Takaso rises 3% on Dynavance buy, diversification

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KUALA Lumpur (Oct 3): Takaso Resources Bhd rose 3% after the condom, and baby care accessories manufacturer signed a share sale agreement to buy Dynavance Construction Sdn Bhd.

Yesterday, Takaso expressed its intention to acquire Dynavance for RM9.5 million cash.

Takaso said Dynavance might contribute some 25% or more to Takaso's net profit, thus diversifying Takaso's businesses to include construction and property development.

Today, Takaso shares advanced two sen to 65 sen at 10.12am for a market capitalisation of RM104.46 million as investors reacted positively to the news.

The counter has been traded actively with some 26 million shares changing hands, making Takaso the third most-active stock on Bursa Malaysia. For comparison, the FBM KLCI rose 4.74 points or 0.3%.

On Takaso, Kenanga Investment Bank Bhd wrote in a note today the immediate support and resistance for the share price are 59 sen and 64 sen respectively.