IOI falls despite news on acquisition
IOI Corporation Bhd's (IOI) share price fell one sen to RM5.38 as at 10.21am today, despite news on its acquisition of a 40 per cent stake in Unico-Desa Plantation Bhd for RM397 million.
A total of 174,500 shares changed hands.
Kenanga Research said it was positive on the deal as IOI’s landbank will be increased by 13,660 hectares to 196,867 hectares.
"The news is positive, but the current low crude palm oil price, is capping IOI's upside potential," it said in a note today.
It said synergy can also be realised as both IOI and Unico have landbank in Kinabatangan and Lahad Datu, Sabah.
The research house maintained a "market perform" valuation on IOI's shares with a target price of RM5.40.-- Bernama