KUALA LUMPUR: Shares of UNITED U-LI CORPORATION BHD [] were actively traded on resuming trade on Monday, June 13 after announcing last Friday that it was selling its three wholly-owned subsidiaries for RM200 million to Legrand France, SA.
At 9.40am, U-Li Corp rose 28 sen to RM1.23 with 12.4 million shares traded.
U-Li Corp said it would sell its entire stakes in United U-LI (M) Sdn Bhd, United U-LI Steel Service Centre Sdn Bhd and Cable-Tray Industries (M) Sdn Bhd.
U-Li Corp manufactures cable support systems and light fittings and it reported it posted net profit of RM3.28 million on the back of RM34.44 million in revenue.
Philip Capital Management research says U-Li Corp could be worth RM2.12 a share after the proposed sale of its cable support business''for RM200 milolion.
'Our break-out''value indicates ULICORP will worth RM2.12 per share.'' The RM200 million cash consideration alone works out''to RM1.52 per''share.
'Based'' on'' 30%'' discount,'' we'' expect'' ULICORP'' to'' trade'' around'' RM1.50 upon listing.'' The price will eventually improve when news''of cash distribution is firmed up,' it said in a note to investors last Friday, June 10.
At 9.40am, U-Li Corp rose 28 sen to RM1.23 with 12.4 million shares traded.
U-Li Corp said it would sell its entire stakes in United U-LI (M) Sdn Bhd, United U-LI Steel Service Centre Sdn Bhd and Cable-Tray Industries (M) Sdn Bhd.
U-Li Corp manufactures cable support systems and light fittings and it reported it posted net profit of RM3.28 million on the back of RM34.44 million in revenue.
Philip Capital Management research says U-Li Corp could be worth RM2.12 a share after the proposed sale of its cable support business''for RM200 milolion.
'Our break-out''value indicates ULICORP will worth RM2.12 per share.'' The RM200 million cash consideration alone works out''to RM1.52 per''share.
'Based'' on'' 30%'' discount,'' we'' expect'' ULICORP'' to'' trade'' around'' RM1.50 upon listing.'' The price will eventually improve when news''of cash distribution is firmed up,' it said in a note to investors last Friday, June 10.
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