New high for Dagang NeXchange Bhd
KUALA LUMPUR: Plastic injection moulding company, Denko Industrial Corporation Bhd saw its share price jumped to muti-year high of RM1.66 early Tuesday as its major shareholder unveiled a RM1.19bil corporate exercise.
At 9.32am, Denko was up 26 sen to RM1.54. There were 974,700 shares done at prices ranging from RM1.51 to RM1.66.
The FBM KLCI rose 2.39 points or 0.14% to 1,743.86. Turnover was 341.37 million shares valued at RM166.88mil. There were 191 gainers, 177 losers and 300 counters unchanged.
Denko’s executive chairman and controlling shareholder Datuk Seri Foo Chee Juan plans to inject his privately-owned plastic injection moulding firm into Denko for an indicative price of RM1.19bil.
Denko had inked a heads of agreement with Foo and Datuk Fong Chiu Wan to buy Integrated Manufacturing Solutions Sdn Bhd (IMS) via 1.03 billion new Denko shares at an issue price of RM1.15 apiece.
Denko’s current paid-up in 104.46 million shares now. This will see its share base jump to 1.13 billion shares.
The two vendors will end up with about 90% of the shares in Denko even taking account the implementation of its other proposal on Monday - a private placement of 10.45 million new Denko shares.
Foo, who made a mandatory takeover offer (MTO) for Denko at 60 sen per share earlier this year, had then stated that he would like to maintain the company’s listing status. The MTO received lacklustre response, and Foo currently holds 52.23% in Denko via 99.9%-owned vehicle Oregon Technology Sdn Bhd.
Denko said it and IMS were both in the plastic injection moulding business serving the same category of customers in the electrical and electronics industry.
“The proposed acquisition is undertaken by Denko as part of its plastic injection moulding business expansion strategy to grow its revenue and customer base, and to expand its production capacity, which in turn will improve its financial performance,” it said.
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