KUALA LUMPUR: Berjaya Corporation Bhd and Redtone International Bhd’s stocks were traded higher in early session after the former launched a takeover bid on the telecommunication company at 80 sen per share.
As at 10.24 am, Berjaya Corp’s stocks were 3.0 sen higher at 47 sen with 40.56 million shares transacted while Redtone appreciated a sen to 84 sen with 2.23 million shares transacted.
On Friday, Berjaya Corp acquired 10.53 per cent stake in Redtone for RM56.08 million in an off-market deal from Indah Pusaka Sdn Bhd.
Following the acquisition, the group, together with persons acting in concert (PACs) now hold a 35.84 per cent stake in Redtone.
Kenanga Research said the takeover offer was triggered by a technical general offer rather than a hostile takeover, however, this offer willlikely to lapse as the offer price was below Redtone’s current market price.
“Having said that, we advocate long-term investors to continue holding their shares in Redtone given the recent emergence of two strong major shareholders, namely, Sultan of Johor and Berjaya Group, suggesting that some interesting corporate exercises could be in the making,” it said in a note. -- BERNAMA