AMRESEARCH Sdn Bhd has kept its “buy” call on DRB-HICOM Bhd, with an unchanged fair value of RM3.60 per share with a 15 per cent discount to its standard operating procedure value of RM4.25 per share.
The research house said in its note that
it remained neutral on the company’s
recent development, which includes an
announcement on its insurance arm Uni.Asia Capital Sdn Bhd disposal of its entire 68.1 per cent stake in Uni.Asia General Insurance Bhd (UAG) to Liberty Seguros, Compania de Seguros y Reaseguros, S.A. (Liberty Seguros) for RM374.5million in cash.
The disposal would result in profoma gain of RM61.6 million.
The group’s expansion plan overseas failed to excite the research house.
DRB-HICOM holds a 51 per cent stake in Uni.Asia Capital, while United Overseas Bank (Malaysia) Bhd owns the balance 49 per cent.
Thus, effectively, DRB-HICOM owns 34.73 per cent of UAG.
