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Tradewinds Shares Hit 5-Month High After $490 Million Buyout Offer

Kuala Lumpur, Malaysia
Tom Bonaventure | Photographer's Choice | Getty Images
Kuala Lumpur, Malaysia

Shares in Malaysian commodity firm Tradewinds (M) Bhd jumped to an five-month high on Wednesday following a 1.5 billion ringgit ($489.40 million) buyout offer by Malaysia's seventh richest man Syed Mokhtar Al-Bukhary.

Tradewinds surged nearly 15 percent to 8.90 ringgit on Wednesday, just a whisker from the offer price of 9.30 ringgit made by the reclusive tycoon.

The deal would result in the Syed Mokhtar leading a mandatory general offer for two units under Tradewinds, Tradewinds Plantations Bhd and national rice distributor Padiberas Nasional Bhd, for 4.03 ringgit and 3.25 ringgit per share respectively.

Shares of Tradewinds fell 3.07 percent to 4.10 ringgit on Wednesday, while Padiberas lost 0.6 percent to 3.29 ringgit.

The offer for Tradewinds comes after Syed Mokhtar's autos-to-property conglomerate DRB-Hicom Bhd took the country's largest automaker Proton Holdings Bhd private for $412 million in January.

(Read more: Malaysia IPO Market to Keep Edge Over Regional Rivals)