Hot Stocks Press Metal shares, warrants rise on higher price for stake sale in subsidiary

by **Cals** Wed 02 Jul 2014, 02:00

Hot Stocks Press Metal shares, warrants rise on higher price for stake sale in subsidiary

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Tuesday, 01 July 2014 12:26

KUALA LUMPUR (July 1): Press Metal Bhd shares and warrants rose today after a Japanese company offered a higher price to buy a 20% stake in its subsidiary.

The additional cash of US$20.57 million (RM66.07 million) was received after adjusting for the higher purchase price secured for the stake sale in Press Metal Bintulu Sdn Bhd (PMBSB).

At 12.00 noon today, shares of Press Metal Bhd rose 13 sen or 3.3% to RM4.06 on trades of 497,800 shares. The stock was earlier one of the top ten risers.

All its warrants were higher too. Press Metal-CB rose 1.5 sen or 6.4% to 25 sen on trades of 783,400 units.

The initial cash offer for a 20% stake in PMBSB was US$140.05 million (RM443.96 million), but it has now been raised to US$160.63 million (RM513.12 million) due to the higher price adjustment.

An announcement yesterday said, Press Metal "has today received from Summit Global Management XII B.V (SGM), a further cash consideration of USD20.579 million ( RM66.069 million) pursuant to the price adjustment after closing, for the actual equity value of the PMBSB shares transferred by PMB to SGM based on the closing balance sheet as at 31 March 2014.”

On November 1, 2013, Press Metal Bhd entered into a conditional sale and purchase agreement (SPA) with Sumitomo Corporation unit, Summit Global Management XII B.V (SGM), to dispose of a 20% equity stake in PMBSB.

“Together with the provisional cash consideration of US$140.049 million received on 1 April 2014, the company had received in total US$160.628 million for the disposal,” said the announcement yesterday.