This article first appeared in The Edge Financial Daily, on April 27, 2016.
Tanah Makmur Bhd (+ve)
Tanah Makmur Bhd (fundamental: -/3, valuation: -/3) triggered our momentum algorithm for the third time this year, after the counter emerged as the second top gainer yesterday, after it resumed trading following a one-day suspension pending a material announcement.
It rose as much as 26 sen or 17.69% to RM1.73, before easing to close at RM1.67, still up 13.61% or 20 sen, after 5.29 million shares changed hands, compared with its 200-day average volume of 271,326 shares.
Yesterday, the group announced that its major shareholder, Crown Prince of Pahang Tengku Abdullah Sultan Ahmad Shah, together with parties acting in concert (PAC) with him, plans to privatise Tanah Makmur via a selective capital reduction and capital repayment of RM1.80 per share.
The exercise involves 39.81% of the issued and paid-up capital of Tanah Makmur and will entail the capital repayment of RM285.13 million to entitled shareholders. The offer price is at a 22.45% premium to its previous closing price of RM1.47 last Friday.
TMAKMUR (5251) - Stock With Momentum: Tanah Makmur http://www.theedgemarkets.com/en/node/275271
