Icar Asia has received a ‘competing’ indicative acquisition proposal from Malaysian based Carsome, pitched at $0.55 a share. This bid exceeds the $0.50 indicative bid received by Autohome Group in October 2020, and Morgans sees it as attractive to shareholders.
Catcha Group, the largest shareholder, has effectively becoming a ‘joint bidder’, after entering into an agreement to sell an initial 19.9% stake for Carsome stock, explains the analyst. The target moves to $0.50 from $0.38, factoring-in a 75% chance of the bid becoming final.
Morgans maintains a Hold rating.
Sector: Media.
Target price is $0.50.Current Price is $0.48. Difference: $0.02 – (brackets indicate current price is over target). If ICQ meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
