Tasco share price rise on acquisition of Meriah Selalu

PETALING JAYA: Tasco Bhd, which is acquiring the entire equity interest in Meriah Selalu Sdn Bhd (MSSB), saw its share price rise 1.28% this morning.
At 10.30am, its share price rose 1.28% or 3 sen to RM2.38 with a total of 31,200 shares traded. Its share price rose 2.17% or 5 sen to close at RM2.35 on Friday with a total of 21,900 shares traded, giving it a market capitalisation of RM470 million.
Last Friday, Tasco said it is acquiring MSSB for an indicative cash consideration of RM15.71 million, subject to a maximum purchase consideration of RM16 million.
MSSB is principally engaged in operating a container depot and providing services of storing, handling, cleaning and repairing of containers. It also owns a 2.41ha leasehold land with a single-story site building in Port Klang, which is being used as a container depot.
The land's market value is RM16 million as appraised by CCO & Associates based on a valuation report dated Oct 3, 2017. The property fetches an annual rent of RM24,792.
The property is located adjacent to an existing warehouse owned and operated by Tasco. Due to the close proximity, Tasco said it may use it to complement its existing warehousing operations and to cater for additional future demand, should the need arise.