Friday 29 Mar 2024
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KUALA LUMPUR (Dec 21): Tecnic Group Bhd said it is still in the midst of finalising the due diligence inquiries and the terms and conditions of a definitive agreement with Rohas-Euco Holdings Sdn Bhd in relation to a proposed reverse takeover of Tecnic by the latter.

This follows a mutually agreed extension to execute the definitive agreement to Jan 31, 2016.

In response to an unusual market activity query by Bursa Malaysia, Tecnic said it is unaware of any unannounced corporate development that could account for the unusual trading of its shares, but had noted its non-binding memorandum of understanding (MoU) with Rohas-Euco was announced on Sept 21.

To recap, the MoU between the two parties was for Tecnic to acquire all of the equity interest held by Rohas-Euco in Rohas-Euco Industries Bhd, comprising 68,377,406 shares for RM200 million.

The exercise is a part of Tecnic's proposed regularisation plan to maintain its listing status on the Main Market of Bursa.

Besides the particular corporate exercise, Tecnic said it is unaware of any other rumour, report or any other possible explanation for the sharp rise in its share price.

On Friday, Tecnic shares gained 31 sen or 29.8% to close at its intraday high of RM1.35. Today, the counter extended its gains by as much as 14 sen or 10% to touch an intraday high of RM1.49.

The counter closed 3 sen or 2.22% higher at RM1.38, giving it a market capitalisation of RM54.5 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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