KUALA LUMPUR: Straits Inter Logistics Bhd’s shares attracted strong trading interest in early trade Tuesday following the emergence of Singapore-listed Avarga Ltd as its substantial shareholder.
The oil trader and bunker operator jumped 25%, or five sen to 25 sen. It is currently the second most actively traded counter on Bursa Malaysia with 137 million shares done.
Straits-WA surged 79.17, or 9.5 sen to 21.5 sen with 149 million shares done.
Avarga’s wholly-owned subsidiary Avarga Investment Pte Ltd acquired 78.1 million shares, representing 10% equity interest, in the Bursa Malaysia-listed company via an off-market transaction at 17.5 sen per share, straits announced.
"After the stake acquisition, Avarga has expressed its interest to pursue further strategic collaborations with straits in the long run,” Straits said.
Straits group managing director Datuk Seri Ron Ho Kam Choy said the collaboration would strive towards bringing the company to greater heights.
Avarga is an investment holding company primarily involved in paper manufacturing, power generation and building materials distribution that operates in five countries.
Straits’ 55%-subsidiary, Tumpuan Megah Development Sdn Bhd, operates in 15 ports in Malaysia with a fleet of 13 vessels.