Delloyd shares continue to climb on higher buyout offer

by **Cals** Thu 14 Aug 2014, 01:20

Business & Markets 2014

Written by Gho Chee Yuan of theedgemalaysia.com

Wednesday, 13 August 2014 09:42

KUALA LUMPUR: Shares in Delloyd Ventures Bhd continued to rise yesterday, climbing more than 2.72% or 13 sen to close at RM4.91 — its all-time high since it was listed on Bursa Malaysia in 1996.

The share price increase came on the news that its major shareholder Chung & Tee Ventures Sdn Bhd (CTVSB) had raised its buyout offer by 40 sen to RM5.20 per share from RM4.80 previously.

The stock rose to an intra-day high of RM4.96 yesterday before settling at RM4.91, with 600,400 shares traded. Its market capitalisation stood at RM474.27 million.

Year-to-date, the stock has risen 49.7%. It has been trading at between RM3.11 and RM4.96 for the past 52 weeks.

Dealers said news on the higher offer price had prompted investors to buy Delloyd shares.

“The selective capital reduction (SCR) and repayment exercise is the main catalyst to push up its share price.

“All this while, there has not been much trading activity for the counter,” a dealer told The Edge Financial Daily yesterday.

Delloyd announced to Bursa Malaysia on Monday that CTVSB, controlled by Delloyd group managing director Datuk Seri Tee Boon Kee’s family, had informed it in a letter dated Aug 11 that it (CTVSB) raised its buyout offer price to RM5.20 a share from RM4.80.

CTVSB, together with the other non-entitled shareholders, control 63.58% of the voting share capital of the company.

On May 16, Delloyd told Bursa that its board of directors had received a letter from CTVSB requesting to take the company private via a SCR exercise, saying that it wanted to “give an opportunity to entitled shareholders to realise their investments” given an increasingly challenging business environment for Delloyd.

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This article first appeared in The Edge Financial Daily, on August 13, 2014.[/size]