Hot Stock Emas Kiara rises 4.71% on takeover offer

• Hot Stock
  

Emas Kiara rises 4.71% on takeover offer

By Surin Murugiah / theedgemarkets.com   | January 18, 2016 : 10:05 AM MYT    [You must be registered and logged in to see this image.]


KUALA LUMPUR (Jan 18): Shares of Emas Kiara Industries Bhd ([You must be registered and logged in to see this image.] Valuation: 0.90, Fundamental: 1.20) rose 4.71% in thin trade after it received a notice of unconditional takeover offer today from its second largest shareholder Kim Feng Capital Sdn Bhd (KF Capital), who has a 15% stake in the company, for the acquisition of all the remaining ordinary shares it does not own, at an offer price of 80 sen per share, cash.
At 9.45am, Emas Kiara rose 4 sen to 89 sen with 88,000 shares done.
In a bourse filing, Emas Kiara said KF Capital had entered into a conditional sale of shares agreements with founder and deputy executive chairman Wong Kong Foo, Intan Kuala Lumpur Sdn Bhd, Goh Siew Bee and Tan Sri Kamaruzzaman Shariff, to acquire 29.4 million shares, which is equivalent to 32% of EKIB’s share base, for RM23.52 million or 80 sen per share.
With the acquisition, KF Capital’s holdings in Emas Kiara will rise to 47% from 15%, triggering the mandatory general offer offer (MGO) for the remaining shares it does not own.
(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.)