KUALA LUMPUR (Nov 2): Convenience store operator 7-Eleven Malaysia Holdings Bhd's shares ended Wednesday (Nov 2) at the peak of Bursa Malaysia’s top losers, following a 55 sen or 23.31% fall to close at RM1.81, after it said that it was not aware of any reason for the recent increase in its share price.
The decline also came after the stock exchange suspended the short selling of 7-Eleven's securities under intraday short selling (IDSS) and by proprietary day traders (PDTs) on Wednesday, because the stock price fell by more than 15 sen or 15% from the reference price, which was Tuesday's (Nov 1) closing price of RM2.36.
Notably, the 23.3% drop marked 7-Eleven shares’ largest single-day fall on record. The counter’s previous record-high single-day drop was on March 19, 2021, when it fell 7.91%.
Additionally, the counter saw its highest daily trading volume of this year on Wednesday with 3.63 million shares changing hands.
Prior to this, shares in 7-Eleven had been on the rise, climbing 51.28% over a three-week period — from the closing price of RM1.56 on Oct 7 to RM2.36 on Tuesday. On Monday, the counter hit a record high of RM2.38.
However, the share price momentum reversed on Wednesday, after 7-Eleven said it was unaware of any reason for the recent share price rise, including articles published by The Edge.
“The board of directors of the company wishes to inform that to the best of its knowledge and belief, after making due enquiry with the company’s directors, major shareholders and such other relevant persons, the board of directors is not aware of any of the following that may have contributed to the recent share price momentum, vis-a-vis the articles published by The Edge on Oct 17 and 24 respectively,” the company said in a filing with Bursa Malaysia on Tuesday.
7-Eleven also said it was unaware of any corporate development that had not been previously announced, any rumour or report, or any other possible explanation to account for the share price momentum.
The articles 7-Eleven referred to are The Edge Malaysia weekly's reports that appeared in the Oct 17-23 issue. Citing sources, the weekly reported that US-based private equity fund Carlyle Group is believed to have submitted a bid to purchase Caring Pharmacy Group Bhd from the company.
“Both negotiations are at an advanced stage,” the source told The Edge in regard to 7-Eleven’s disposal of Caring and the acquisition of Sarawak-based retail pharmacy chain JOM Pharmacy.
In July, Bloomberg, citing people with knowledge of the matter, reported that 7-Eleven was working with an adviser on the potential divestment of Caring, and had attracted interest from some Japanese parties. It was also reported that the company could seek a valuation of US$400 million (RM1.9 billion) for the pharmacy retailer.
Subsequently in August, 7-Eleven told The Edge that it was in the preliminary stages of discussions with several parties to sell its stake in Caring — which was previously listed on the local bourse from 2013 to May 2020, before 7-Eleven took over the pharmacy group in June that year.
7-Eleven owns 75% of Caring, while the remainder is held by Motivasi Optima Sdn Bhd. Meanwhile, 7-Eleven’s largest shareholder is Berjaya Corp Bhd founder Tan Sri Vincent Tan, who controls 41.095% of the company.