SEG International Bhd's (SEGi) shares fell one sen to RM1.71 as at 3.45pm today on news the company has extended the privatization offer at RM1.714 a share from its major shareholder, Navis Capital Partners Ltd, to June 20, 2012.

OSK Research has maintained a 'buy' call on SEGi's shares with an unchanged fair value of RM2.19.

"We continue to like SEGi and believe the emergence of Navis Capital, which is now the single largest shareholder, will stir up trading interest in the company," it said in a research note today.

It said the final offer of RM1.714 per share fell short of its expectations as SEGi offered zero premium over the stock's last closing price of RM1.72.

"Given the unappealing valuation, which translates into 14 times financial year 2012 (FY12) price earnings ratio and 12.2 times financial year 2013 based on a fully enlarged share base vis-'-vis our fair value of RM2.19 at 18 times FY12 PER, we continue to advise minority shareholders to reject the offer," it said.

OSK Research said Navis Capital and founder/largest shareholder, Datuk Seri Clement Hii Chii Kok, held a combined 64.7 per cent stake of the company's outstanding shares and 80.6 per cent of its existing warrants.

"Assuming full conversion of the latter, both parties would hold a combined 67.1 per cent stake in SEGi's fully enlarged share base from 61.5 per cent registered prior to the offer.

"Given the low level of acceptance, we are not entirely surprised with the extension of the offer period and continues to believe that the two parties are unlikely to garner enough shareholders acceptance to reach the unconditional takeover threshold of 90 per cent," it said. -- Bernama