KUALA LUMPUR (July 27): Mieco Chipboard Bhd's single largest shareholder Purnama Kuantum Sdn Bhd (PKSB) has ceased to be a substantial shareholder in the company on termination of Conditional Letter of Agreement dated Jan 21 this year.
In a filing with Bursa Malaysia today, Mieco (fundamental: 0.65; valuation: 0.9) said the cessation took place after PKSB mutually terminated the conditional letter of agreement with Ambang Sehati Sdn Bhd and BRDB Developments Sdn Bhd (BRDB).
The filing said the termination was due to unfulfilment of conditions, but did not elaborate.
Recall that, Mieco saw the emergence of PKSB as the single largest shareholder after PKSB purchased some 119.19 million shares or a 56.76% stake in the company in January this year.
PKSB bought the shares from Ambang Sehati and BRDB.
Mieco is principally engaged in the manufacturing of particleboards, which are commonly used as a core material for home and office furnitures.
In the first financial quarter ended March 31, 2015 (1QFY15), the company returned to the black with a net profit of RM3.2 million compared with a net loss of RM3.17 million a year ago; revenue was at RM80.28 million, up 6% from RM75.75 million in 1QFY14.
Shares in Mieco, which have been trending up since June 29 (67 sen), have gained 71.6% to close at RM1.15 today, for a market capitalisation of RM241.5 million.
(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)