Tuesday, December 21, 2010

Highway operators soar on takeover offers

KUALA LUMPUR: Highway operators PLUS EXPRESSWAYS BHD [] and MTD Capital Bhd advanced in early trade on Tuesday, Dec 21 after each had received separate takeover offers on Monday. At 9.30am, PLUS shares advanced 24 sen to RM4.60 while its warrants added six sen to 30 sen. MTD Capital jumped 44 sen to RM9.34.

PLUS received an offer from Jelas Ulung Sdn Bhd to acquire all of its business undertakings, including assets and liabilities for RM26 billion, or RM5.20 per share cash. RHB Research has raised its target price for PLUS to RM5.20 from RM4.60. Meanwhile, MTD Capital received a buyout offer from its major shareholders Nikvest Sdn Bhd, Alloy Consolidated Sdn Bhd, Alloy Concrete Engineering Sdn Bhd and Alloy Capital Sdn Bhd (joint offerors) to acquire the remaining shares they do not already hold (excluding 27.49 million treasury shares) at RM9.50 apiece. The joint offerors hold 131.48 million shares of RM1 each in MTD, representing 53.13%. The FBM KLCI rose 3.06 points to 1,498.94 at 9.30am. Other early gainers included Nestle, Hap Seng, Lion Forest Industries, S P Setia, Jaya Tiasa, Genting and Tenaga.

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