KUALA LUMPUR (April 1): Super Enterprise Holdings Bhd, which manufactures product decorating and labelling solutions and sells labelling machines, has attracted interest from NASDAQ-listed Multi-Color Corp (MCC).

In a filing with Bursa Malaysia today, Super Enterprise (fundamental: 2.5; valuation: 1.8) said it has received a non-binding indication of interest from MCC dated March 27, 2015 to “explore a potential transaction” involving its shares.

“MCC 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, adding that it has agreed for MCC to undertake a due diligence exercise.

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

MCC is listed on the NASDAQ Global Select Market Exchange, and is based in Cincinnati, Ohio, United States. The firm provides labelling solutions to global leading manufacturers of home and personal care, wine and spirit, food and beverage and specialty consumer products. As at Mar 31, 2015, it has a market capitalisation of U$1.15 billion (RM4.25 billion).

Nevertheless, Super Enterprise cautioned that the above interest from MCC is at an “exploratory” stage.

“There is no assurance that a definite offer from MCC will materialise. The board notes the recent increase in its share price and wishes to remind shareholders to trade with caution,” it added.

Trading in the securities of Super Enterprise has been suspended from March 31 till April 1.

From RM1.083 a year ago, the counter had risen 152.16% to chart a five-year high of RM2.73 before its suspension on March 31, with a market capitalisation of RM113.78 million.

Super Enterprise posted a net profit of RM7.33 million in the financial year ended March 31, 2014, on revenue of RM123.88 million.

MCC serves national and international brand owners in North, Central and South America, Europe, Australia, New Zealand and South Africa with a comprehensive range of the latest label technologies in Pressure Sensitive, Cut and Stack, In-Mold, Shrink Sleeve and Heat Transfer. It employs approximately 2,700 staff across 29 operations globally.

(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.)