Cash-rich MAA Group hits limit-up, surges to multi-year high

For April, the 30-stock index was up 9.46 points or 0.58% from a month ago.

KUALA LUMPUR: Shares of low-profile MAA Group hit limit-up, surging the maximum 30 sen a share to a multi-year high of 90 sen on Thursday.

At 10.30am, it was up 30 sen to 90 sen with 4,900 shares done. There were eight million buy orders at 90 sen, according to stock market data.

It has cash and  cash equivalents of RM213mil as at Dec 31, 2018.

The cash-rich MAA Group Bhd’s major shareholder, the Melewar group, has proposed that the company undertake a selective capital reduction (SCR) and repayment of RM1.10 a share.

At RM1.10, this would be 83.3% or 50 sen above its last traded price of 60 sen on Tuesday before it was suspended on Wednesday. 

Melewar Acquisitions Ltd and Melewar Equities (BVI) Ltd collectively own 38.67% of MAA Group.

The funding for the SCR will be from MAA Group’s own funds.

The Practice Note 17 company has until April 30, 2019 to submit its regularisation plan to Bursa Securities for approval. The company said it does not intend to maintain the stock’s listing
status.

On Wednesday, it announced net losses of RM27.45mil in the financial year ended Dec 31, 2018 compared with net profit of RM25.13mil in FY17.

It was in the red with net losses of RM11.03mil in the fourth quarter compared with net profit of RM2.71mil a year ago. Its net asset per share was RM1.94.