Hot Stock - PDZ falls actively after a report that Efogen takeover falls through

KUALA LUMPUR (Feb 17): PDZ Holdings Bhd was the most actively traded company on the stock exchange this morning after news involving its takeover of Efogen Sdn Bhd has hit a brick wall.

At 11:40am today, PDZ shares fell 1.5 sen or 9.7% to 14 sen with some 240.98 million shares done.

PDZ had risen in the past several trading days from 12 sen per share to a high of 15.5 sen when the speculative news on the purchase of Egogen emerged.

PDZ announced last Friday that it had not put in any proposal to acquire shares of Efogen Sdn Bhd.

According to the Financial Daily today, an executive familiar with the deal confirmed that the PDZ’s talks with Efogen had stalled.

“This deal has been aborted ... it’s not fair for me to talk about it or give you the details,” the executive said, adding that given PDZ’s clean balance sheet, there are still other suitors, but declined to elaborate.

A dealer from OSK Investment Bank told theedgemalaysia.com today: “The company did not deny that they’re on the lookout for companies to acquire, but any movements on the company currently are purely speculative. They’re not a profitable company at the moment.”

Written by Jonathan Gan of theedgemalaysia.com