Ajinomoto (Malaysia) Bhd continued its strong upward momentum on Tuesday, with shares trading at RM18.96 as of the time of writing, as the market reacted to a privatisation proposal from its controlling shareholder, Ajinomoto Co. Inc.
The stock was up RM3.76 or 24.74% in active trade, with intraday movement ranging between RM18.90 and RM19.08. Volume reached 15,059 lots, reflecting heightened investor interest following the announcement.
The rally comes after Ajinomoto Malaysia confirmed a proposal from its parent company to take the group private through a selective capital reduction and cash repayment exercise.
Under the proposed deal, minority shareholders are expected to receive RM20.00 per share, while Ajinomoto Co. Inc would become the sole shareholder upon completion of the exercise.
The company said the proposal is currently under review by its board of directors, excluding interested directors, with further announcements expected once deliberations are completed. The exercise remains subject to regulatory approvals.
Market participants have largely priced in the potential take-private offer, with the counter trading close to the RM20 indicative level during intraday sessions as investors assess the likelihood and timeline of completion.
