RHB Group Research is reiterating its "buy" call on coffeeshop operator Kimly with a higher target price of 42 cents from 39 cents previously, following the group's announcement of its acquisition of a 75% stake in domestic food business Tenderfresh for $54 million, of which $16 million will be paid through a new share issuance at 31.24 cent per unit.
See: Kimly acquires 75% stake in Tenderfresh business for $54 mil
Analyst Jarick Seet says, "We believe that this acquisition is a positive, being both EPS-accretive and in
line with the company’s strategy. This should enable it to expand food concept offerings, and venture into restaurants and halal coffeeshops with high synergistic value."
For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)