Monday 21 May 2012

KFC Holdings (KFC MK, NEUTRAL, FV: RM4.00, Last Price: RM3.84)


THE BUZZ
On 18 May 2012, KFC announced on Bursa Malaysia that it had entered into a Business Sale Agreement (BSA) and Property Sale Agreements with Triple Platform SB (TPSB), a wholly-owned subsidiary of Massive Equity SB (MESB) in relation to the Proposed KFC Disposal. The disposal consideration was determined based on the offer price of RM4/share and RM1/warrant. Upon completion, KFC will undertake to return the cash proceeds arising from the disposal to shareholders and warrant holders via  a  capital repayment exercise and warrant scheme respectively.

OUR TAKE
Sealing the deal. The disposal of the entire business and undertaking, including all the assets and liabilities of KFC to TPSB at an aggregate cash consideration of RM4/share and RM1/warrant,  will amount to RM3.2bn. TPSB is a wholly-owned subsidiary of MESB. The ultimate offerors for the KFC offer are Johor Corp (JCorp), the Employees Provident Fund (EPF) and CVC Capital Partners (CVC).  On 14 Dec 2011,  MESB proposed to buyout KFC at RM4/share and RM1/warrant.

Source: OSK

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