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KUALA LUMPUR (Dec 13): Classic Scenic Bhd, which opened at 42 sen a share in Wednesday morning trade, later climbed as much as 12.2% to a three month-high of 46 sen, after proposing to diversify into the shoes and clothing retail business.
At the time of writing, the stock had pared some of its gains to hit 45 sen — still up four sen or 9.76% from Tuesday — giving it a market capitalisation of RM170.72 million. Trading volume stood at 2.05 million thus far.
Year to date, however, Classic Scenic’s share price had fallen 38.36%.
On Tuesday, the company proposed to acquire a 51% stake in Redina Malaysia Sdn Bhd, a shoes and clothing company, for RM35.7 million cash to reduce the group’s dependence on its existing wooden picture frame moulding business.
Redina is an importer, general merchant and dealer of, among others, shoes, clothing and articles, with a focus on apparel and undergarments. It is the brand licensee in Malaysia for Renoma, Jockey, Moto Guzzi, Alfa Romeo, Valentino Creations, Nautica, Crocodile, Arnold Palmer and Beverly Hills Polo Club.
Classic Scenic is in the midst of broadening its income streams by identifying and engaging in new viable businesses. On Nov 20, the company announced that its wholly-owned unit, Lim Ket Leng Marketing Sdn Bhd, had incorporated 10 wholly-owned subsidiaries to facilitate expansion into the food and beverage business.
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