Hot Stock GBH shares fall 16.8% on news of RTO termination

by **Cals** Wed 01 Oct 2014, 07:51

Hot Stock GBH shares fall 16.8% on news of RTO termination

Business & Markets 2014

Written by Supriya Surendran of theedgemalaysia.com

Tuesday, 30 September 2014 15:17

KUALA LUMPUR (Sep 30): Goh Ban Huat Bhd’s (GBH) share price fell as much as 16.8 % today to RM1.87, after it announced that its proposed reverse takeover (RTO) of Dynac Sdn Bhd had been terminated.
In a filing with Bursa Malaysia today, GBH said that it had received a letter dated Sep 29 from Datuk Abdul Rahman Mohamed Shariff and Normala Mohd Sharif, who had expressed their intention to terminate the proposed RTO exercise by mutual agreement.
To recap, GBH had entered into the Memorandum of Agreement (MoA) with Abdul Rahman and Normala on July 2, in which GBH would acquire the entire equity interest in Dynac for RM632 million, to be satisfied via a combination of cash and the issuance of new ordinary shares of RM 1 in GBH, at an issue price of RM2 each.
In its announcement, GBH said that it had considered the request made by the vendors and via an emergency board meeting today had decided to concur with their request, and agreed for the proposed mutual termination of the agreement.
GBH shares were suspended at 9.00 am today, due to the material announcement which had followed after, and resumed trading at 2.30 pm today.
GBH shares had spiked to RM 2.38 in July when the announcement of the RTO was made, and hit a high of RM2.46 on Sep 4.
Two remisiers told theedgemalaysia.com that the decision to terminate the RTO was most likely the main trigger for the market selldown, and commented that the stock was overvalued.
At 3.02 p.m, GBH fell as much as 38 sen or 16.8% to RM1.88, with some 799,800 shares done.
The stock fell 44 sen or 19.5 % to a low of RM1.81 and was the top loser of the exchange.