News As of
4th of June, the acceptance level for the unconditional take-over offer by
Pinnacle Heritage Solutions S/B stood at 64.33% and 63.70% for SEG ordinary
shares & warrants respectively.
In other words, the
offers merely received 0.36% and 16.91% acceptance rates from SEG ordinary and
warrant shareholders respectively. The
acceptance of the Offer has been extended from 6 June 2012 to 20 June 2012.
To recap, Pinnacle
Heritage Solutions S/B has tabled a cash offer price of RM1.714 and RM1.214 per
SEG Share and Warrant respectively on 25 April 2012.
Comments The
lacklustre response from the minority shareholders seems to echo our view of
the unattractive offer price.
Based on the above
uninspiring acceptance level trend, we reckon SEG stands a high chance of retaining
its listing status post offer.
Outlook Remains bright underpinned by more new programmes
to be introduced within this year (20-30 programmes) particularly from an increasing
number of SEG University College’s own home-grown programmes (e.g. medical sciences),
which enjoy higher margins compared to other programmes.
Forecast FY12-FY13E remains unchanged.
Rating Maintained OUTPERFORM but we recommend
minority shareholders to reject the GO of RM1.714.
Valuation No
change in our SEG’s fair value of RM2.19, based on a targeted FY12 PER of 12.5x
(+1SD). We understand that the consensus
is targeting a fair value of RM2.09 for SEG.
Risks High acceptance of the takeover offer will trigger
a successful delisting.
Source: Kenanga
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