Event
· We comment on the latest developments regarding paints demerger, which is set to occur from mid July, while trading in ICI Pakistan will cease from 21st June. Once trading begins from next month, the new paints company Akzo Nobel Pakistan will also be listed and current company’s capital will be reduced. We comment on the likely valuation of the separate companies, and at current price maintain our Neutral stance.
Target Price and Price catalyst
· Dec-12 price target: PKR132.2/share on account of DCF based methodology.
· Catalyst: Paints demerger and sale of existing company
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