Pecca Group Bhd's share price showed an increase of 36 sen or 8.7% to RM4.50 in trading session on Bursa Malaysia today.
These factors are supported by the company's announcement of a proposed acquisition of 51% equity interest in Rentas Health Sdn Bhd.
At 11.22am, Pecca shares had surged to RM4.18 after trading at between RM4.17 and RM4.50 as of today.
At a peak of RM4.50, the company had a market value of RM846 million based on its 188 million issued shares.
Yesterday, Pecca announced a proposal to acquire 204,000 shares representing a 51% stake in Rentas Health from Teoh Zi Yuen worth RM100 million.
Zi Yuen is a subsidiary of Pecca group managing director Datuk Teoh Hwa Cheng.
According to Pecca, the purchase consideration will be completed through a combination of RM50 million cash and the issuance of 11.99 million new Pecca shares at an issue price of RM4.17 per share.
So far, Pecca's share price has 'rocketed' to its current level from the closing price of RM1.64 on January 4, 2021.
AmInvestment Bank Bhd analyst Jeremie Yap stated that the acquisition will increase Pecca's earnings per share for the financial year ending June 30, 2022 by around 40%.
It is also supported by additions to Cross’s upcoming business from the distribution and sale of personal protective equipment (PPE) and medical equipment.
Trading in the group's shares resumed today following a delay in conjunction with the announcement of cash and share transactions worth RM100 million yesterday.
