$SCABLE (5170.MY)$
PN17 company Sarawak Cable (SCABLE, 5170, main board industrial stock) failed to reach an agreement with the White Knight, causing the rescue plan to fall through. The stock price plummeted nearly 26% at one point, but towards the end experienced a major turnaround, rising by 3.23%.
Perhaps investors are happy to see the agreement fall through, as it may attract better White Knights and lead to people entering the market.
Alternatively, it may be that major shareholders are intentionally selling stocks, making large purchases at the end and taking advantage of the opportunity to leave, but this is not certain.
Yesterday, the company announced on the Malaysia Exchange that they were unable to reach an agreement with Serendib Capital on the exclusive company relationship stipulated at the end of 2023.
Earlier, Sarawak Cable confirmed that the United Kingdom investment institution Serendib Capital would become the white knight to rescue the company and inject 0.25 billion ringgit to help the company restructure.
The news of the rescue briefly caused the stock to soar to a high of 48 cents, but later, amid intense volatility, the stock price has slipped.
Source: Nanyang Siang Pau
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