Yokohama Industries Bhd (-ve)

Yokohama (Fundamental: 1.0/3, Valuation: 0.6/3) is principally involved in the manufacturing of automotive batteries. 

The stock has seen increased trading interest since the company announced its controlling shareholder, HSG investments Pte Ltd’s intention to sell its entire 62.17% stake. Its share price surged a whopping 32% from just RM1.28 on Dec 29 to close at RM1.69 yesterday. 

The sale, priced at RM1.70 per share, to Singapore-based Fordington Pte Ltd (Fordington), was completed on Wednesday. Fordington has made an unconditional takeover offer for the remaining shares it does not own at the same price. 

Yokohama will be privatized should Fordington obtain full control of the company. 

Although the company’s net profit jumped 68% to RM13.6 million in 2013 due to process optimisation, profitability for 9M2014 declined 62% y-o-y as a result of higher scrap costs and expenses.

This article first appeared in The Edge Financial Daily, on February 13, 2015.