28 August 2014
KUALA LUMPUR: Rapid Synergy Bhd has bought 2.04 million shares in hotel chain Shangri-La Hotels (M) Bhd for RM14.65 million cash.
In a filing with Bursa Malaysia yesterday, Rapid Synergy said the investment represents a 0.46% stake in Shangri-La, based on the group’s total share capital of 440 million shares.
“The investment is made in the ordinary course of business and is consistent with Rapid Synergy’s long-term intention of deploying capital into suitable quoted investment opportunities that could enhance shareholder value in the long term,” it said.
The investment was funded via internally-generated funds.
“As the investment is cash funded, there is no impact on the issued share capital or shareholdings of substantial shareholders of Rapid Synergy,” said the group in its filing.
The precision toolmaker has been accumulating the shares in Shangri-La since July 30.
Rapid Synergy’s major shareholder and non-executive, non-independent director Datuk Dr Yu Kuan Chon holds a 2.84% stake in Shangri-La. Dr Yu holds a direct stake of 20.99% in Rapid Synergy and an indirect stake of 8.61%.
The Edge weekly in its latest edition reported market watchers as saying that Rapid Synergy could be turned into a potential real estate play due to the property assets it already holds.
Rapid Synergy ended four sen higher yesterday to reach its one-year high of RM6.03, bringing its market capitalisation to RM527.1 million. Since July 8 this year, the stock has gained 20.8%.
Meanwhile, Shangri-La’s counter closed two sen up at RM7.10 with a market cap of RM3.1 billion.
For the second quarter ended June 30, Shangri-La posted a net profit of 17.5 million, on revenue of RM120.7 million.
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