Hot Stock Scomi shares rise on possible vote for IJM entry

Hot Stock Scomi shares rise on possible vote for IJM entry
Business & Markets 2013
Written by Shalini Kumar of theedgemalaysia.com
Friday, 18 January 2013 12:49

KUALA LUMPUR (Jan 18): SCOMI GROUP BHD []’s shares rose in morning trade following a report that some shareholders could be voting for IJM Corp to come in as its biggest shareholder, having previously opposed the move.

Some previous reports indicated that Scomi’s major shareholders wereheaded for a split over IJM’s strategy to acquire a stake of around 25% in the group.

"This should be good news for the company. IJM is a good company even though it is not in the same line. It also means new funds will be coming into the company. I think the resolution should pass at the
meeting,” said Goh Kay Chong, a senior dealer at SJ Securities.

At 12.16pm, Scomi’s shares were trading at 37.5 sen, up half a sen or 1.4%, on 6.88 million shares done, after hitting the most active list. Earlier, it had hit a high of 38 sen.

Scomi’s extraordinary general meeting set for Jan 31 could see the sole resolution of issuing RM110 million worth of convertible redeemable secured bonds to IJM being passed.

IJM first surfaced as a stakeholder in Scomi in September 2012, when it subscribed for a private placement at 33 sen per share, or a total of RM33 million.

Scomi was in debt at the time, since its RM200 million debt papers had been downgraded after a delay in an asset sale in Nigeria that was supposed to have netted it RM57.6 million.