KUALA LUMPUR (July 19): Goodway Integrated Industries Bhd jumped 5.49% to a one-year high of 48 sen when trading on the securities resumed today after news of its acquisition of security solution provider S5 Systems Sdn Bhd from NSA Technology Sdn Bhd for RM900 million.
At 10.26am, its share price climbed three sen, with 5.02 million shares done for a market capitalisation of RM50.28 million. Year-to-date, its share price has grown 77.78%.
According to a remisier who declined being named, the stock is active with selling activities dictating its movement.
“It is a volatile stock. The market is viewing it positively. There is more selling than buying but it is early stages now,” he told theedgemarkets.com.
Yesterday, Goodway said it inked an agreement with NSA Technology for the injection of the entire equity interest of S5 Systems into Goodway for 1.8 billion new Goodway shares at an issue price of 50 sen per share.
There will be an offer for sale by NSA Technology of up to 165.8 million Goodway shares to existing Goodway shareholders at 50 sen per share, on the basis of three shares for every two shares held. Additionally, NSA Technology will also be placing up to 440 million Goodway shares to investors to be identified at a price to be determined via book-building.
The proposed acquisition is expected to provide the shareholders of Goodway, which has been loss-making since the financial year ended December 2014, with an opportunity to participate in a new core business that is profitable with growth potential and a steady stream of cash flows.