Denko shares jump 25% on moulding firm acquisition

PETALING JAYA: Denko Industrial Corp Bhd's share price jumped 25% this morning, after announcing that it is acquiring the entire stake in plastic injection moulding firm Integrated Manufacturing Solutions Sdn Bhd (IMS) for RM1.19 billion.
At 10.45am, the stock stood at RM1.60 with 2 million shares changing hands. Its market capitalisation stood at RM166.11 million.
Denko said the acquisition will be staisfied with the issuance of 1.03 billion new shares at an issue price of RM1.15 apiece.
Both IMS and Denko are both in plastic injection moulding business serving the same category of customers in the electrical and electronics industry.