Stock With Momentum: Pasdec Holdings

This article first appeared in The Edge Financial Daily, on July 16, 2018.
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Pasdec Holdings Bhd (+ve)

TRADING in the shares of Kuantan-based property developer Pasdec Holdings Bhd (fundamental: 0.35/3, valuation: 0.9/3) triggered our stocks with momentum algorithm last Friday for the first time this year.

The stock closed one sen or 2% higher at 51 sen, after 2.08 million shares were traded, a little higher than its 200-day average volume of 1.7 million shares.

On July 3, Pasdec’s substantial shareholder Datuk Seri Tew Kim Thin launched a bid to acquire the remaining 57.74% of Pasdec’s shares, as well as 31.28% of its warrants, which he does not own.

Kim Thin, who is an executive director of Pasdec, has proposed to pay RM121.36 million or 52.5 sen per share for the 231.16 million shares, and RM357,900 or one sen per warrant for the 35.79 million warrants.

Pasdec received the conditional mandatory takeover offer from Kim Thin through his private investment vehicle Jasa Imani Sdn Bhd.

Kim Thin, who intends to maintain Pasdec’s listing status, is the founder and major shareholder of Jasa Imani, in which he holds a 58.19% stake. Kim Thin’s son Tew Liang Tze owns another 37.41% of Jasa Imani shares.