MMC stock rises on favourable research report

Kuala Lumpur: UOB Kay Hian Research Malaysia puts MMC Corp as its top pick for its potential privatisation candidate list.

It said on Monday, MMC Corp is trading at up to a 40% discount to its consensus sum-of-the-parts valuation.

“Another alternative value-enhancing option is for MMC Corp to list its independent power producer (IPP) and port divisions, which could separately fetch values close to MMC’s market cap.

“Operationally, MMC should benefit from the rising manufacturing activities in Johor, given its vast landbank around the Senai Airport and the port of Tanjung Pelepas,” said the research house.

A news report said MMC is believed to have got the approval of Seaport Terminal Johore Sdn Bhd and Permodalan Nasional Bhd to undertake a capital reduction exercise that will ultimately lead to the company being delisted from Bursa Malaysia, something MMC has since denied.  [07/01/14]

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