Pos Malaysia will see an enhanced business and growth following DRB-Hicom Bhd's recent successful bid for a 32.21 per cent stake in it, says OSK Research.

'We see DRB-Hicom, which owns a 70 per cent of Bank Muamalat, as a good fit for Pos Malaysia as the former can leverage on the latter's network to enhance both operations and growth to make it more complete,' it said in a research note today.

It also said that although the offer price was unattractive and not reflective of the value of Pos Malaysia's related land, it still adequately reflects the company's postal business at 14.5x financial year 2011 price earnings ratio.

'Given that we see DRB-Hicom aiming to redevelop Pos Malaysia's land, we maintain our sum of the parts (SOP) derived fair-value of RM4.12, which includes the value of the five land plots directly owned the latter,' said OSK Research.

The acquisition price reflects RM17.3 million that is refundable if Pos Malaysia cannot secure the government's consent for commercial use of land leased to it by Dec 31, 2011, it said.

'While the share price may suffer some selling pressure in the short term, we maintain our 'buy' call on a potential longer term upside, arising from DRB-Hicom unlocking the land value,' OSK Research added. -- Bernama