Friday 29 Mar 2024
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Premier Nalfin Bhd (-ve)

Premier Nalfin (Fundamental: 1.5/3, Valuation: 0.9/3) saw a sharp surge in trading volume last Friday, gaining 9.1% to close at 36 sen. A day earlier, the PN16 company announced that it has submitted a revised restructuring scheme/ regularization plan.

Based on the revised scheme, Premier will acquire Emrail (without Kidex Sdn Bhd), a company specializing in railway engineering services, infrastructure development and construction works. The RM200 million acquisition will be made through Newco, a special purpose vehicle which shall assume the listing status of Premier Nalfin post acquisition—essentially a reverse takeover. 

Other proposals in the scheme include a capital repayment exercise and a share split.

Premier is a cash-holding company, since it sold off its entire business in 2011. It has a net cash of RM116.1 million, compared to its current market capitalization of RM111.2 million. No dividend was paid since 2010.

Premier-Nalfin_fd290615_theeedgemarkets

This article first appeared in The Edge Financial Daily, on June 29, 2015.

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