Nomad erases gains after surpassing take-over offer price

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KUALA LUMPUR (Mar 4): The Nomad Group Bhd erased gains after rising as much as 10 sen or 8.33% to RM1.30, breaching the RM1.25-a-share take-over offer by property developer Plenitude Bhd.

At 12:30pm, Nomad settled lower at RM1.18 with 295,200 shares done.

It earlier fell to an intraday low of RM1.16. Yesterday, Nomad hit limit up after rising 30 sen to close at RM1.20 on news of the take-over offer.

Nomad (fundamental: 1.7; valuation: 2.4)  owns and runs hotels and commercial properties.

Last Monday, Nomad said it received the take-over offer from Plenitude (fundamental: 2.7; valuation: 1.8) at RM1.25 a share. Plenitude had proposed to issue new shares as payment for the exercise on the basis of one Plenitude unit for every two Nomad shares held.

Plenitude's offer compares to Nomad's latest reported book value of RM1.61 a share.

Plenitude said the Nomad acquisition would expand the buyer's earnings base for more recurring income.

Nomad, through its hotel segment, owns Novotel Kuala Lumpur City Centre, The Nomad SuCasa, GLOW Penang and The Nomad Serviced Residences Bangsar.

Nomad also owns The Nomad Offices in Kuala Lumpur, Singapore, Ho Chi Minh City, Bangkok, Jakarta and Manila.

(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.)