Bumi Armada up by 3.1% on links to Indian billionaire

by **Cals** Mon 21 Sep 2015, 19:59

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[size=28]Bumi Armada up by 3.1% on links to Indian billionaire

By Supriya Surendran / theedgemarkets.com | September 21, 2015 : 11:32 AM MYT

KUALA LUMPUR (Sept 21): Global floating production, storage and offloading (FPSO) player Bumi Armada Bhd ([You must be registered and logged in to see this image.]Valuation: 1.20, Fundamental: 0.55) saw its share price rise as much as 3 sen or 3.1% this morning to RM1.01, on news Indian billionaire Shapoor Pallonji Mistry could be buying into the company.

According to a report in digitaledge Weekly’s Sept 21-27, 2015 edition, the presence of Shapoor who has been a non-independent, non-executive director of Bumi Armada since October last year, has led to speculation the billionaire could be buying into the company.

The report stated that Shapoor, 50, is the son of India’s fourth richest individual, Pallonji Mistry, and is the chairman ofForbes &Co Ltd — a publicly traded counter on the Bombay Stock Exchange, as well as the chairman of Eureka Forbes Ltd and Shapoorji Pallonji and Co Pte Ltd — the flagship of the Shapoorji Pallonji Group.

The diversified Indian business group has interests in construction, real estate, textiles, engineering goods, home appliances, shipping, publications, power and biotechnology, to name a few, and has operations across India, West Asia and Africa.

"Talk of Shapoor taking control of Bumi Armada from Malaysian tycoon T Ananda Krishnan, who has a 34.9% equity interest in the group via Usaha Tegas Sdn Bhd, has been going around for about a year now, and it was known in the market that Ananda had approached several local and foreign oil and gas companies to sell Bumi Armada, but to no avail," reported the digitaledge Weekly.

At 11.13 a.m, Bumi Armada shares fell to a low of 96.5 sen, 1.5% lower than its close yesterday, and was the fourth most actively-traded counter on Bursa Malaysia, with 26.88 million shares traded.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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