Thursday 28 Mar 2024
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KUALA LUMPUR (Sept 21): Tecnic Group Bhd, whose share price hit its all-time high today, has proposed a reverse takeover (RTO) on steel structure fabricator RohasEuco Holdings Sdn Bhd (REI) valued at RM200 million.

The corporate exercise is part of its regularisation plan to maintain its listing status on the Main Market of Bursa Malaysia.

In a filing with Bursa Malaysia today, Tecnic said it has entered into a non-binding memorandum of understanding (MoU) with REI for the proposed RTO.

The RTO entails Tecnic acquiring all the equity interests held by the vendor in REI, comprising 68.38 million shares, for RM200 million.

The purchase consideration will be satisfied via the issuance of 317.46 million new shares in Tecnic to REI at an issue price of 63 sen apiece.

Tecnic said both parties have agreed to negotiate exclusively in good faith the detailed terms and conditions of the proposed acquisition with the intention to finalise and enter into a sale and purchase agreement within two months from the date of the MoU.

It added that the MoU comes with an automatic extension of one month thereafter or such other period as the parties may mutually agree upon.

Tecnic, which is a plastic mold design and fabrication manufacturer, slipped into Practice Note 16 status in July, following the disposal of its entire business to sister company SKP Resources Bhd for RM200 million.

Shares in Tecnic rose nine sen or 8.11% to close at its all-time high of RM1.20 today, after 136,200 shares changed hands. The current price gives it a market capitalisation of RM48.47 million.

(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.)

 

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