Sunway Bhd (5211) – Healthcare re-rating [$$bill]
Sunway Bhd (5211) – Healthcare re-rating Sunway could see some upside if research houses start raising the valuation of its healthcare business. Bloomberg reported today that Sunway is looking to sell a 20-25% stake in its healthcare unit that could fetch at least USD250 mil . That means: If a 20% stake is worth USD250 mil, 100% stake is worth USD1.25 bil. If a 25% stake is worth USD250 mil, 100% stake is worth USD1 bil. USD1 bil is about RM4.15 bil. That is much higher than the valuations given by some research houses, such as: Kenanga IB: RM1,788 mil Hong Leong IB: RM1,734 mil Affin Hwang IB: RM1,800 mil UOB Kay Hian: RM1,250 mil (See pics at bottom) Among the four above, Affin Hwang gave the highest valuation of RM1.8 bil. However, using that USD1 bil (RM4.15 bil) valuation, that’s still a surplus of RM2.35 bil or 42 sen per share (based on fully diluted no. of shares). 42 sen is equivalent to 30% of Sunway’s share price of RM1.40. The research houses a...