Stock With Momentum: Perdana Petroleum

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OFFSHORE marine services provider Perdana Petroleum (Fundamental: 1.3/3, Valuation: 1.4/3) rose as much as 2.7% on heavy volume after it received a mandatory general offer (MGO) from Dayang Enterprise Holdings Bhd. The stock remained unchanged at RM1.50 last Friday. 

The MGO was triggered after Dayang entered into a share sale agreement (SSA) with Affin Hwang Asset Management Bhd to acquire the latter’s 5.74% stake in Perdana, thereby raising its stake to 35.51%. 

Based on the listing requirements, Dayang is obliged to extend an MGO for all the remaining shares and warrants it does not already own at a cash consideration of RM1.55 per share and RM0.84 per warrant, respectively. 

Dayang’s subsidiaries are mainly involved in the oil and gas industry. Its stock trades at a trailing 12-month P/E of 13.0 times and 2.4 times book. By comparison, Perdana is trading at a P/E of 12.8 times and 1.71 times book.


This article first appeared in The Edge Financial Daily, on May 18, 2015.