KUALA LUMPUR (Nov 12): Affin Hwang Capital Research has upgraded Cycle & Carriage Bintang Bhd (CCB) to “Buy’ at RM1.29 with a higher target price of RM2.20 (from 96 sen) after Jardine Cycle & Carriage Ltd, major shareholder of CCB extended a privatisation offer of RM90.6 million (or RM2.20/share) for the remaining 40.9%-stake through a selective capital reduction and repayment exercise.

In a note today, the research house said the privatisation exercise is a good opportunity for CCB’s shareholders to exit their investment.

“We deem the offer price of RM2.20/share attractive,considering that CCB is still loss making and likely to continue facing a challenging retailing environment in the next few years.

“We upgrade our target price and rating to reflect the privatisation offer,” it said.