Merge offer may put rubber gloves back on investors sight

 

Semperit AG Holdings will not make an immediate stimulus to re-rate the rubber gloves industry despite the fact that it voluntarily offers Latexx Partners Bhd RM 603 million.

 

 

An analyst told this was a surprise and could be put a spark in the industry. he said there could be a re-rating, but it would not be too soon.

 

 

The Austria-based Semperit Investments Asia offers to merge and purchase shares at RM 2.30 per share and RM 1.77 per warrant.

 

 

It was said that the offer price per share was 28.5% premium to the closing price last week and 36.9% to the one-month average price. A bank analyst said that this merge will put back the rubber backs into the sight of many investors.

 

 

“The first being Adventa Bhd and now Latexx. Investors could probably be looking at which company would be the next one to be taken over. This will prompt investors to look at rubber glove companies,” the analyst said.

 

 

He also said there are no more rubber glove firms left for those who want to takeover because the companies left have shares that are expensive. (RJA)