Scientex among top gainers, Daibochi loses big on acquisition news

 Publish date: Thu, 15 Nov 2018, 12:28 PM

KUALA LUMPUR: Packaging manufacturer Scientex Bhd emerged as one of the top gainers, while Daibochi Bhd suffered its biggest loss on Bursa Malaysia in the early session today, after the former planned to acquire a major stake in the latter.
At 9.57 am, Scientex’s stock price jumped 16 sen or 1.84 per cent to RM8.83, with 71,900 shares traded, while Daibochi’s share dipped 27 sen or 13.56 per cent to RM1.72 with 309,700 shares changing hands.
In a filing to Bursa Malaysia yesterday, Scientex said it had proposed to acquire a 42.41 per cent stake in Daibochi for RM222.5 million to enable it to penetrate the global market by offering high quality packaging at competitive prices.
Meanwhile, Kenanga Research has upgraded its call for Scientex to “market perform” with a higher target price of RM8.50 from RM7.80, following the proposed acquisition.
In a note today, the research house admitted that they were surprised, but fairly positive over the news as a takeover of Daibochi would be synergistic in the longer run, with both companies operating at different ends of the manufacturing spectrum.
“We are comfortable with our ‘market perform’ call post accounting for foreseeable upsides, although we may review our valuation basis again, pending further confirmation of the longer-term synergies and potential mandatory takeover if the deal goes through,” it added.- BERNAMA


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Chart Stock Name Last Change Volume 
SCIENTX 9.15 +0.01 (0.11%) 3,300 
DAIBOCI 2.11 0.00 (0.00%)

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