KUALA LUMPUR: D’nonce Technology Bhd said yesterday that one of its major shareholders is in talks with Lay Hong Bhd in relation to the latter subscribing for an equity stake in the company.

“The major shareholder confirmed that there is a preliminary discussion with Lay Hong on the equity but nothing has been finalised,” the advanced packaging materials distributor said in a bourse filing yesterday.

However, it denied that Lay Hong has taken up a stake in the company via a private placement with warrants as it has not finalised any placees at this juncture.

D’nonce also said it is exploring the possibility of a synergistic alliance for packaging supplies to Lay Hong. 

A local daily reported yesterday that Lay Hong may take up a controlling stake in D’nonce, as the integrated eggs and poultry player is looking to expand its business.

It was reported that Lay Hong may subscribe for the shares via a private placement exercise.

According to D’nonce’s Annual Report 2016, its chief executive officer and group managing director Law Kim Choon was the single-largest shareholder with an equity stake of 17.14% as at Dec 31, 2015.

Yesterday, its stock closed one sen or 3.39% higher at 30.5 sen, with a market value of RM55.02 million.