KUALA LUMPUR: Sarawak Consolidated Industries Bhd (SCIB) today told Bursa Malaysia Securities Bhd it has been offered 22 acres of land for acquisition, by the Land and Survey department of Sarawak.
This was in response to an unusual market activity (UMA) query Bursa Securities made on Tuesday after the company's shares came under heavy selling pressure.
Short selling in the company's shares were suspended two days in a row because its share price fell more than 15 per cent, two days straight.
It was the second most actively traded counter for the day.
SCIB's share price closed 35.93 per cent lower to 53.5 sen a share, with some 202.49 million shares changing hands.
SCIB said the letter of offer for land to expand the group's production capacity was received on Jan 4, 2024.
It told Bursa Securities the management is in the midst of discussion and considering on the acceptance of this proposal, and the board thought it more appropriate to release announcements to Bursa Securities once a decision is made.
Save for the above, the board said it is not aware of any corporate development relating to the group's business and affairs that has not been previously announced that may account for the trading activity including those in the stage of negotiation/discussion.
SCIB supplemented the response to Bursa Securities with a press statement to assure assures stakeholders that the company is operating as normal and remains focused on the company's strategic objectives and growth plans.
"As a publicly-traded entity, we recognise that share price volatility can occur due to various market factors. SCIB does not have any influence over its share price movements and is not aware of any specific reasons for the recent trading activity. However, it's important to note that SCIB has turned profitable in the latest financial quarter, reflecting the effectiveness of our strategic initiatives and operational efficiencies," SCIB managing director Ku Chong Hong said in a statement.
He added that SCIB is steadfast in executing its strategic plan, as evidenced by recent project wins and ongoing corporate activities.
"Our focus remains on delivering excellence in our projects, maintaining financial discipline, and pursuing growth opportunities that align with our core strengths. This commitment to our strategic direction is fundamental to our continued profitability and long-term success," Ku said.