KUALA LUMPUR(Oct 15): Komarkcorp Bhd, which is principally involved in the printing of labels, saw its share price surging 13.5 sen, or 32.9% this morning to 54.5 sen, after its announcement on Tuesday that French company Autajon is keen on buying its operating subsidiary companies.

Autajon, a manufacturer of folding cartons and labels based in Montelimar, France expressed non-binding indication of interest on Tuesday.

The subsidiaries that Autajon is keen on acquiring are General Labels & Labelling (M) Sdn Bhd and its subsidiary companies, namely General Labels & Labelling (JB) Sdn Bhd and Komark (Thailand) Co. Ltd, General Labels& Labelling Pte Ltd, Komark International(M) Sdn Bhd and its subsidiary company, namely PT Komark Labels and Labelling Indonesia, as well as Komark Investment Holdings Ltd, and its subsidiary companies, namely Shanghai Komark Labels & Labelling Co Ltd  and Guangzhou Komark Labels & Labelling Co Ltd.

However, Autajon requires, among others, that a due diligence to be satisfactorily completed before it can proceed to the stage of making a definitive offer involving the operating subsidiary companies of Komarkcorp.

The scope of the due diligence would include, among others, the financial, legal, tax, commercial, human resource and regulatory aspects of the companies.

“The board wishes to inform that the above interest from Autajon is at an exploratory stage. There is no assurance that a definite offer from Autajon will materialise,” said Komarkcorp.

At 10.19 a.m, Komarkcorp shares erased 0.9% of its earlier gains and was trading at 54 sen, with 1.18 million shares changing hands at market capitalisation of RM51.1 million.

(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.)