OSK Research Sdn Bhd has upgraded Eng Teknologi Holding Bhd (EngTek), a hard disk drive (HDD) component maker, to 'trading buy' at a revised fair value of RM2.30 from RM1.73 previously.
In a research note today, OSK said EngTek had announced it has been notified by certain existing major shareholders that they were currently in discussions on a corporate scheme which may lead to the company''s privatization.
"The details are scant at this juncture but we expect to see increasing news flow on the potential privatization offer, which may lift trading sentiment on the stock," it said.
OSK said the deal would most likely involve a privatization offer tabled by the founding members, namely Datuk Teh Yong Khoon (EngTek chief executive officer) and his family.
"The Teh family is the single largest shareholder with a collective stake of 35 per cent, followed by Permodalan Nasional Bhd at 15 per cent and Lembaga Tabung Haji at eight per cent," it said. -- Bernama
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