Golsta Synergy slips on mandatory general offer

KUALA LUMPUR: Golsta Synergy Bhd's shares slid 9.27 per cent yesterday following the announcement of the conditional mandatory general offer (MGO) by businessman Tan Sri Clement Hii Chii Kok at RM2.10 a share.

The stock hit an intra-day low of RM2.19 before closing 23 sen lower at RM2.25, compared with Friday's close, making it the fifth biggest loser in the stock market. A total of 346,600 shares were traded.

This was on the back of the FTSE Bursa Malaysia KLCI losing 2.06 points to end at 1,828.68.

Volume on the market roseto 3.06 billion shares worth RM2.08 billion, from 2.98 billion shares worth RM2.39 billion.

Latest data shows that Golsta Synergy now has a market capitalisation of RM101.6 million.

Hii, the group managing director of SEGi University Group, has emerged as a major shareholder in the company with a 36.69 per cent stake, triggering a conditional MGO.

This was after he bought the shares through GS Capital Sdn Bhd, comprising 12.60 million units, on Friday.

Golsta Synergy incurred net losses of RM3.67 million for the nine months ended December 31 2013.

This was mainly due to impairment of trade debts, as well as initial opera-tional loss in the investment holding and property development segment.

Golsta Synergy manufactures and supplies industrial processing plant and machinery.

It also undertakes engineering-related projects.