FKP share price continues to tumble, making Aveo cheaper

This week Aveo’s parent FKP saw its share price hit 21 cents, down from 41 cents exactly 6 months ago – a 50% drop in value. See its chart opposite. The question is, how much longer can the likes of Stockland hold off making an offer given its first right of refusal for the Aveo crown jewels? Looking back to 2008, it is hard to believe that in January that year FKP was trading at $6.40. But then it dropped to 65 cents by 27 November (2008) and has never recovered. FKP continues to look for a new CEO to replace Peter Brown who retired on 14 September. The Executive Chairman Mr Seng Huang Lee and major shareholder in Malaysia’s Mulpha – FKP’s largest shareholder – is Acting CEO while Peter Brown’s replacement is being searched for.