The Nomad Group soars 33.33% on Plenitude's proposed takeover

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KUALA LUMPUR (Mar 3): Shares of The Nomad Group Bhd soared 33.33% in morning trades today on news Plenitude Bhd has proposed a conditional take-over of the company at an offer price of RM1.25 apiece.

As at 11.12 am, the counter had jumped 33.33% or 30 sen to RM1.20, with some 252,600 shares changing hands. It was also one of the top gainers across the local bourse this morning.

Nomad, an integrated provider of serviced offices, hotels and residences, said the takeover would be satisfied by the issuance of new Plenitude shares at an issue price of RM2.50 each, with each holder of the offer share receiving one consideration share (Plenitude shares) for every two offer shares (The Nomad Group shares) surrendered.

The acquisition would see the issuance of up to 111.53 million new Plenitude shares for RM278.83 million, Nomad said in an announcement with Bursa Malaysia yesterday.

The new shares issued translates to 29.23% of the enlarged share capital. The deal would increase Plenitude's issued and paid-up share capital to 381.53 million from 270 million.

It added that the proposed offer represents an opportunity for the company to expand its hotel segment to diversify its earnings base and enhance its source of recurring income. Following the acquisition, Plenitude would take The Nomad Group private.