Published: Thursday November 1, 2012 MYT 11:27:00 AM
Updated: Thursday November 1, 2012 MYT 11:36:54 AM
Aeon dips as parent buys Carrefour operations in Malaysia
KUALA LUMPUR: Shares of Aeon Malaysia rose to a high of RM12.54 on Thursday before declining as investors awaited more details from its parent's acquisition of Carrefour Malaysia's operations for an enterprise value of 250mil (RM990.19mil).
At 11.11am, Aeon was down two sen to RM12.46. There were 235,100 shares done at prices ranging from RM12.46 to RM12.54.
Aeon Credit was up four sen to RM12.
The FBM KLCI rose 1.27 points to 1,674.34. Turnover was 717.40 million shares valued at RM458.71mil. There were 261 gainers, 254 losers and 280 counters unchanged.
Carrefour, which is Malaysia's fourth-largest retailer with 26 hypermarkets, announced on Thursday it is selling its Malaysian operations to Japan's Aeon Co. Ltd.
Carrefour, which set up its Malaysian operations in 1994, recorded net sales of 400mil over a 12-month period to June 30, 2012.
Meanwhile, MIDF Research is maintaining its Neutral recommendation on Aeon with a revised target price of RM12.10
"Aeon may turn around Carrefour's loss-making stores. Aeon Malaysia's revenue has been on a steady upward trend, growing at a CAGR of 9.6% for the 5-year historical period of FY07 - FY11.
"The company operates under two segments, that is retailing and property management, which have been historically profit making with a CAGR of 9.2%. With their stellar record, we are sanguine that Aeon Malaysia will be able to turnaround Carrefour's loss-making Malaysian operations," said MIDF Research.