KUALA LUMPUR: Datuk Thong Kok Khee is weighing the possibility of expanding his stake in Insas beyond the 33 per cent threshold, a move which will automatically force the tycoon to buy out the entire company, sources say.
They said Thong could offer anything between RM1.10 and RM1.25 a share to take Insas private and consolidate his position in the company.
However, chances are that an offer in the range of RM1.25 a share may be spurned by minority shareholders because it is way below the break-up value of the company.
Filings to the stock exchange show that Thong currently has an indirect 23.11 per cent stake in Insas.
The stock is up by some 45 per cent this year, after having been "stuck" at the 60-sen-a-share level for nearly a decade.
Mercury Securities head of research Edmund Tham said if Insas can keep up the pace of its earnings, it will be on the radar of most retail investors.
The company's first quarter pre-tax profit came in at RM61.54 million for the period ended August 30 2013, versus RM30.02 million previously.
Its first quarter profit nearly matched the RM62.58 million pre-tax profit for its entire financial year 2012.
Thong, who serves as an executive director in Insas, also has a direct stake amounting to some 0.34 per cent in the company.
This year has been a good year for Insas, partly because stocks linked to Thong have been on an uptrend since May.
Inari Amertron Bhd, more than 35 per cent owned by Insas, started the ball rolling after Affin Research upgraded the stock.
The ACE Market-listed entity, which has met all the required conditions for a transfer to the Main Market of Bursa Malaysia, has gone up by more than 275 per cent this year. The stock currently trades between the RM1.52 and RM1.59.
If the rabbit is out of the hat then it should'nt been difficult to go to Rm1.10 at least next week. Datuk thong should offer at least Rm1.35 to go private.
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林俊松
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Posted by 林俊松 > 2013-11-28 15:23 | Report Abuse
Coming to RM1??