KUALA LUMPUR (Dec 19): Shares in Apollo Food Holdings Bhd spiked to a seven-year high of RM5.78 on Tuesday's morning trade session after it announced that Scoop Capital Sdn Bhd, the franchisee of Baskin-Robbins, is acquiring a controlling stake in the company.

The counter pared its gains to end the day 37 sen or 6.9% higher at RM5.77, making it the fifth top gainer on Bursa Malaysia.

Year to date, the share price has risen 48.70%. At RM5.74, its market capitalisation stood at RM459.2 million or RM5.80 per share.

On Monday, Apollo said that Scoop Capital is acquiring a controlling 51.31% stake or 41.05 million shares in Apollo for RM238.08 million cash.

Scoop Capital is purchasing the 41.05 million Apollo shares from Keynote Capital Sdn Bhd — the investment vehicle of Singaporeans Liang Chiang Heng and his younger brother Liang Kim Poh — at RM5.80 per share, a 7.4% premium to the last closing price, before the take over announcement, of RM5.40.

While Scoop Capital is obliged to extend an unconditional mandatory takeover offer to acquire all the remaining 48.49% stake in the group, it intends to maintain the listing status of Apollo on the Main Market of Bursa Malaysia.

Scoop Capital is 90%-owned by Datuk Cheah See Yeong, with the remaining 10% owned by his spouse Datin Soon Gock Lan.

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