there will also be some redistribution to other FBM KLCI components to maintain a benchmark against the FBM KLCI, it said.
In a note Tuesday, the research house said the potential beneficiaries are counters like Maybank, Maxis, Telekom, Petronas Chemicals, RHB Capital, MISC, Public Bank, Digi, YTL Power, KLK, BAT, Petronas Dagangan, Petronas Gas, LITRAK, Air Asia, Bumi Armada and UEM Land.
ECM Libra said that if the mandate was for dividend yield, then stocks of decent size (more than RM10 billion market capitalisation) and dividend yield similar or better than PLUS would be the likes of Maybank (MAY MK, Hold, TP: RM8.00), Maxis, Telekom Malaysia, Petronas Chemicals, RHB Capital, MISC, Public Bank, Digi.Com, YTL Power, Kuala Lumpur Kepong (KLK MK, Hold, TP: RM21.75), British American Tobacco, Petronas Dagangan and Petronas Gas.
If the mandate was for concessionaire-type businesses, then similar stocks would be YTL Power and LITRAK, it said.
“If the purpose for holding PLUS was to benchmark against the FBMKLCI, then Air Asia, Bumi Armada and UEM Land were the three stocks that replaced PLUS, MISC and Gamuda in the FBM KLCI.
“However, the combined market capitalization of the new inclusions (Air Asia, Bumi Armada, and UEM Land) amounts to only RM32 billion compared to RM54 billion for the three that were removed (PLUS, MISC, Gamuda).
Hence, there will also be some redistribution to other FBM KLCI components to maintain a benchmark against the FBM KLCI, it said.
