Hunza Properties Bhd (+ve)
PENANG-based Hunza Properties (Hunza) (Fundamental: 1.7/3; Valuation: 1.2/3) is mainly involved in property development, property investment and construction. Properties under its belt include the Gurney Paragon mall and office tower. 

Yesterday, the stock surged as much as 11% to close at RM2.33 on its major shareholders’ intention to privatise the company. 

Together with friendly parties, Khor Teng Tong Holdings Sdn Bhd (KTTHSB) holds a combined 59% stake in the company. They have proposed to acquire the remaining 41% via a selective capital reduction and repayment exercise, and aim to delist the company.

Under the exercise, shareholders would receive a total capital repayment of RM230.7 million, or RM2.50 per share. Although the privatisation offer is at a 30% premium to Hunza’s average traded share price over the past six months, the offer price is 29% below its net assets per share of RM3.50 as at Dec 31, 2014. The stock’s trailing 12-month P/E is 11.1 times. 

This article first appeared in The Edge Financial Daily, on March 24, 2015.