KUALA LUMPUR (July 9): Tenaga Nasional Bhd fell as much as 12 sen or 1% to RM12.48, on news former Integrax Bhd shareholders have filed lawsuits against the state-controlled utility.

Yesterday (July 8), Tenaga said Chan Kok Keong, Amin Halim Rasip and Nor'aini Hashim were taking legal action against Tenaga, following Tenaga's move to privatise port operator Integrax.

Today, Tenaga shares pared losses at RM12.56 at 12:30pm, with some 2.8 million shares done. For comparison, the KLCI was up 5.88 points or 0.3% at 1,695.83.

In a note today, AmResearch Sdn Bhd said besides management and legal expenses, the suits should not have a material impact on Tenaga's earnings.

AmResearch said it had maintained its income forecast for Tenaga, "pending further development of the case."

“We reiterate our buy call on TNB (Tenaga) with an unchanged discounted cash flow -derived fair value of RM16.40 per share, which implies an FY15F PE of 14.5 times,” said AmResearch.

At current prices, AmResearch said Tenaga shares were traded at a forward price-earnings ratio of 11 times. This is below the three-year average of 15 times.