S$0.925-AMTK.SI
Standard Chartered Private Equity (SCPE) bought 500,000 Amtek shares in the open market on 17 June 2011, raising their holding from 28.3% to 28.4% or 154,066,673 shares.
The 500,000 shares represent 44% of that day’s trading volume when the shares traded between 91 cents to 92.5 cents.
During Amtek’s IPO in Dec ’10, SCPE had sold 115mln vendor shares at $1.30 each, raising them $150mln. In May 2007, they had spent $258mln to privatize the company.
SCPE’s 6-month moratorium just expired on 1 June 2011. Instead of selling down further to re-coup their cost, SCPE’s open market purchase provides some comfort as it signals that they remain confident in Amtek’s prospects.
While 500,000 is insignificant compared to their existing stake as well as the 115mln vendor shares that they sold during the IPO, it nevertheless represents a significant 44% of that day’s trading volume.
With Amtek currently trading 34% off its Jan ’11 all time high and 29% off its IPO price and with its valuations down to only 6-7x PE against growth of 20-25% and also providing a decent yield of 6+%, we maintain BUY.
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