KUALA LUMPUR(Dec 30): Yokohama Industries Bhd rose as much as 32 sen, or 25 %, to RM1.60 this morning on news its controlling shareholder HSG Investments Pte Ltd intends to sell its entire 62.16% stake, or 53 million shares in the automotive battery maker for RM90.1 million, or at RM 1.70 each.

As at 10.45 a.m, the stock was traded at RM1.47, up 19 sen or 14.8%, from its opening price with 90,000 shares exchanging hands.

The stock was one of the top gainers on Bursa Malaysia this morning.

In a filing with Bursa Malaysia yesterday, Yokohama said HSG had signed a heads of agreement(HoA) with Singapore-based Fordington Pte Ltd to sell the stake.

The proposed acquisition is conditional upon the favourable outcome of due diligence on Yokohama, and the negotiation and execution of a definitive agreement.

The HoA will allow Fordington to conduct legal, corporate, tax, technical and financial due diligence on Yokohama until Jan 26, 2015, with an exclusivity period up to Feb 11, 2015.

Theedgemarkets.com rated Yokohama’s volatility at 3 on a scale of 1 to 5, with 1 being the least volatile. The scale measures the volatility of a stock based on its share price movements relative to the whole market over a period.

In terms of valuation, theedgemarkets rated Yokohama at 1.2, with 3 suggesting a company gives higher than market average returns and is trading at a lower than average valuation

The edgemarkets also rated Yokohama’s fundamental score at 1 on a scale of 0-3, with 3 suggesting it is profitable and has strong balance sheet.