Eng Teknologi Rallies On Privatisation Talks
Eng Teknologi Holdings’ (Eng Teknologi) stock yesterday surged the most in 16 months, jumping RM0.19 to settle at RM1.99. This was following a surprise statement by the firm on the possibility of going private due to the unusual price movement and relatively heavy trading activity in its shares. However, there has not been any definitive proposal on the privatisation plan and the company will only disclose if there are other developments. The company last bought back its own 14,900 shares in October at RM1.83 each. In FY10, Eng Teknologi posted sales of RM557.27m and pre-tax profit of RM51.25m, an increase of 17.3% and 4.2% respectively from FY09.
Eng Teknologi Holdings’ (Eng Teknologi) stock yesterday surged the most in 16 months, jumping RM0.19 to settle at RM1.99. This was following a surprise statement by the firm on the possibility of going private due to the unusual price movement and relatively heavy trading activity in its shares. However, there has not been any definitive proposal on the privatisation plan and the company will only disclose if there are other developments. The company last bought back its own 14,900 shares in October at RM1.83 each. In FY10, Eng Teknologi posted sales of RM557.27m and pre-tax profit of RM51.25m, an increase of 17.3% and 4.2% respectively from FY09.
Significance: If privatisation does take place, the margins on Eng Teknologi’s shares will be thin as its book value per share as at end of last year was RM2.22, while its last traded price yesterday was RM1.99.
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