OSK should worth RM 2.50 – 2.80 for the merger deal

We believe the so called merger will price OSK at RM 2.50 – 2.80 which has from here still got a strong upside.  The last merger with Maybank called off but it is likely this time given OSK owner is shown strong intend to sell.  We added OSK further to our existing holdings.

By either book ratio or PE of 13-15 times.  We believe OSK will be valued at RM 2.50. It is also more likely for RHB Cap to buy as it will assist RHB to start expanding itself to regional.