Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily, on September 23, 2015.

Techic Group (+ve)

TECNIC (Fundamental: 1.95/3, Valuation: 2.1/3) has risen 23.3% to a 3-year high of RM1.48 after it entered into a non-binding memorandum of understanding with Rohas-Euco Holdings Sdn Bhd (REH) for a proposed reverse takeover (RTO) last Monday. 

The RTO entails Tecnic acquiring all the equity interest held by REH in Rohas-Euco Industries Bhd (REI) for RM200 million, satisfied via the issuance of 317.46 million new Tecnic shares at 63 sen per share.

REI is principally involved in the design and fabrication of steel structures for high-tension transmission towers, microwave towers and substation structures.

Recall that Tecnic became a Practice Note 16 or cash company after it completed the disposal of its entire business to sister company SKP Resources Bhd for RM200 million in April. Therefore, Tecnic has approximately six months to regularise its status by acquiring a new core business to maintain its listing status.

Techic Group

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