Eonmetall says it is in talks to acquire 51% stake in glove maker

Eonmetall says it is in talks to acquire 51% stake in glove maker
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KUALA LUMPUR (Nov 23): Eonmetall Group Bhd, which was slapped with an unusual market activity (UMA) query by Bursa Malaysia today, said it is in talks to acquire a glove manufacturer.

"The company is currently in negotiation/discussion to purchase an equity interest of 51% in a company, of which its intended principal activity is in the production of medical grade (nitrile) gloves and non-medical grade gloves.

"The purchase consideration for the proposed acquisition is envisaged to be satisfied via issuance of new shares in Eonmetall Group," the group said in a filing.

It added that a memorandum of understanding is expected to be executed between the parties.

"Thereafter, the parties will negotiate to formalise the detailed terms and conditions to the proposed acquisition," said Eonmetall.

The steel and industrial product manufacturer was responding to Bursa Malaysia's UMA query on the sharp rise in its share price and volume recently.

Eonmetall's share price closed up 21 sen or 35.29% at 80.5 sen today — a level it has not seen since February 2018. This comes after it rose 15.5% or eight sen to 59.5 sen last Friday.

There were some 28.15 million shares traded today, significantly higher than its 200-day average volume of 1.01 million shares.

At the current price of 80.5 sen, the group's market capitalisation stands at RM163.99 million.

S Kanagaraju