This article first appeared in The Edge Financial Daily, on October 22, 2015.
NCB Holdings Bhd (-ve)
SHARES of NCB (Fundamental: 2.05/3, Valuation: 0.8/3) rose 0.7% to RM4.38 on heavy volume yesterday. The came after MMC Corp Bhd (MMC) proposed to acquire a further 53.42% stake in the company at RM4.40 per share on Monday.
The offer price, close to NCB’s 3-year high of RM4.63, values the port operator at a trailing P/E of 81.3 times. In comparison, peer Westports Holdings Bhd trades at a trailing P/E of 27.9 times.
The acquisition will raise MMC’s equity interest to 83.55% and MMC will be obliged to extend a mandatory general offer for the remaining 16.45% shares at RM4.40 per share. MMC does not intend to maintain NCB’s listing status.
NCB is involved in port operations through Northport in Port Klang and logistic operations through Kontena Nasional Bhd. Similarly, MMC owns Johor Port, Penang Port, the Tanjung Pelepas Port in Johor, and land transport company JP Logistics Sdn Bhd.