This article first appeared in The Edge Financial Daily on February 7, 2018

Weida (M) Bhd (-ve)
SHARES in Weida (M) Bhd (fundamental: 1.95/3, valuation: 1.4/3), which triggered our momentum algorithm yesterday for the second time this year, closed down two sen or 0.9% at RM2.21.

It saw 1.14 million shares traded, versus the counter’s 200-day average volume of 178,112.5 shares.

Last week, its founder Datuk Lee Choon Chin offered shareholders RM2.40 per share to privatise the group.

Lee, who is also the group’s executive chairman, made the offer via 88%-owned Weida Management Sdn Bhd. Under the proposal, Weida Management requested Weida to undertake a selective capital reduction and repayment exercise.

At RM2.40 per share, the offer price is at a premium of 19 sen or 8.6% to Weida’s closing share price yesterday of RM2.21.