This article first appeared in The Edge Financial Daily, on October 29, 2015.
Symphony House Bhd (+ve)
Shares of Symphony House (Fundamental: 2.25/3, Valuation: 0.3/3) closed up 5.7% at 18.5 sen yesterday, with 33.7 million shares changing hands.
Note that on November 6, Symphony will hold an extraordinary general meeting (EGM) to seek shareholder approval for a proposed reverse takeover (RTO) by Ranhill Holdings Bhd. This exercise has been a long time in the making as it was first announced in March 2014.
Under the RTO, Symphony shares will first be exchanged for new shares in Ranhill Holdings. The latter will then acquire power and water assets ultimately owned by Ranhill Energy and Resources Sdn Bhd (RERB) for RM800 million. The acquisition will be satisfied via the issuance of new Ranhill Holdings shares.
The RTO gives RERB an alternative route to listing its assets after its failed initial public offering in July 2013. This was because the company failed to disclose material changes related to its listing.