KUALA LUMPUR (March 16): Complete Logistic Services Bhd has acquired 18 million shares, representing a 14.94% stake, in Classic Scenic Bhd for RM1.63 per share or RM29.34 million.
Classic Scenic is a manufacturer of wooden picture frame molding and timber products for both domestic and export markets, and it also leases properties.
Complete Logistic said it acquired the shares today from Lim Ket Leng Holding Sdn Bhd, the private vehicle of the Lim family, which collectively controlled a 31.76% stake in Classic Scenic prior to the disposal.
The disposal consideration of RM1.63 per share represents a 8.58% premium to the five-day volume weighted average market price of Classic Scenic shares of RM1.50, the logistics services group said in a bourse filing.
"The investment in Classic Scenic is liquid and allows Complete Logistic to have a substantial stake in a company that has been profitable since its listing in 2004 and recorded annual audited profit after tax of between RM6.25 million and RM13.28 million over the past five financial years.
"In addition, Classic Scenic has a track record of declaring annual dividends of between three sen and 11 sen for the past financial years since Dec 31, 2011," said Complete Logistic.
Shares of Classic Scenic traded well below RM1 for much of last year but climbed substantially through February. The counter closed two sen or 1.25% lower at RM1.58, for a market capitalisation of RM190.39 million. Year-to-date, the counter has gained 74.59%.
Complete Logistic closed three sen or 2.46% lower at RM1.19, valuing the group at RM153.09 million.