KUALA LUMPUR: Shares of Emas Kiara surged in early trade on Tuesday, Nov 16 after it becomes a cash-rich company following the proposed disposal of its geosynthetic manufacturing business for RM100 million cash.
At 9.07am, it was up 18 sen to RM1.10. Turnover was 963,100 shares done.
The FBM KLCI was up 0.53 of a point to 1,502.09. Turnover was 75.22 million shares valued at RM43.24 million. There were 143 gainers, 40 losers and 116 stocks unchanged.
Emas Kiara is selling its geosynthetic manufacturing business for RM100 million cash to a unit of Royal Ten Cate N.V., which is listed on NYSE Euronext.
Its subsidiaries signed a sale and purchase agreement with Tencate Geosynthetics Asia Sdn Bhd to divest their geosynthetic manufacturing business. Upon completion of the proposed disposal, Emas Kiara would retain their business related to installation and engineering services of the products.
RHB Research said in a note to clients the disposal will result in gains of RM28.3m or 34 sen per share.'' Upon the disposal, Emas Kiara will become largely a cash company, with an estimated net cash of RM105.9m or RM1.26 per share.
"A decision will be made if the company will return all or part of the cash and/or utilise all or part of the cash towards new investment opportunities'.
"Recommendation and fair value rationalised to Trading Buy and RM1.26 (from outperform and RM1.52 previously)," it said.
At 9.07am, it was up 18 sen to RM1.10. Turnover was 963,100 shares done.
The FBM KLCI was up 0.53 of a point to 1,502.09. Turnover was 75.22 million shares valued at RM43.24 million. There were 143 gainers, 40 losers and 116 stocks unchanged.
Emas Kiara is selling its geosynthetic manufacturing business for RM100 million cash to a unit of Royal Ten Cate N.V., which is listed on NYSE Euronext.
Its subsidiaries signed a sale and purchase agreement with Tencate Geosynthetics Asia Sdn Bhd to divest their geosynthetic manufacturing business. Upon completion of the proposed disposal, Emas Kiara would retain their business related to installation and engineering services of the products.
RHB Research said in a note to clients the disposal will result in gains of RM28.3m or 34 sen per share.'' Upon the disposal, Emas Kiara will become largely a cash company, with an estimated net cash of RM105.9m or RM1.26 per share.
"A decision will be made if the company will return all or part of the cash and/or utilise all or part of the cash towards new investment opportunities'.
"Recommendation and fair value rationalised to Trading Buy and RM1.26 (from outperform and RM1.52 previously)," it said.
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