Eng Tek resumes upward trend on privatisation hopes

KUALA LUMPUR: Shares of ENG TEKNOLOGI HOLDINGS BHD [] resumed their upward trend again on Wednesday, July 20 as buyers pinned their hopes on a possible privatisation of the hard-disk drive manufacturer.

At 4.09pm, it was up 17 sen to RM2.16 with 2.14 million shares done.

The FBM KLCI rose 7.48 points to 1,563.12. Turnover was 640.62 million shares valued at RM959.35 million. There were 403 gainers, 295 losers and 309 stocks unchanged.

To recap, on Monday HwangBDS Investment Bank announced on behalf of Eng Teknologi that certain major shareholders of the company were in privatisation discussions.

However, the company had not received any definitive proposal.

The Edge FinancialDaily reported on Tuesday that the privatisation ncould send a signal that the hard disk drive (HDD) sector may finally be poised for a turnaround.

The increasing merger and acquisition interest suggests that there is value to be found among the country’s HDD component manufacturers, many of which are trading at low valuations after a major sell-off.