Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on November 23, 2018

Hovid Bhd (+ve)

TRADING of shares in Hovid Bhd (fundamental: 0.85/3, valuation 0.5/3) triggered our proprietary momentum algorithm yesterday for the fourth time this year. The stock closed unchanged at 37.5 sen, with 1.55 million shares done versus the counter’s 200-day average volume of 394,131 shares.

On Sept 14, Hovid managing director David Ho Sue San and Fajar Astoria Sdn Bhd, which had jointly launched a bid to take Hovid private, called for the withdrawal of the group’s listing on Bursa Malaysia’s Main Market.

The parties also made an exit offer in the form of a conditional voluntary offer to take over the remaining 20.95% of shares they do not own at 38 sen per share, the price at which their earlier offer was made. The offerors said the delisting request is because Hovid no longer meets the public shareholding spread requirement of at least 25% of total shares in public shareholders’ hands. The exit offer is conditional upon Hovid shareholders’ approval at an extraordinary general meeting to be convened and the regulators’ approval for the proposed withdrawal.

Hovid is now trading at 1.46 times its net book value.

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