Century Bond slips on KPS takeover plan

KUALA LUMPUR: Shares of  cement packaging company Century Bond Bhd (CenBond) fell in early Friday in lukewarm response to the takeover plan by Kumpulan Perangsang Selangor Bhd (KPS) at RM1.75 per share.

At 9.17am, CenBond was down three sen to RM1.68 with 619,600 shares done. KPS rose three sen to RM1.14.

The FBM KLCI rose 4.88 points or 0.29% to 1,683.68. Turnover was 231.26 million shares valued at RM118.98mil. There were 214 gainers, 90 losers and 226 counters unchanged.

KPS signed a deal to acquire 71.44% equity interest in CenBond for RM150.03mil and plans to take it private following the mandatory general offer for the remaining shares.

KPS and its unit Perangsang Packaging Sdn Bhd had inked a conditional agreement with CB Equities Sdn Bhd (which owns 50.55% in CenBond) and other vendors to buy the 71.44% stake comprising 85.73 million shares for RM1.75 cash per share.

CenBond was last traded at RM1.71, up three sen.

However, the transaction is conditional on KPS getting its shareholders’ approval at a general meeting. 

The company is 57.88% owned by Selangor state’s investment arm Kumpulan Darul Ehsan Bhd.