Quick take: Daibochi shares, warrants jump on privatisation proposal

KUALA LUMPUR: Shares and warrants in Daibochi Bhd rallied on news that Scientex Bhd had proposed to take its subsidiary private for RM345.3mil cash.

At 10am, Daibochi's share price had eased off an intraday high of RM2.70 share to RM2.69, which represents a jump of 30 sen or 12.55% from the reference price.

There were over five million shares done within the first hour of trading.

Daiboci-WB surged 12.5 sen or 64.1% to 32 sen apiece, off the intraday peak of 32.5 sen, on the back of nine million shares exchanging hands.

Meanwhile, Scientex's share price was up seven sen or 1.53% to RM4.64 apiece with over 600,000 shares traded.

Scientex said in a Bursa Malaysia filing yesterday that the proposed voluntary takeover exercise would entail the purchase of 38.12% of Daibochi's issues shares excluding treasury shares for RM2.70 each, and 95.75% of its outstanding warrants for 32 sen each.

The offer price of RM2.70 per share represents a premium of 17.39% over the three-month volume weighted average market price (VWAP) up to the last traded price on Sept 10, 2021.

In addition, the offer price represents a premium of 221.43% over the latest unaudited consolidated net asset per Daibochi share of 84 sen as at April 30, 2021.

The offer price for the warrants represents a premium of 100% over the three-month VWAP of Daibochi up to Sept 10.

"To ensure uninterrupted supply to customers, it is crucial to future-proof Daibochi’s capabilities through implementation of risk mitigation and business continuity plans that are integrated with Scientex’s resources and internal processes.

“This will enhance Daibochi’s competitive edge and resilience, as well as reinforce the confidence among its multinational companies and local prominent brands," said Scientex CEO Lim Peng Jin.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Quick take , Daibochi , Scientex , markets , privatisation


Next In Business News

Households to drive loan growth
Pressure on ringgit
Lenders hiring to chase South Asia’s US$93bil tech deals
Edra wins bid to build power plant in Bangladesh
ACO Group zooms into green mobility sector
Nova Wellness expansion to continue
CIDB: Provide technology incentives
Bank Negara to improve process for motor claims
How will global tax reforms impact Malaysia?
Managing tax controversy, minimising tax uncertainty

Others Also Read