KNM Group Bhd, a Malaysian oil and gas services provider, rose the most in almost seven months after a Goldman Sachs Group Inc. private equity fund joined the founder of KNM in a takeover bid that values the Malaysian oil and gas services provider at about $1 billion.
The stock surged 10 per cent to 82.5 sen at 9:05 a.m. local time in Kuala Lumpur, set for the steepest gain since July 15.
Founder and Managing Director Lee Swee Eng offers to buy out company at 0.90 ringgit per share, valuing the process equipment maker at RM3.6 billion.
Lee now owns 23.64 per cent of KNM.
“We believe the valuation is fair and a premium relative to the sectors FY10F PE of 8.8 times, as it reflects control premium of the M&A in Malaysia,” said HwangDBS Research in a note on Friday. - Bloomberg, Reuters
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Thursday 4 February 2010
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