KUALA LUMPUR: Penang-based D’nonce Technology Bhd, which returned to the black in its latest financial year, is said to be the target of a takeover exercise.
Sources said preliminary negotiations were ongoing at the shareholders' level.
Nothing is firmed up although the discussions are “very serious”, said a source.
Shares in the Penang-based company, which provides contract manufacturing services to support the hard disk drive industry and packaging materials for other industries, was trading at 37 sen apiece at the time of writing.
D’nonce, which has a market capitalisation of around RM70mil, has seen its stock trade between 22 sen and 46 sen in the past one year.
Its shareholding is quite diverse. The single largest shareholder of the company is its group MD and CEO Law Kim Choon, who holds a 24.48% block.
Individuals holding less than 5% each own the rest of the company.
In its most recent annual report, the company said given industrial challenges such as intense competition from existing and new players and the volatile prices of raw materials, D’nonce will “continue to embark on the development of new and innovative products, giving emphasis on product quality in order to stay competitive in the market.”
“D’nonce strongly believes that the market sector it is operating in is still on the growth path and the group can expect healthy growth in financial year 2018 and beyond.”
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