Amtek

Amtek: On its recently announced acquisition of US based Interplex Industry, CS too, thinks the miniature precision parts manufacturer complements Amtek, and guides revenue and operational synergies can be exploited through benefits of scale, integration and shared expertise. The deal will be funded by cash and debt, and highlights that it is EPS accretive. The acquisition is currently pending share holder’s approvals and expected to close in 1H15. Metcomp and StanChart Private Equity have provided an irrevocable undertaking to vote in favour of the acquisition. To recap, 2Q14 was a second consecutive y/y profit growth after 8 quarters of consecutive y/y declines, and the house remains sanguine on turnaround prospects in Amtek, and maintains O/PF rating, with TP of $0.64