Suncorp (SUN) and Promina (PMN) Shares Recommendation

Suncorp (SUN) and Promina (PMN) both have a retained Hold/Medium Risk shares recommendation and 12 month share price targets of $21 and $7.40 respectively from stock analyst Citigroup Investment Research (CIR). Independent Expert Grant Samuel on Suncorp's offer for Promina have commented that the offer is fair and reasonable. It values the consideration at A$7.10 to A$7.20 compared with its fair value of Promina inclusive of a control premium of A$6.46 to A$7.33 per share. Costs Down by A$40m — Suncorp has lowered its estimate of pre-tax integration costs from A$395m to A$355m, with a reduced estimate for IT spend. Suncorp has also confirmed a capital raising of more than A$1bn to part fund the cash component of the offer to Promina shareholders. The precise amount is expected to be around A$1.15bn. More detail on the likely sources for A$225m of pre-tax synergies has been provided though there is still no quantum assigned to each area. This appears to be because Suncorp has, to date, performed no more than a high level due diligence review of Promina. Proforma financials show a FY06 profit of A$1.4bn for the merged group and A$11bn of net assets.

Suncorp and Promina Limited are listed on the Australian Stock Exchange (ASX) under stock codes SUN and PMN respectively . You can view their investor website for Suncorp here and Promina here. Promina is involved in general insurance and financial services. Find out the meaning of the recommendations in this primer. PMN was listed on the ASX on 12 May, 2003. John Mulcahy is the CEO of Suncorp and John Story the Chairman. SUN was listed on the ASX on 7 July, 1988. Sun is involved in the provision of banking, insurance, superannuation and funds management products and services to the retail, corporate and commercial sectors. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade SUN and PMN. Check your charts and good luck with your share trading!