Nishat Mills Limited (NML) has decided the offer price of Rs 19 per share for divestment of its 10 percent holding in Pakgen Power. As of June 30, 2010, NML holds 119.1 million shares (or a 32 percent stake) of Pakgen at Rs 13.9 per share. "As per our estimates, the transaction would lead to a one time gain of Rs 0.11 per share for NML in FY11", Bilal Qamar, an analyst at JS Global Capital said.
"However, the divestment would also cut our dividend expectation from Pakgen Power which will have a negative impact of Rs 0.05 per share, hence; we foresee a minimal cumulative incremental impact of Rs 0.06 on NML's FY11 earnings", he added. The scrip is currently trading at an FY11E PE of 6.8x.
Comments
Comments are closed.