KUALA LUMPUR (Apr 28): Visdynamics Holdings Bhd has signed a heads of agreement with PT Cipta Srigati Lestari (CSL) for several proposals. These include a reverse take-over and management buyout (MBO) of Visdynamics (fundamental:2.5; valuation: 0).
 
In a Bursa Malaysia filing today, automated test equipment manufacturer Visdynamics said CSL had proposed a reverse take-over of Visdynamics. This would entail Visdynamics or a special purpose vehicle acquiring CSL from CSL's owners.

The controlling shareholders of CSL are Steven Chandra, Roy Anthony Irawan, Fredyanto Kurniadi and Nathan Tirtana.

The acquisition will be financed via the issuance of new Visdynamics shares at 28 sen each.
 
Under the MBO, Visdynamics said the exercise would be led by its executive director and chief executive officer Choy Ngee Hoe.

According to Visdynamics' annual report, Choy, who is a major shareholder, is one of the founders of Visdynamics Research Sdn Bhd — a subsidiary of the company.

Visdynamics’ share trade was suspended between 12.25pm and 2.30pm today. At 2.32pm, the stock rose one sen or 2.6% to 39.5 sen, for a market capitalisation of some RM40 milion.

There were about two million shares traded. The stock had earlier risen to its highest so far today, at 40 sen.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)