Positive if attempt to take
GENM private successful
Maintain BUY with higher SOTP-TP of MYR3.94 (+6%)
GENT made a conditional voluntary take-over offer (VTO) to GENM to
acquire the 2.87b (51%) shares in GENM it does not own for MYR2.35/shr
cash. At first glance, this deal does not appear favourable for GENT but
after taking into consideration the potential catalysts currently accruing
to GENM, we estimate that its earnings could be boosted by ≤51% and
SOTP-fair value to MYR4.25. For now, we raise our SOTP-TP to MYR3.94
(MYR3.70 previously) to account for a higher GENM SOTP-TP.