KUALA LUMPUR (June 26): Gunung Capital Bhd has acquired 4.7 million shares representing a 3.2% stake in construction renovation and interior decoration firm Yi-lai Bhd for RM5.22 million.

This works out to RM1.11 per Yi-lai share, a 12 sen premium to the stock’s closing price of 99 sen per share. 

“Our financial asset investment division, after thorough evaluation, is confident of the growth prospects of Yi-lai, and is of the opinion that Yi-lai is currently undervalued by the market,” Gunung said in a bourse filing today.

“As such, the decision was made to invest in Yi-lai to secure higher returns on investments for Gunung,” the group added.

Gunung said the acquisition, which was done via direct business transfer, was funded by internally-generated funds.

Loss-making since 2015, Gunung is mainly involved in the chartering of land-based transport assets and speciality vehicles.

The group operates the fleet requirements of the Ministry of Defence, transporting schoolgoing children of armed forces personnel nationwide.

In a separate filing, the group said the aggregate purchase consideration of quoted securities acquired by Gunung for the past 12 months stood at RM9.61 million or 9.59% of its latest audited consolidated net assets.

Gunung’s investments in quoted securities as at June 26 involved a total cost and book value of RM9.61 million and total market value of RM10.34 million, the filing showed.

The group has not recorded any profit from the sale of such securities during the financial year ending Dec 31, 2020, it noted.

Under the listing requirements of Bursa Malaysia, a company must announce to the exchange of such transactions committed within the preceding 12 months, with the total being 5% or more of the listed issuer’s latest audited consolidated net assets.

Shares of Gunung closed one sen or 1.87% lower at 54.5 sen today, with 422,500 units done. This valued the company at RM131.8 million.