KUALA LUMPUR (March 21): Shares in SCGM Bhd touched a 10-month high on Thursday, as the former food packaging company’s acquisition plan drew the attention of investors.

SCGM rose as much as 12% or 7.5 sen to 68 sen, its highest since May 3, 2023. The counter pared some gains later to close at 64.5 sen, still up four sen or 6.61%. Trading volume more than quadrupled its 200-day average after 2.17 million shares changed hands.

No institutional analysts cover the stock.

SCGM, a so-called cash company classified under Practice Note 16 (PN16) status following the disposal of its core business, is now valued at RM124.87 million on Bursa Malaysia.

On Wednesday, SCGM announced that its substantial shareholders are injecting their agriculture-related business, Eramas Global Group Sdn Bhd, into the company as part of its regularisation plan.

Eramas is involved in the sale and distribution of coconut-related products, palm oil and fat products, and dairy products to local and overseas markets, as well as manufacturing of coconut and palm oil-related products, a filing with the local bourse showed.

The proposed acquisition will be paid either by cash or issuance of new shares at 61.5 sen apiece, SCGM noted.

SCGM was classified as a cash company under PN16 status in September 2022, after it completed the disposal of Lee Soon Seng Plastic Industries Sdn Bhd to Mitsui & Co Ltd and FP Corp for about RM556.99 million cash.