Supermax shares up after Bursa query reply

KUALA LUMPUR: Shares of glove maker Supermax rose at midmorning on Thursday after the group explained its RM78.41mil land purchase to Bursa Malaysia.
At 10.40am, its shares rose nine sen to RM2.82 with 3.62 million shares done between RM2.74 and RM2.85.
The FBM KLCI rebounded, up 2.15 points to RM1.784.64. Turnover was 469.51 million valued at RM356.6mil. There were 379 gainers, 162 decliners while 274 counters were unchanged.
The group had on Friday bought a 40.4ha land in Selangor  to build its integrated glove manufacturing complex.
Its unit Maxwell Glove Manufacturing Bhd had purchased the land from Dragonline Resources Sdn Bhd to house its “Supermax Business Park” which will consist of the largest manufacturing facility for Maxwell and other supporting glove manufacturing industries.   
In a reply to Bursa Malaysia’s query on Wednesday, the group said it has yet to know the net book value (NBV) of the land.
The group said the vendor has not made the NBV nor its latest audi-ted financial statements, according to its filing to Bursa.
“The purchase consideration was arrived at after due consideration of the market value of other tracts of freehold industrial land in the vicinity.
“There will be no significant impact on the group’s earnings and earnings per share for the financial year ending Dec 31, 2014 as Phase 1 of the Supermax Business Park will be under construction over the course of year 2014,” it said.