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Tuesday, August 6, 2013

Faber surges to RM2.34 on UEM Group plan (Star)

KUALA LUMPUR: Shares of Faber Group Bhd surged to RM2.34 on Tuesday as investors and analysts were upbeat on its prospects where it will undertake UEM Group's asset facility management businesses.

At 10.29am, Faber Group was up 54 sen to RM2.34. There were 17.78 million shares done.

The FBM KLCI fell 4.61 points to 1,780.53. Turnover was 378.25 million shares valued at RM340.58mil. There were 208 gainers, 229 losers and 265 counters unchanged.

To recap, UEM Group Bhd offered to dispose of its entire interest in Opus Group Bhd and Projek Penyelenggaraan Lebuhraya Bhd (Propel) to Faber Group for between RM1.13bil and RM1.15bil to streamline its asset facility management businesses under one entity.

RHB Research is maintaining a Buy recommendation on Faber Group with its sum-of-parts based fair value unchanged at RM2.34. "Based on valuations we deem fair, we advise shareholders to vote for the proposals as we see long term earnings accretion. We expect Faber's FY14 EPS to surge 46.5% on completion of the proposal. Maintain BUY and RM2.34 FV," it said.

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