Feb 2, 2011

Asahimas up 15.38% on take-over rumor

Automotive and flat glass maker PT Asahimas Flat Glass Tbk (AMFG) today skyrocketed 15.38% to Rp5,250 after a market rumor said PT Astra International Tbk (ASII), auto maker, may consider to acquire the glass producer.
"I heard a market rumor saying Astra may consider Asahimas. This is why AMFG-coded stock surged 15.38%," a local fund manager today.
Referring to the closing price today, Asahimas's market capitalization was Rp2.28 trillion. With annualized earning of Rp693.3 per share, AMFG is traded at 7.57x price to earning ratio, which is currently cheap.
Asahimas's financial performance at end of September was hefty as well.
The company posted Rp1.72 trillion revenue, Rp303.48 billion operating profit, and Rp225.63 billion net income or Rp520 earning per share.
Chief Corporate Communication Astra Arief Isnanto said so far there is no talk about Asahimas proposed acquision in Astra International's board of director. "I haven't heard about such acquisition." However, he admitted that Asahimas is one of auto glass supplier for Astra Group.

Disclosure: No position at the stock mentioned above.

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