Monday, September 2, 2013

China Minzhong: Don’t Mess With Bapak; Under Review

 MINZ SP | Mkt Cap USD579.2m | ADTV USD2.4m

Ø Indofood (which nows 44.1% of Minzhong) launched a MGO for the remaining shares of Minzhong on 2 Sep 2013 following Minzhong’s rebuttal on 1 Sep 2013. This effectively supersedes fraud concerns although they still exist and will provide a floor to the stock.
Ø Given the still huge uncertainties, accepting the offer would be the easiest thing to do. As analysts however, we want to stay in the game. This will not be our last report as we will continue to dig into Glaucus’ accusations, Minzhong’s rebuttal, Glaucus’s rebuttal to Minzhong’s rebuttal and more rebuttals and rebuttals to the rebuttals to come.
Ø Officially, our rating is kept at UNDER REVIEW. For investors with a low risk threshold, take the offer and cash out and switch to Sino Grandness, but for investors with a higher risk appetite, we would like to remind them that Indofood’s offer price could look cheap after all uncertainties are removed.

Click here for full report weibin@maybank-ke.com.sg

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