China Auto jumps 21% after Australian mining firm proposes to buy stake

-A +A

KUALA LUMPUR (May 18): China Automobile Parts Holdings Ltd jumped as much as 21% after Australia-listed mining firm Siburan Resources Ltd proposed to buy a major stake in the company.

Last Friday (May 15), China Automobile (fundamental: 1.95; valuation: 1.8) announced Siburan would buy the 16.67% stake in China Automobile from Guotai International Holdings Ltd.

The transaction, involving 100 million China Automobile shares, is valued at RM60 million or 60 sen a share.
 
Today, China Automobile rose as much as 7.5 sen to 43.5 sen, before paring gains. At 4:10pm, the bourse's eighth most-active stock was traded at 41.5 sen, with some 33 million shares having changed hands.

(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.)