Hot Stock Damansara Realty rises 13% on talk of KFC takeover

by **Cals** Tue 06 May 2014, 17:28

Hot Stock Damansara Realty rises 13% on talk of KFC takeover

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Tuesday, 06 May 2014 15:11

KUALA LUMPUR (May 6): Damansara Realty Bhd (DBHD) rose as much as 13% on speculation that the firm, which has close links with the Johor royalty, will take over KFC Holdings (Malaysia) Bhd from Johor Corporation (JCorp), dealers said today.

DBHD officials could not be reached for comment.

At 2.57 pm, DBHD jumped 14 sen or 10.6% to RM1.46. The fourth top gainer saw some 9.7 million shares changed hands. It had earlier hit a high of RM1.49.

According to a dealer, DBHD might take over the ‘golden egg’ assets held by JCorp, such as KFC.

Johor businessman Datuk Daing A Malek Daing A Rahaman, who is well connected to the state royalty, has assumed control of DBHD via Seaview Holdings Sdn Bhd.

“We hear market talk that the Sultan of Johor views favourably on DBHD and is willing to inject KFC into the firm,” the dealer told theedgemalaysia.com.

On April 30, DBHD announced to Bursa Malaysia that Seaview had completed its acquisition of 51% of equity in DBHD from JCorp via a share sales agreement.

Daing A Malek is one the shareholders of Seaview.

Meanwhile, another dealer told theedgemalaysia.com that DBHD’s rise among the top gainers today could be due to a technical rebound.

“We think it is a technical rebound, although we have heard JCorp may inject assets into DBHD,” said the dealer over the telephone.

From a technical perspective, Kenanga Research in a note today said DBHD’s immediate support and resistance levels hover at RM1.32 and RM1.58 respectively.