KUALA LUMPUR (July 8): Focus Dynamics Group Bhd revealed today that it is exploring a potential merger and acquisition (M&A) exercise with another company with a sizeable asset base.

It has also been in discussions to potentially acquire strategic stakes in some food and beverage companies.

It said these are all part of its continuous effort in looking out for opportunities to expand its core business in the F&B segment via M&A to enhance its earnings and financial performance.

It said this in a stock exchange filing today in response to an unusual market activity query from the bourse regulator yesterday.

"Notwithstanding the above, the group wishes to highlight that no decision has been made with regards to any potential proposal at this juncture, as all discussions are still at a preliminary/exploratory stage," it said.

Other than these, it said it is not aware of any rumour, report or any other possible explanation that may account for the unusual trading activity seen involving its shares.

Shares of the entertainment and lifestyle group had been trending upwards since mid-April. Yesterday, it spiked by 11.5% or 13 sen to close at RM1.26, an all-time high for the company, after 10.55 million shares were done.

Today, the stock fell 19.05% or 24 sen to close at RM1.02 today after 18.3 million shares were traded, valuing it at RM2.09 billion. The stock has doubled from when it was trading at 51 sen apiece at end-2019.