Hot stock: Mercurius up 12.3% after proposal to acquire Malaysia grocery businesses

SHARES of Mercurius Capital Investment rose 12.3 per cent on Friday, after the Catalist-listed firm proposed to acquire 10 grocery businesses in Malaysia for S$36 million.

As at the midday break on Friday, the counter hit an intraday high of 7.8 Singapore cents. It was up 0.8 cent or 12.3 per cent at 7.3 cents after 107.2 million shares changed hands as at the midday break.

The company had requested a trading halt on Tuesday morning and lifted the halt on Friday before market open.

Mercurius entered into a term sheet with the businesses on Thursday and expects to sign a definitive agreement within 90 days. It will pay the store owners by way of an allotment and issuance of 200 million new ordinary shares at an agreed price of S$0.18 per share.

The company, which manufactures and sells bedding products and related household goods, said the proposed acquisition is expected to result in the diversification of its business portfolio and revenue stream.