Narra gets shareholders’ nod to acquire concrete and cement assets from sister firms

KUALA LUMPUR: Narra Industries Bhd, which was queried by Bursa Malaysia over the spike of its share price on Monday, received shareholders' approval yesterday to acquire concrete and cement assets from its sister companies under Hong Leong Group.
According to a filing with Bursa Malaysia, 99.08% voted for the resolution of acquiring Hume Industries (Malaysia) Sdn Bhd, Hume Cement Sdn Bhd (HCement) and irredeemable convertible preference shares of HCement for RM448 million, to be satisfied with the issuance of new Narra shares.
Only 0.92% voted against the resolution. However, from the observation, just a few shareholders were present at the EGM yesterday.
Narra's board of directors declined to speak to reporters after the EGM.
A shareholder told SunBiz that the resolution was easily passed, as shareholders did not raise any questions on the acquisition plans.
"The EGM went smoothly without any interruption, all are happy with the results," he said.
The shareholder hopes Narra will achieve better financial performance following more diversified business portfolio, besides the existing furniture business. "We hope to see improved earnings after the company gets into the concrete and cement business," he added.
Narra, a company controlled by tycoon Tan Sri Quek Leng Chan, posted a net loss of RM4.05 million for the nine-month ended March 31, 2014.
Bursa Malaysia on Monday issued an unusual market activity query on Narra, which saw its share price surge as much as 62 sen or 29.81%, hitting the 30% limit-up level.
The firm then said it was unaware of any reason for the spike in its share price. Narra's share price went up 5 sen to close at RM2.44 yesterday, with only 761,000 shares traded.