KUALA LUMPUR (April 24): Shares of Sinotop Holdings Bhd rose as much as 47% this morning after the company announced that its major shareholder will inject a construction company into the group for RM96 million.
At 11.30am, Sinotop was trading up 6.5 sen or 23.6% at 34 sen after 1.72 million shares were traded. The stock went as high as 40.5 sen earlier this morning.
Yesterday, Sinotop said it has entered into a conditional share sale agreement with its major shareholder Datuk Justin Soo Sze Ching for the proposed acquisition of Asianmax Corp Sdn Bhd.
The acquisition is said to be in line with the company's strategic plan to expand and strengthen its infrastructure construction business to further enhance the group's earnings.
Sinotop said the acquisition comes with a profit guarantee that the aggregate net profit of Asianmax for the two financial years ending June 30, 2020 and 2021 will not be less than RM24 million.