Kenanga upgrades KLK's earnings over proposed acquisition of TSH units

KUALA LUMPUR: Kuala Lumpur Kepong Bhd's (KLK) proposed acquisition of stakes in two of TSH Resources Bhd's subsidiaries comes as a positive surprise as the purchase would see an increase in the group's planted area, says Kenanga Investment Bank Research.

"The proposed 90% interest each in FB and TSS would effectively increase KLK’s planted area by c.5% to 192.9k Ha (before PWS), which we believe is an effective utilisation of its large war chest (c.RM3.9b)," it said.