Jetson surges to new high on takeover plan

PETALING JAYA: Shares in construction company Kumpulan Jetson Bhd, together with its loan stocks and warrants, shot to new highs in heavy trading yesterday.

The stock surged 31 sen, or 19%, to RM1.93 while Jetson-LA gained 26 sen to RM1.76 and Jetson-WA rose 17 sen to 94 sen.

Jetson is involved in building and civil construction, property development, hostel management and manufacturing.

The company is a takeover target for Superior Pavillion Sdn Bhd (SPSB) and Odyssey Wealth Sdn Bhd (OWSB), which are led by brothers S.M. Nasarudin S.M. Nasimuddin and S.M. Faliq S.M. Nasimuddin.

A dealer with a brokerage said the buying interest seemed “irrational”, given that the present prices were way above the offer price for the shares and outstanding loan stock of RM1 per share and 93 sen per irredeemable convertible unsecured loan stocks 2002/2012 (Iculs).

“Maybe investors are betting that the offeror would revise the prices again,” he said.

SPSB, the largest shareholder of the company with a 33.15% stake, and OWSB had raised the offers earlier this month from 70 sen per share and 65 sen per Icul previously. The offer price for the warrants remains at 0.01 sen each.

Shareholders have until Oct 1 to decide on the offers. The board has appointed Kenanga Investment Bank as independent adviser for the deal.

A head of research said the present price levels were not reflective of Jetson’s fundamentals but investors were buying in anticipation of the future plans that the new shareholders would inject into the company after the exercise.

Yesterday’s closing share price represented a 25% premium over Jetson’s net tangible asset of RM1.54 per share as at end June.

Jetson turned in a profitable second quarter ended June 30 with a net profit of RM1.2mil compared with a net loss of RM726,000 in the first quarter due to improved margins and cost-cutting efforts.

Revenue rose marginally by 7% to RM26.9mil in the second quarter from RM25.1mil in the preceding three months.

Last week, executive director and co-founder Tee Keng Kok’s indirect shareholding in the company increased by 0.94% to 1.15% after his son, Joe Jer, bought 400,000 shares.

Jetson’s property projects include the development of semi-detached, bungalows and terrace houses in Kamunting, Perak, and the 78-acre site in Bukit Cherakah, Selangor, for medium-cost double-storey homes.

Its subsidiary, PJS Development Sdn Bhd, holds a 25-year concession to manage Universiti Putra Malaysia’s student housing.

Meanwhile, its manufacturing division makes, among others, customised rubber-moulded parts for the automotive, motorcycle, electronic and electrical sectors which are also exported to countries like the United States, Germany, Britain, Spain, India, China and Japan.