Ni Hsin unaware of reasons behind unusual market activity

by **Cals** Sun 21 Sep 2014, 19:01

Business & Markets 2014

Written by Gho Chee Yuan of theedgemalaysia.com

Friday, 19 September 2014 14:35

KUALA LUMPUR (Sept 19): Ni Hsin Resources Bhd said it was not aware of the reasons behind the recent increase in its share price and volume.

In a reply to Bursa Malaysia's unusual market activity (UMA) query Friday, the cookware manufacturer said it was not aware of any corporate development or rumour relating to its business, that could have affected the movement in its share price.

"We wish to inform that one of the substantial shareholders of the company has disposed his shares," it said, citing an announcement made on September 19, 2014 in respect of Notice of Person Ceasing to be a Substantial Shareholder.

The company also refuted a report by The Edge Financial Daily on Friday that "Ni Hsin Resources Bhd may see a reverse takeover (RTO) by an oil and gas (O&G) outfit.

The filing said the board of directors is also not aware of the deal as reported which saying the target price is 70 sen per share.

The Edge Financial Daily had quoted a source as saying that Ni Hsin may see a reverse takeover (RTO) by an oil and gas (O&G) outfit.

The report went on to say that the target price was 70 sen per share, about 170% more than its net asset per share of 26 sen as at June 30.

The counter's share price has shot up 173% in the past two months. It also saw recent heavy trades.

"We (the Board of Directors) wishes to inform that it is not aware of the deal as reported," it said.

In a separate announcement, Ni Hsin said Hsiao Tsai Sheng, a Taiwanese businessman had ceased to be a substantial shareholder of the group after disposing 23.66 million shares on yesterday (Sept 18).

The filing, however, did not state price of the transaction. As at March 31 this year, Hsiao held an 11.73% stake in the group.

As of mid day, Shares of Ni Hsin was traded at 47 sen, up 0.005 sen or 1.08% with 26.69 million shares done.