Mintye Bhd (-ve)

TRADING of shares in Mintye Bhd (fundamental: 1.3/3, valuation: 1.2/3) triggered our momentum algorithm yesterday for the third time since July 25.

The stock finished unchanged at RM1.25 after 161,600 shares crossed, sharply higher compared with its 200-day average trading volume of 4,294 shares.

Mintye shares have been on an uptrend this week, rising 30% since the company’s main shareholder offered on Monday to take the automotive friction materials maker private. Yatee & Sons Sdn Bhd had proposed a selective capital reduction and a corresponding capital repayment of RM1.30 per Mintye share.

Yatee, who as at last Thursday held 35.98 million shares in Mintye representing a 59.17% stake, offered to pay shareholders, who hold the remaining 24.82 million shares or 40.83%, a total capital repayment of RM32.27 million.