KFMB shares tumble 61% on Felcra retraction

PETALING JAYA: The share price of Kuantan Flour Mills Bhd (KFMB) tumbled 61.22% or 15 sen to 9.5 sen last Friday following the Federal Land Consolidation and Rehabilitation Authority’s (Felcra) retraction of its interest to explore and participate in KFMB’s equity.

KFMB’s shares were suspended for trading a day earlier as Felcra, the potential white knight of PN17 company KFMB, bowed out of deliberations to launch a reverse takeover of KFMB.

Last Thursday, KFMB said it is retracting its register of interest and ceasing all exploratory pursuit to participate in KFMB equity after its urgent deliberation.

It is not known what made Felcra end its deliberations abruptly and Felcra did not respond to queries.

Felcra had stated its interest in a reverse takeover of KFMB in a letter dated Dec 9, 2016 that was subsequently announced by KFMB last Tuesday (Dec 13). KFMB’s shares jumped more than three fold last Wednesday to hit 25 sen from Tuesday’s closing of 8 sen, after the news of Felcra’s interest came out.