Scomi Group Bhd surprised investors when it proposed to revise its current issued share capital reduction from RM224.96mil to RM3mil from the earlier RM40mil.
KUALA LUMPUR: Lee Swee Kiat Group Bhd
(LSK) dipped at midday on Tuesday, in line with the weaker broader market after announcing plans to buy Mattress Factory Outlet Sdn Bhd's (MFO) business.
At midday, shares of the natural latex mattresses producer was down 2.5 sen to 81 sen. There were 1.23 million shares done at prices ranging from 81 sen to 85 sen.
LSK is buying MFO's furniture showroom retail business and business intelectual property rights for RM2.78mil. MFO specialises in manufacturing and sale of furniture business.
The value of showroom fittings was RM1.53mil and value of MFO's trade mark at RM1.25mil.
LSK said the purchase price would be finance from its own funds.
LSK said the acquisitions were in line with its expansion plan in the domestic retail market.
“It is expected to generate synergistic contribution to the group’s bedding retail operation,” it said.
LSK said the acquisitions were expected to complement the existing bedding business of the group and increase the market share in the domestic bedding retail market.
CIMB Equities Research had on May 2 started coverage of LSK with an Add recommendation and a 12-month target of RM1.16. At that time, the share price was 72 sen.
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