DRB-Hicom to gain RM735mil from Alam Flora stake sale

CIMB Equities Research has upgraded DRB-Hicom from Hold to Add with a higher target price of RM1.60

PETALING JAYA: DRB-Hicom Bhd is expected to make a gain of RM735.4mil from its proposed sale of Alam Flora Sdn Bhd (AFSB) to Malakoff Corp Bhd’s unit.

In its filings with Bursa Malaysia, the diversified conglomerate said its wholly owned subsidiary - Hicom Holdings Bhd - had entered into a conditional share sale agreement with Tunas Pancar Sdn Bhd to dispose of its entire 97.37% stake, or 74 million shares, in AFSB for RM944.6mil cash.