Hot stock: Khong Guan surges 15.4% after investment announcement
SHARES of K03 : K03 0% jumped as much as 15.4 per cent to reach a one-week high of S$1.57 on Tuesday, after closing at S$1.36 on Monday.
The counter added S$0.13 or 9.56 per cent to S$1.49. About 45,400 shares worth S$70,000 changed hands.
The price movement came after Khong Guan announced on Monday its investment plans in SGProtein, a producer and seller of plant-based meat alternatives. The biscuit manufacturer agreed to buy a 30 per cent stake for S$1.5 million in cash, which will make SGProtein an associated company to Khong Guan.
In a filing to the Singapore Exchange, Khong Guan said: "The proposed investment in SGProtein represents a new and exciting opportunity for growth for the company in Singapore and the region, which are expected to offer a nascent but growing and potentially sizeable market for plant-based food products."
The proposed investment will be funded through internal resources, and is not expected to have any material impact on Khong Guan's net tangible assets and earnings per share for FY2021.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Hotel Properties prices 5-year notes at 5.1%
Apple to hold launch event on May 7, with new iPads expected
OUE Reit obtains S$600 million unsecured sustainability-linked loan
US: Wall St opens higher as more earnings roll in
GE Aerospace raises earnings goal on strong engine sales
BRC Asia to buy 19.9% of steel reinforcement company for S$16 million