Anzo gets another UMA query after stock slumps 35%

KUALA LUMPUR (April 17): Anzo Holdings Bhd has been slapped with yet another unusual market activity (UMA) query by Bursa Malaysia, after its share price plunged by 19.5 sen or 35.14% to 36 sen today.

This is the second UMA query for the group within a month; it was queried on March 28 after its share price jumped to 54.5 sen on the previous day from 29 sen on March 13. The company has replied that it was not aware of any corporate development that would have contributed to the rally.

Anzo announced on April 13 that it has received a letter of intent from KL Northgate Sdn Bhd for a construction contract worth up to RM1.21 billion involving a mixed-development project called "Paragon @ KL Northgate" in Selayang.

The transaction involves a related party, Anzo's group managing director Datuk Eddie Chai, who also owns 24.5% of KL Northgate. Anzo's share price closed at a five-year high of 60 sen on the day of the announcement.

The group has been loss-making since the financial year ended Dec 31, 2012 (FY12). For the first nine months of FY16 (9MFY16), Anzo narrowed its net loss to RM5.9 million from RM7.01 million in 9MFY15.

Based on its last traded price, Anzo shares are trading at about 2.7 times their price-to-book value. — theedgemarkets.com

For more stories, download TheEdgeProperty.com pullout here for free.