SYF Resources Bhd’s share price plunged as much as 8.5 sen or 20% to 34 sen in morning trade on Bursa Malaysia on Thursday (Oct 7) after the furniture maker flagged a day ago the possibility of earnings per share (EPS) dilution due to an increase in its number of issued shares following several proposed corporate exercises, which include the acquisition of a 100% stake in M&A Securities Sdn Bhd from Insas Bhd in an all-share deal valued at RM222 million.
Insas Bhd is listing its stockbroking arm M & A Securities Sdn Bhd (M&A) via a reverse takeover of furniture maker SYF Resources Bhd. The securities firm is valued at RM222 million, representing a price-to-book valuation of 1.2 times which is generally higher than most banks listed on Bursa Malaysia and a price-to-earnings ratio of 11.8 times.