Instacom rises 4.35% on proposal to buy major stake in aluminium fabrication company

Instacom Group Bhd ( Financial Dashboard)'s share price rises 4.35% this morning following a proposed a bonus issue of up to 657.1 million new shares on the basis of one bonus share for every three shares held to reward its shareholders.

The company also announced the proposal to purchase a major stake aluminium fabrication company Neata Aluminium (Malaysia) Sdn Bhd for RM73.58 million yesterday.

At 11.15am, the stock gained 0.5 sen to 12 sen. A total of 2.632 million shares were traded so far today.

In a filing with Bursa Malaysia yesterday, Instacom (fundamental: 1.25; valuation: 0.9) had proposed to acquire 5.3 million shares, representing a 43.6% equity interest in Neata Aluminium RM73.58 million from Golden Oasis Resources Sdn Bhd.

Instacom had said the purchase will be funded through the issuance of new Instacom shares and cash of RM13 million from the proceeds of the rights issue exercise completed last month.

Under share sale agreement, Golden Oasis has agreed to guarantee that the cumulative aggregate profit after tax of Neata for the financial years ending Dec 31, 2015 (FY15), and FY16, will not be less than RM34 million.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.