UMA Bursa queries Tecnic after share price jumps almost 26%

by **Cals** Wed 29 Apr 2015, 01:28

UMA
Bursa queries Tecnic after share price jumps almost 26%

KUALA LUMPUR (Apr 28): Bursa Malaysia has issued Tecnic Group Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) with an unusual market activity (UMA) query today, after a sharp rise in the plastic products manufacturer's share price.
The company, however, said it is not aware of any previously undisclosed corporate development, rumours or possible explanations which would account for the UMA.
Today, Tecnic’s share price jumped 25.85% or 19 sen to reach 92.5 sen, after about to 7.2 million shares changed hands. This gives Tecnic (fundamental: 2.8; valuation: 3) a market capitalisation of RM37.37 million.
Technic’s share price has been climbing rapidly in the last week, ahead of its distribution-in-specie of SKP Resources Bhd (SKP Resources) shares, following the special dividend ex-date last Thursday on April 23, 2015.
In fact, the company’s share price reached the upper limit threshold last Thursday and Friday, which prompted a momentary freeze of its shares’ trading price.
The company had earlier announced a corporate exercise which involved the distribution of 172.09 million SKP Resources (fundamental:2.1; valuation: 1.1) shares held by Tecnic to Tecnic shareholders, on the basis of 4.26 SKP Resources shares for every one Tecnic share held.
It is also distributing RM94.93 million in cash proceeds and a RM11.7 million repayment received from the takeover by SKP Resources to shareholders, on the basis of RM2.64 for every one Tecnic share held.
To recap, SKP resources proposed to acquire sister company Tecnic’s entire business in October last year for RM200 million, which it satisfied via the issuance of 172.4 million new SKP shares at 58 sen each, and RM100 million cash. The acquisition was officially completed early this month.
(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)