The year of 2014 had not seen much in take over / merger / acquisition exercise, except for a few companies that had been RTO for a back door listing. Amongst them are non other than Ecoworld RTO of Focal Aims, and the upcoming will be Ranhill listing through Symphony.
While foreign sharks are hungry for expansion, could Orna be another target in the coming days?
Let's have a peek on Orna.
Orna had been traded heavily earlier February this year, where the share price sky rocket before hitting a limit up and triggering a UMA from Bursa Malaysia. Currently, Orna had been consolidating at the range of RM 1.20. Orna might be looking forward for a surge in the coming days after consolidation at RM 1.20 is saturated, seeking for a higher ground soon.
Orna had been in the spot light recently where it's earning had started to show strong increase while it is trading below it's NTA of RM 1.60. With just 74m shares with a public float of around 48%, Orna is definitely a very interesting target for Oji Paper.
The Melaka based Orna Paper engages in the manufacture and sale of corrugated boards and carton boxes for the manufacturing sector in Malaysia. The company also provides corrugated flutes in single, double and triple walls, as well as in single face.
While Orna had been doing great lately, Orna financials had saw great improvement, where revenue had climbed steadily from 2009 to 2013, with FYE 2013 raking a net profit of RM 8.27m behind a revenue of RM 245.6m. EPS stand out at 11.2 cents for FYE 2013. Orna will be looking to perform better in FYE 2014 based on the market robust outlook for the year 2014.
What is even more interesting is that Oji Paper had been under some corporate pressure after failing to seal a deal with Muda Paper. As the cash rich Oji Paper is expanding, putting a price tag of RM 110m for Orna (Approximately RM 1.40 a share) doesn't seems to be a big problem for them as their previous heist had saw Oji offering more than RM200m for HPI privatization. Could Orna be the next target for Oji Paper?
While speculation is rife, Orna major shareholder is Instisari Delima Sdn Bhd (18.63 million shares or 25.1%) could be looking into a deal with Oji Paper for a buy out at around RM 1.50 per shares, putting Orna for a price tag at approx RM 110m. Currently, market insider could be looking set to see the deal going through before 2014.
I believe Orna will be a good company to be invested in, given the growing business in revenue and earnings, as well as the much anticipated take over by Oji Paper which could realized the share holder value in a faster pace.
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MQ Trader 3176 views | 3 d ago
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Frank Leong
208 posts
Posted by Frank Leong > 2014-04-24 10:45 | Report Abuse
this duck momentum won't last long