Wednesday, July 4, 2012

Perdana Petroleum, Wah Seong - Perdana Exits Petra Energy

Changing of the guard. Perdana Petroleum's exit from Petra Energy (PE) via the sale of its remaining 26.9% stake to Wah Seong Corp (WSC) for MYR96.9m (MYR1.68/share) is not unexpected. While this removes a source of earnings, Perdana is now a leaner organisation - making it a more interesting acquisition/merger candidate. For WSC, the deal is EPS-enhancing and allows it to expand horizontally in the O&G value chain. WSC remains a BUY with a MYR2.40 TP on FY13 PER of 13x. Perdana is a HOLD with a MYR0.55 TP on 0.6x PBV.

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Source: Maybank Research - 4 July 2012

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