United Malacca's RM6.10 offer undervalues assets, says analyst
KUALA LUMPUR: United Malacca Bhd's conditional mandatory general offer (MGO) at RM6.10 per share undervalues its plantation landbank and potential asset monetisation opportunities.
KUALA LUMPUR - Analysts are criticizing United Malacca Bhd's RM6.10 per share conditional mandatory general offer (MGO) as undervaluing the company's assets. Ivy Ng Lee Fang of CIMB Securities Sdn Bhd stated the offer represents a mere 2.2 per cent premium to the company's previous closing price and values United Malacca at only 8.8 times its 2026 price-to-earnings ratio and 0.81 times its price-to-net asset value.
The offer, triggered by Prosper Trading Sdn Bhd's acquisition of a 13.44 per cent stake, implies an enterprise value of RM33,449 per hectare for the company's 2,834 hectares of plantation land in Melaka, Negri Sembilan and Segamat. Despite a net cash position of RM312.8 million, the offer fails to reflect the potential worth of these estates.
United Malacca Bhd maintains its Buy recommendation on the stock, with a target price of RM6.93, indicating a 13.6 per cent upside from the offer price.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
