Hot Stock Unico-Desa soars as high as 30% on parent firm’s plan to sell its stake

by **Cals** Tue 24 Sep 2013, 17:36

Hot Stock Unico-Desa soars as high as 30% on parent firm’s plan to sell its stake
Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Tuesday, 24 September 2013 16:50

KUALA LUMPUR (Sept 24): Shares of Unico-Desa PLANTATION []s Bhd roared ahead of the annual general meeting (AGM) of its unlisted parent company Unico Holdings Bhd, that may vote on a plan to sell its stake in the small Sabah-based plantation company.

Ahead of the AGM tomorrow, Unico Holdings had issued a press statement stating that it intended to offload its near 30% stake in Unico-Desa and distribute the cash proceeds to shareholders of Unico Holdings.

The normally quiet counter of Unico-Desa saw its shares jumped as high as 35 sen or 30% to RM1.53 per unit in intraday trades before settling at RM1.30 at 4.24 pm, which was 12 sen or 10% higher than yesterday’s close of RM1.18.

Trades totalled about nine million shares.

“I guess the sharp jump in Unico Desa shares might have to do with the statement released by Unico Holdings, whose shareholders will have to make a decision on its plan,” said Mew Jin Seng, chairman of Unico-Desa.

Mew, who is in China now, told theedgemalaysia.com over the phone that there is no special news from Unico-Desa that could excite its stock price.

In fact, Unico-Desa’s results for the first quarter to end-June 2013 were weak. The firm only posted a net profit of RM348,000 compared to RM10.9 million a year ago, due to the current slump in palm oil prices.

Asked whether there is any taker for Unico Holding’s stake in Unico-Desa yet, Mew said he did not know. He is also unaware of the offer price, if there is any.

Unico Holdings, originally started off as the investment arm of the Associated Chinese Chamber of Commerce and Industry of Malaysia (ACCCIM), has common key shareholders with Unico-Desa.

Most of these common shareholders are former leaders of ACCCIM and Chinese chambers of commerce of various states in Malaysia.

But the person with controlling stake and final say is Teoh Hock Chai, the managing director of Unico-Desa and a former director of Unico Holdings.