Super Enterprise advances 13% after US-listed firm shows interest

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KUALA LUMPUR (Apr 2): Super Enterprise Holdings Bhd rose as much as 35 sen or 13% to RM3.08 on news Nasdaq-listed Multi-Color Corp was interested to buy a stake in the Malaysian firm.

Both Multi-Color and Super Enterprise have a common business in labelling solutions.

At 10:39am, Super Enterprise (fundamental: 2.5; valuation: 1.8) shares pared gains to trade at RM2.89, with some 697,100 shares done. It was the second-largest gainer across the local bourse.

At 11:13am, the stock changed hands at RM2.87. Super Enterprise's share trade resumed today following a two-day suspension last Tuesday (Mar 31) and yesterday (Apr 1).

In an announcement with Bursa Malaysia yesterday, Super Enterprise said it had received a non-binding indication of interest from Multi-Color to “explore a potential transaction” involving Super Enterprise shares.

“MCC (Multi-Color) requires, among others, a due diligence to be satisfactorily completed before it can proceed to the stage of making a definitive offer involving the shares of Super Enterprise, if applicable,” Super Enterprise said in a statement.

The scope of the due diligence will include the operations of Super Enterprise and its subsidiaries, besides customers, suppliers and financials of the group.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)