Hot stock: CFM rises 43.9% amid heavy trading after proposed acquisition

SHARES of CFM Holdings rose as much as 43.9 per cent on Thursday morning from when it last traded on May 28, amid heavy trading.

This comes after the company entered into a sale and purchase agreement to acquire 51 per cent of the total issued ordinary share capital of SING-SWE MM Biotechnology for an aggregate consideration of up to S$6.1 million.

As at 11.31am, the counter had risen 2.9 Singapore cents or 43.9 per cent to 9.5 cents after some 78.9 million shares changed hands. It later eased to trade at 9.3 cents, 2.7 cents or 40.9 per cent higher as at 12.02pm.

At Thursday's close, it was up 5.3 cents or 80.3 per cent to end at 11.9 cents. 

No married deals took place in early trade, according to ShareInvestor data.

The company said on Thursday morning that it will acquire 51 ordinary shares from vendors Wang Xinmeng, Gao Hong and New Energy Industry Sweden (NEIS), making SING-SWE MM Biotechnology its subsidiary. NEIS will own the remaining 49 per cent of SING-SWE MM Biotechnology's issued share capital.

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SING-SWE MM Biotechnology distributes and sells pharmaceutical products, including certain viral test kits. CFM, which is involved in the distribution and sale of gloves and other personal protective equipment, believes that the acquisition will provide additional and recurrent revenue streams.