KUALA LUMPUR (June 10): Kumpulan Powernet Bhd, which share price had more than doubled to 78.5 sen today in slightly more than a month, announced certain substantial shareholder and a director of the company are negotiating and finalising the terms of a share sale agreement to dispose their shares held in the company to a potential buyer.

Kumpulan Powernet told this to Bursa Malaysia after market close today, in response to the regulator’s unusual market activity (UMA) query, following the recent sharp rise in share price.

Other than the above, the wrap-knitted fabric manufacturer said it is unaware of any other possible explanation to account for its unusual trading activity.

There are also no rumours, reports, nor corporate developments relating to the group’s business and affairs that has not been previously announced, including those in the stage of negotiation or discussion, that may account for the trading activity, the company said in the filing.

Shares of Kumpulan Powernet closed half a sen lower at 78.5 sen apiece today, after rising to hit a high of 84 sen, prompting queries from the market regulator.

A total of 3.29 million shares were traded today, compared with its 200-day average trading volume of 81,577 shares.

The stock has been trading largely below 50 sen since August 2018, until trading volume picked up last month. Since its closing price of 33.5 sen on May 9, the counter has risen 134% to now be valued at RM59.78 million.