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With the global equity market recovering from covid, we are hit yet by another inflation storm fuel by rising interest rate from the US. Tension from Russia Ukraine war had contributed to volatile commodity and energy prices.

For Malaysia, most of the company share price had hit the rock bottom level. However, for some companies, the rock bottom price level is seen as an opportunity for major shareholder to do a takeover offer exercise due to the company underlying valuation or the future prospect of the company.

In 2022, there are numerous takeover offer exercise in the market. Let us look through a few example.

1. HEXTECH (Formerly known as COMPLETE LOGISTIC SERVICES BHD)

Takeover offer RM 2.50 (Dec 2021)

Current price - RM 13.00

up 500%

2. COMCORP 

Takeover offer RM 0.15

Current price - RM 0.90

up 600%

3. CITAGLOBAL

Takeover offer - RM 0.19

Current price - RM 0.26

up 40%

4. MBRIGHT

Takeover offer - RM 0.07

Current price - RM 0.15

up 100%

As we can see, most of the companies that got takeover will see share price heading upwards in the later time frame as the takeover offer goes unconditional.

As of 7 December 2022, PESONA takeover offer from WIE HOCK KIONG become unconditional.

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=221548&name=EA_DS_ATTACHMENTS

For a recap, PESONA METRO is a construction company. The major shareholder WIE HOCK KIONG is a former CEO of PUTRAJAYA PERDANA BHD which is in charge of more than RM 10 billion of development in Putrajaya.

As the covid pandemic rollback a lot of construction progress, it is a prime time to see Malaysia giving a much needed boost in the construction and infra structure development.

PESONA 

Takeover offer - RM 0.19

Current price - RM 0.235

Based on the example of takeover, the price can be up 40% to 600%.

If PESONA can go up 50% from offer price, share price can go RM 0.30

if 100%, then can go RM 0.40

How far can PESONA share price goes with this takeover offer? Only time will tell.

However, if PESONA can be a vehicle for the coming back of PUTRAJAYA PERDANA BHD into the market, that will be a good potential for it to go 500% up until RM 1.00

IMPORTANT NOTICE

Please be informed that I am not a professional or certified analyst. I am not a licensed consultant, just a normal retail investor. I am just sharing my ideas and opinion on the market outlook. Any company mentioned should not be interpreted as a buy/sell/trade call. Please do your own research and buy/sell/trade at your own risk.

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