This article first appeared in The Edge Financial Daily, on December 22, 2015.

KUALA LUMPUR: Tecnic Group Bhd said it is still in the midst of finalising the due diligence inquiries and the terms and conditions of a definitive agreement with Rohas-Euco Holdings Sdn Bhd in relation to a a proposed reverse take-over (RTO) of Tecnic by the latter.

In response to an unusual market activity (UMA) query by Bursa Malaysia yesterday, Tecnic said it is unaware of any unannounced corporate development that could account for the unusual trading of its shares, but had noted its non-binding memorandum of understanding (MoU) with Rohas-Euco announced on Sept 21.

To recap, the MoU between the two parties was for Tecnic to acquire all of the equity interest held by Rohas-Euco in Rohas-Euco Industries Bhd, comprising of 68,377,406 shares for RM200 million.

Besides that particular corporate exercise, Tecnic said it is unaware of any possible explanation for the sharp rise in its share price.

Last Friday, Tecnic shares gained 31 sen or 29.8% to close at its intraday high of RM1.35. The counter extended its gains by as much as 14 sen or 10% yesterday to touch an intraday high of RM1.49.

The counter closed 3 sen or 2.22% higher at RM1.38, giving it a market capitalisation of RM54.5 million.