MARKET DEVELOPMENT
IOI\'s Share Price Falls Despite News On Acquisition
IOI\'s Share Price Falls Despite News On Acquisition
03/10/2013 (Bernama) - IOI Corporation Bhd's (IOI) share price fell two sen to RM5.37 at the end of trading Thursday despite news on its acquisition of a 40 per cent stake in Unico-Desa Plantation Bhd for RM397 million.
A total of 3.79 million shares changed hands.
Kenanga Research said it was a positive deal as IOI's landbank will be increased by 13,660 hectares to 196,867 hectares.
"The news is positive, but the current low crude palm oil price is capping IOI's upside potential," it said in a note.
It said synergy can also be realised as both IOI and Unico have landbank in Kinabatangan and Lahad Datu in Sabah.
The research house maintained a "market perform" valuation on IOI's shares, with a target price of RM5.40.
A total of 3.79 million shares changed hands.
Kenanga Research said it was a positive deal as IOI's landbank will be increased by 13,660 hectares to 196,867 hectares.
"The news is positive, but the current low crude palm oil price is capping IOI's upside potential," it said in a note.
It said synergy can also be realised as both IOI and Unico have landbank in Kinabatangan and Lahad Datu in Sabah.
The research house maintained a "market perform" valuation on IOI's shares, with a target price of RM5.40.