Hot Stock Perak Corp jumps 7% on privatisation

by **Cals** Tue 07 Jan 2014, 18:37

Hot Stock Perak Corp jumps 7% on privatisation

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Tuesday, 07 January 2014 15:35

KUALA LUMPUR (Jan 7): Perak Corp Bhd jumped as much as 7% on news that major shareholders of the port operator and property developer intend to privatise and delist the firm.

At 3.15pm, Perak Corp was traded at RM3.64 with some 4.7 million shares done. The stock which traded among the bourse's top gainers, had earlier risen as much as 26 sen to RM3.75.

"The corporate exercise is the reason for the stock's rise," a dealer told theedgemalaysia.com over telephone today.

Perak Corp said yesterday major shareholders comprising Perbadanan Kemajuan Negeri Perak, Fast Continent Sdn Bhd, Cherry Blossom Sdn Bhd and Perak Equity Sdn Bhd had proposed to undertake a selective capital reduction in Perak Corp, and cash repayment to minority shareholders.

The acquirers who already owned a combined 52.9% intends to cancel the stake held by minority shareholders who will receive RM3.90 a share. This compares to Perak Corp's latest reported net assets per share of RM5.03.

Trading of Perak Corp shares was suspended yesterday in conjuction with the announcement.

Trading of the stock resumed today. Analysts had earlier expected Perak Corp shares to attract market interest.

HwangDBS Vickers Research Sdn Bhd wrote in a note today, "In terms of interesting corporate developments, of probable interest today are stocks like Perak Corp which has proposed a capital reduction cum repayment exercise involving a cash offer of RM3.90 per share to its minority shareholders (versus its last traded price of RM3.49),"

Other shareholders of Perak Corp include Sime Darby Bhd which has a 6.13% stake.