BSL Corp says unaware of reason behind UMA

BSL Corp says unaware of reason behind UMA
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KUALA LUMPUR (Nov 8): BSL Corp Bhd, whose share price hit limit up on Monday (Nov 8), told Bursa Malaysia that it is not aware of any corporate development that would have caused the unusual market activity (UMA).

The stock opened at RM2.02 on Monday’s morning trade, before rising 19.8% or four sen to RM2.42 at the noon break.

The stock settled at a record high of RM2.43 — up 56 sen or 29.95% — on Monday’s closing bell. It saw some 8.19 million shares transacted, exceeding its 200-day average volume of 2.91 million by more than two times.

At RM2.43, BSL Corp has a market capitalisation of RM238.14 million. The counter has been on an upward trend since the start of the year, surging by 1,179% from 19 sen.

The metal parts manufacturer said in a bourse filing that it is not aware of any corporate development that has not been previously announced, any rumour or report concerning the group’s business and affairs as well as any possible explanation that may account for the group’s trading activity.

“The company is in compliance with, and will make the necessary announcement to Bursa Securities of any material information in compliance with Paragraph 9.03 of Bursa Securities Main Market Listing Requirements,” it said.

This is the third UMA query issued to the group this year. It received a similar query on Jan 7 and Sept 13, following a steep rise in its share price and trading volume.

On Sept 13, it said it was in the midst of negotiation to buy into Singapore-based SD Unify Pte Ltd, in response to the query. SD Unify is involved in the manufacturing and repair of semiconductor foundry equipment.

Meanwhile, in January, BSL Corp said a third party had approached its major shareholder with an unsolicited interest to acquire its shareholding in the company.

According to Bloomberg data, Sanichi Technology Bhd managing director Datuk Seri Pang Chow Huat and PNE PCB Bhd executive director Ho Jien Shiung are among the two largest shareholders of BSL Corp. Pang holds a 34.87% stake, while Ho holds an 18.15% stake in the group.

To recap, BSL Corp received a mandatory takeover offer from the duo, to buy all the remaining shares in the company at RM1.15 each in June.

For the full financial year ended Aug 31, 2021 (FY21), the group’s net profit climbed by 25 times to RM9.3 million against RM370,000 a year earlier, as full-year revenue rose 16.3% to RM159.49 million from RM137.14 million due to higher sales volume.

Read also:
BSL Corp sparks UMA query as share price hits limit up

Lam Jian Wyn