"We are positive over the shares acquisition, as Yee Lee’s position in Spritzer has been beneficial to the Group. This is reflected in the growing profit contributions and long-standing compatibility in their trading relationship," it said.
To recap, the shares were acquired at RM2.35 a share through an off-market transaction with Datuk Lim Kok Boon, a director and shareholder of Spritzer.
PublicInvest deemed the purchase price reasonable,representing a 0.4% premium to the share's five-day volume weighted averge price of RM2.34 up until Aug 29.
The research house said the purchase would have minimal impact to its earnings forecast at 0.1% with a marginal 0.4% positive increase to its target price.
PublicInvest maintained its outperform rating gon the stock with a target price of RM2.58.