Hot Stock Golsta falls 8% after Clement Hii sold out SYF stake

by **Cals** Sat 15 Mar 2014, 00:49

Hot Stock Golsta falls 8% after Clement Hii sold out SYF stake

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Friday, 14 March 2014 16:35

KUALA LUMPUR (Feb 14): Golsta Synergy Bhd’s share price fell as much as 8% after Tan Sri Clement Hii, who has offered to take over Golsta at RM2.10 per share, sold his entire 20% stake in SYF Resources Bhd yesterday.

At 4.00 pm today, Golsta was traded at RM3.27, down 26 sen or 7.4% with some 179,400 shares done.

The stock was earlier one of the top losers on the exchange, falling as much as 28 sen or 7.9% to a low of RM3.25.

Golsta fell sharply yesterday after Hii announced sale of his SYF stake to SYF chief executive officer (CEO) Ng Ah Chai at 60 sen per share.

Ng now owns a total 50.27% stake in SYF and has made a general offer of 65 sen per share for the remaining shares in SYF.

But a dealer noted that Golsta share price had been declining since the unusual market activity (UMA) query issued by Bursa Malaysia last Monday.

The share price had shot past the general offer price of RM2.10 given by Hii last month.

“I notice that the company’s share price has been declining after the UMA query. I think investors are selling off their stocks as there are no major developments announced by the company since Hii bought in,” he said.

Another dealer said Hii’s sale of SYF had cast uncertainty over Golsta’s future. “Who knows he might also sell out his Golsta stake,” the dealer said.

Journalist-turned-businessman Tan Sri Clement Hii emerged as a major shareholder of Golsta in February, after acquiring 16.95 million shares or a 36.69% stake in the company.

With the acquisition, Hii had triggered a mandatory general offer for the rest of the shares in Golsta not owned by him, at RM2.10 per share.