KUALA LUMPUR (Sept 29): Knusford Bhd’s share price shot up by 18 sen or 25.17% to 89.5 sen in Friday morning trade, its highest since April 21, 2021, after its major shareholder Tan Sri Lim Kang Hoo proposed to combine his stable of companies under an enlarged Ekovest Bhd.
At the time of writing, shares in Knusford — which is involved in construction and property — pared some gains to settle at 87.5 sen, 16 sen or 22.38% higher than its closing price of 71.5 sen on Wednesday (Sept 27), for a market capitalisation of RM85.6 million. It was the sixth biggest gainer on the local bourse.
On Wednesday, Lim proposed to undertake a reorganisation, rationalisation and merger proposal involving companies in which he is a major shareholder, namely Knusford, Ekovest, Iskandar Waterfront Holdings Sdn Bhd (IWH), and Iskandar Waterfront City Bhd (IWCity). Ekovest also owns about 62% of PLS Plantations Bhd.
In a letter sent to the companies, Lim said the main proposal is intended to streamline, reorganise, rationalise and merge the businesses and assets currently owned and controlled by himself and persons acting in concert, through the various public-listed and non-listed companies, as well as to consolidate his direct shareholdings in the various companies.
Furthermore, the proposals are aimed to mitigate any potential conflict of interests and speculations relating to the alignment of interest of Lim as a major shareholder of the companies. It will also eliminate many of the existing recurrent related party transactions and transfer pricing concerns among the companies, moving forward.
In morning trade on Friday, Ekovest slid one sen or 1.79% to 55 sen, for a market capitalisation of RM1.63 billion. The counter saw brisk trade with 36.55 million shares traded, almost double its 200-day average volume of 19.64 million. It was Bursa’s fourth most actively traded counter at the time of writing.
Meanwhile, IWCity dipped by one sen or 1.32% to 75 sen, for a market capitalisation of RM681.63 million, whereas PLS Plantations rose one sen or 1.11% to 91 sen, for a market capitalisation of RM402.25 million.
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Source: EdgeProp.my
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