Delloyd Ventures surges after buyout offer raised

KUALA LUMPUR: Delloyd Ventures Bhd’s share price surged to multi-year highs of RM4.96 on Tuesday after its major shareholders raised their buyout offer by 40 sen to RM5.20 a share.

At 10.11am, it was up 14 sen to RM4.92, extending its gains from Monday ahead of the announcement. Turnover was 246,000 shares done at prices ranging from RM4.90 to RM4.96.

The automotive components manufacturing and plantations company said its major shareholder Chung & Tee Ventures Sdn Bhd increased the proposed cash offer from RM4.80 a share previously.

Chung & Tee Ventures is the single largest shareholder in Delloyd with a 34.24% stake. Chung & Tee Ventures and parties acting in concert with it, which collectively owned a 63.58% stake in Delloyd, had in May proposed to take Delloyd private via a selective capital reduction and repayment exercise at RM4.80 per share.

The group had then said the proposed exercise offered an opportunity for its shareholders to realise their investments in the company at a premium to the current and historical market price of the company’s shares.

It was noted that Delloyd’s shares had been relatively illiquid.