Hot Stock Symphony soars 104% on Ranhill reverse take-over proposal

by **Cals** Thu 27 Mar 2014, 12:36

Hot Stock Symphony soars 104% on Ranhill reverse take-over proposal

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Thursday, 27 March 2014 10:34

KUALA LUMPUR (Mar 27): Symphony House Bhd soared as much 104% in morning trade after the business process outsourcing entity announced a reverse take-over (RTO) proposal by Ranhill Energy and Resources Bhd.

At 9.58am, Symphony was traded at 22 sen, up 8.5 sen or 63% with some 101.3 million shares done. The exchange's most-active stock was also the eighth largest gainer.

Earlier, the counter had more than doubled its opening price of 13.5 sen, for a 14 sen rise to reach a high of 27.5 sen.

A dealer said the price of Symphony shares was being driven by speculation, partly relating to the positive outlook on the oil and gas (O&G) sector.

“I think that the price spike is due to speculation as investors do not really know much about Ranhill Energy besides the fact that it deals in O&G , water and power.

“Part of the reason behind the rise in price may be due to the positive outlook on the O&G segment,” he told theedgemalaysia.com.

Analysts had earlier anticipated Symphony will attract market attention on the latest corporate development.

"Meanwhile, the following stocks may attract added interest today: (These include) Symphony House, which has entered into an MOU to
pursue negotiations for a proposed reverse takeover exercise of the company by Ranhill Energy and Resources," HwangDBS Vickers Research Sdn Bhd wrote in a note today.

Yesterday, Symphony said the RTO would see the company acquiring the entire stake in Ranhill Energy's operating units. These include Ranhill Group Sdn Bhd and its subsidiaries under a heads of agreement between Symphony and Ranhill Energy.

Symphony will issue new shares at RM1.50 each as payment to Ranhill Energy.

According to Symphony, the RTO plan includes the consolidation of existing Symphony shares besides a public issue, and renounceable rights issue of new shares in the company.