02 December 2010

E&O is the next take-over target?

The recent spate of mergers have been dominating the trading sentiment of local market, with IJM-MRCB, UEM Land-Sunrise, and Sunway-SunCity. Investors are wondering whether there is any mergers activities else, and the million-dollar question is "Who is the Next".

 Main factors of taking private...
  1. Undemanding valuation
  2. Strong branding
  3. A well-run and profitable company
Quayside (Seafront Resort Condominium) of E&O property development
 After screening through the list of property counters, E&O could potentially emerged as the next company of being privatized. The main reason being E&O's is trading at a huge discount to its revised net asset value (RNAV) of RM2.72* per share.

Other than that, E&O has a very good brand name in the premium market, having some prime land-bank in strategic locations (especially in Penang). Couple with its strong marketing acumen, this company fit nicely into the take-over picture currently.

Spicing it up, speculations to privatized E&O has emerged in one of the news portal few months ago, saying that the major shareholder of E&O would made an offer for the rest of the remaining shares he did not hold.

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