Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 26): Paragon Union Bhd, which received an unusual market activity (UMA) query from Bursa Malaysia after its share price jumped over 60% to an intraday high of 61 sen today, said the group has been approached by certain interested parties who had expressed interest in acquiring the company’s shares.

In its response to the query today on the recent sharp rise in price and volume of Paragon Union shares, the carpet manufacturer and distributor said the approach and discussion at this point is preliminary, and no agreement and/or conclusions have been made, reached or firmed up in respect of the discussion so far.

It added that it will make the necessary disclosure and an announcement made to Bursa Securities in the event that any agreement is concluded from the discussion, if required under the Main Market Listing Requirements.

This morning, Paragon Union rose to a high of 61 sen — the highest since July 2007 — up 24.5 sen or 67.12% compared to Friday's closing price of 36.5 sen.

At the closing bell, the stock pared some of its gains, still up 11.5 sen or 31.51% at more than three-year high of 48 sen. This placed it at 11th place among the top gainers on Bursa Malaysia.

Some 4.45 million shares were traded, far exceeding its 200-day average volume of 18,370 shares.

For the cumulative six-month ended June 30, 2020 (6MFY20), Paragon Union’s net loss ballooned to RM4.21 million from RM1.74 million a year ago as revenue fell 48.67% to RM14.07 million against RM27.42 million a year ago.

The group said the decline in revenue was due to decreased sales in both automotive and commercial sectors, on account of the Covid-19 pandemic and ensuing movement control order (MCO) imposed by the government to curb the spread of the virus.

Edited ByLam Jian Wyn
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