MWE Holdings Bhd (+ve)

SHARES in MWE Holdings Bhd (fundamental: 1.9/3, valuation: 1.8/3), which triggered our momentum algorithm last Friday for the first time this year, closed one sen or 0.61% higher at RM1.66.

It saw 1.24 million shares traded, almost 10 times its 200-day average volume of 130,343 shares.

On March 16, MWE Holdings Bhd received a privatisation offer of RM1.75 a share from tycoon Tan Sri Surin Upatkoon, via his company Pinjaya Sdn Bhd. Pinjaya proposes to undertake the privatisation via a selective capital reduction and repayment (SCR) exercise.

Pinjaya and parties acting in concert in the offer already owns an estimated 32.62% stake in MWE comprising 75.1 million shares. Surin is the ultimate offeror under the SCR.

At the current share price, the group is trading at 0.59 times its book value, giving it a market capitalisation of RM391.4 million.