Ireka's share price rise 7.50% on news of SSA with CRRC UT

PETALING JAYA: Ireka Corp Bhd’s share price rose 7.50% this morning after it signed a share subscription agreement (SSA) with CRRC Urban Traffic (Europe) Co Ltd (CRRC UT).

At 10.57am, its share price was 4.5 sen or 7.50% higher at 64.5 sen with a total of 983,500 shares traded. The stock fell 1 sen or 1.64% to close at 60 sen yesterday with a total of 36,800 shares traded.

The SSA will see CRRC UT emerging as a substantial shareholder holding 8.48% equity interest. In addition, Ireka also signed a memorandum of understanding with CRRC UT to explore business opportunities.

CRRC UT is a member of the China-based CRRC Group, which manufactures rolling stock and rail related products and systems.

Ireka said the investment from the joint venture will provide the ideal opportunity to diversify into a number of new areas, in particular, urban traffic solutions and rail infrastructure related projects.