KUALA LUMPUR (Feb 26): Scientex Bhd shares rose as much as 27 sen or 3% to RM8.94 after the group said it is acquiring 100% of Klang Hock Plastic Industries Sdn Bhd (KHPI) for RM190 million cash to expand Scientex's product portfolio in the plastic packaging segment.
At 10:37am, Scientex shares were traded at RM8.83 to become Bursa Malaysia's 10th-largest gainer. Scientex saw 330,000 shares transacted.
Scientex shares resumed trading today following a suspension on Friday.
On Friday, Scientex said its wholly-owned subsidiary Scientex Packaging Film Sdn Bhd had entered into a sale and purchase agreement with the KHPI stake owners. They are Law Wan Hong @ Lew Wan Hong, Ng Boon Eu, Lew Pei See @ Law Pei See and Lew Pei Lin @ Law Pei Lin.
Today, TA Securities Holdings Bhd analyst Damia Othman wrote in a note that TA had maintained its buy call on Scientex shares with a higher target price of RM10.01 compared to RM9.84 previously.
"We are positive on this news as this will allow the group to: i) strengthen its position in the global flexible plastic packaging (FPP) market; ii) enhance its production capacity and product portfolio as well as iii) increase [its] clientele reach," Damia said.