MEGB has been buying back its shares

Since yesterday, MEGB has been involved with a share buy-back exercise.

10 000 shares were purchased at RM 0.365 on Wednesday and a whooping 23 300 000 units today at RM 0.34 to RM 0.35 per share. The total consideration paid in these two days was RM 8.02 million.

Historically in corporate Malaysia, when a company buys back its shares, it is when the share is trading at a discount. In a previous post, I mentioned that the intrinsic value of this counter is way over RM 0.50.

If MEGB was to be stripped for cash, shareholders would make a tidy gain.

The counter closed at RM 0.34 today, with a net buying volume of 495 000. (550 700 buyers versus 56 700 sellers)