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