KUALA LUMPUR, Sept 26 — MBSB Investment Bank Bhd (MBSB IB) has maintained a “Buy” call on Fraser & Neave Holdings Bhd (F&N), with an unchanged target price of RM32.08.
The rating follows F&N’s proposal to sell its entire 50 per cent stake in Vacaron Company Sdn Bhd to Tan & Tan Developments Bhd (TTDB), part of a plan to unlock value from non-core assets.
The disposal is expected to contribute RM83.2 million to the group.
Vacaron, a 50:50 joint venture with Frasers Property Holdings (Malaysia) Pte Ltd, owns a 5.15-hectare parcel of leasehold land in Section 13, Petaling Jaya, Selangor, earmarked for a mixed-use development.
MBSB IB views the sale positively, saying it allows F&N to focus on its core dairy and food and beverage operations, while providing an RM83 million liquidity boost and clearer visibility for investors.
“Importantly, it removes exposure to property development risks while providing fresh capital to accelerate dairy expansion,” the bank said.
“Over the longer term, growth will continue to be supported by resilient demand for beverages and food staples, alongside structural upside from the Gemas integrated dairy project.”
At 10.15 am, F&N shares were unchanged at RM27.26, with 1,600 shares traded.
