KUALA LUMPUR (July 3): Perdana Petroleum Bhd’s share price rose as much as three sen or 1.96% to RM1.56 apiece in today's morning session, before it pared gains to RM1.54 per share at market break.

The counter was the second most-traded stock across Bursa Malaysia, with 43.62 million shares done.

Yesterday (July 2), Perdana (fundamental: 1.15; valuation: 0.8) told the local exchange it had received a notice from Dayang Enterprise Holdings Bhd to indicate the share sale agreement (SSA) entered between the latter and Affin Hwang Asset Management Bhd has turned unconditional, following shareholders’ approval in the extraordinary general meeting.

Dayang (fundamental: 2.7; valuation: 2.1) had on May 14, entered into the said SSA with Affin Hwang to acquire 5.74% stake in Perdana for RM66.59 million, or RM1.55 per share.

With this acquisition, which increased Dayang’s stake in Perdana to 38.45% from 32.71% previously, the latter also announced it had received a conditional mandatory take-over offer from Dayang.

The offer is to purchase all remaining Perdana shares and warrants not already owned by Dayang, for a cash offer price of RM1.55 per share and 84 sen per warrant.

“In relation to the offer, the board has deliberated on the notice and is not seeking an alternative person to make a take-over offer for the offer shares and offer warrants,” Perdana said.

The group also said its board of directors will appoint an independent adviser to advise them and shareholders in relation to the offer.

(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.)