KUALA LUMPUR (April 3) : Shares of ALLIANCE FINANCIAL GROUP BHD [] (AFG) climbed as much as 1.3% on Tuesday morning following updates that Singapore-based DBS Bank Ltd plans to acquire state investment arm Temasek’s 14.2% stake in AFG. At 11.13am, AFG rose two sen to RM3.98 after reaching an intraday high of RM4.01.
In a note, RHB Research Institute Sdn Bhd said updates on DBS’ entry in AFG could generate interest in AFG shares.
This has prompted RHB to raise its target price for AFG by 10% from RM3.85 to RM4.25 and its recommendation for the stock from “underperform” to “market perform”.
“We believe there is a good chance of DBS acquiring Langkah Bahagia’s portion to raise its effective stake in AFG to more meaningful levels. DBS’ entry may also revive market talks about a potential M&A exercise with Hwang-DBS,” RHB said.
In a note, RHB Research Institute Sdn Bhd said updates on DBS’ entry in AFG could generate interest in AFG shares.
This has prompted RHB to raise its target price for AFG by 10% from RM3.85 to RM4.25 and its recommendation for the stock from “underperform” to “market perform”.
“We believe there is a good chance of DBS acquiring Langkah Bahagia’s portion to raise its effective stake in AFG to more meaningful levels. DBS’ entry may also revive market talks about a potential M&A exercise with Hwang-DBS,” RHB said.
