CGS-CIMB downgrades Penguin to 'hold' on potential privatisation

CGS-CIMB Research analyst Cezzane See has downgraded Penguin International to “hold” from “add” on its potential privatisation.

“We like Penguin as it is profitable, relatively cheap vs. domestic peers and in a net cash position. As we think most eyes will be on a potential privatisation, we lift our target price to the offer price of 65 cents per share,” writes See in a Feb 15 report.

On Jan 21, a consortium formed by Penguin’s executive chairman and managing director has offered 65 cents per share to shareholders in a conditional privatisation offer.