ENG (8826)

From OSK 20.3.2012

Upgrade to BUY.We see Engtek's share price tracking closer to the offerprice of RM2.00/share. We advise thosewho own shares in the company to accept the new offer price as its valuation is stillattractive, or dispose of the shares should the market price get close to RM2.00/share. Hence, we are pegging our fair value at RM2.00, premisedon 1.2x FY12 P/NTA. Given the 13% upside to its last closing of RM1.77, we areupgrading our call from SELL to BUY. Note that our previous cautious stance wasin view of the potential of the entire exercise collapsing. With the latest revised offer, we are of the view that theprivatization initiative may just materialize´╗┐
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