Kim Eng (K50.SG) is last +12.6% at $3.03 on resuming trade after Maybank’s (1155.KU) US$1.4 billion ($1.82 billion) offer to buy the brokerage, still below the $3.10 per share offer price which values the brokerage firm at 1.9X book. 

 

A dealer at a local house says the stock will probably stay at the current levels ”until people can see whether Maybank can meet all the preconditions to make the offer unconditional. I think that’s quite likely as they have over 40%. It’s a lovely price to sell at as you can buy a bank stock at 1.3X to 1.5X book and you’re selling a broking house whose earnings are more volatile at 1.9X book, so they should be able to get enough to make the offer unconditional, above 50%.“ 

 

GK Goh (G41.SG) rises 7.2% to $0.815 in massive volume of over 1.8 million shares on hopes GK Goh Financial Services, its 100% owned futures and FX brokerage, may be an acquisition target like Kim Eng.