KUALA LUMPUR: Eastern & Oriental Bhd's (E&O) share price has jumped 16.1% over three trading days since SIME DARBY BHD []'s plan to acquire a 30% strategic stake in the company at RM2.30 per share or RM766 million.
At 9.40am on Tuesday, Sept 6, E&O was up six sen to RM1.73 with 9.55 million shares, from its closing price of RM1.49 on Aug 29.
Sime Darby had said on Aug 29 that the acquisition was to extend its presence in the property development and hospitality sectors, beyond the Greater KL region, specifically in Penang and Johor.
Sime Darby was acquiring 273 million E&O shares and 60 million irredeemable convertible secured loan stocks (ICSLS) in E&O -- which on a fully diluted basis -- was about a 30% equity interest in the niche property developer.
Sime Darby will acquire the stake from E&O managing director Datuk Tham Ka Hon and several other major shareholders of E&O.
Both companies also entered into a three-year collaboration agreement to formalise a framework for their property development businesses.
At 9.40am on Tuesday, Sept 6, E&O was up six sen to RM1.73 with 9.55 million shares, from its closing price of RM1.49 on Aug 29.
Sime Darby had said on Aug 29 that the acquisition was to extend its presence in the property development and hospitality sectors, beyond the Greater KL region, specifically in Penang and Johor.
Sime Darby was acquiring 273 million E&O shares and 60 million irredeemable convertible secured loan stocks (ICSLS) in E&O -- which on a fully diluted basis -- was about a 30% equity interest in the niche property developer.
Sime Darby will acquire the stake from E&O managing director Datuk Tham Ka Hon and several other major shareholders of E&O.
Both companies also entered into a three-year collaboration agreement to formalise a framework for their property development businesses.
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