Mattress maker, Lee Swee Kiat Group gets UMA query

PETALING JAYA: Lee Swee Kiat Group Bhd has received an unusual market activity (UMA) query from Bursa Malaysia after its share price jumped 9.52% yesterday.
The company received the UMA query before announcing plans to buy US based mattress maker, Englander Sleep Products, L.L.C. (ESP) for RM4.57 million.
"We draw your attention to the recent rise in price and volume of your company's shares (trading activity)", the stock exchange stated in its query yesterday.
Swee Kiat Group had seen its share prices spiraling upwards early this month. Its shares closed at 34.5 sen yesterday, up 87% from 18.5 sen on March 4, 2015.
In its reply to the Bursa, Lee Swee Kiat Group said its was unaware of any corporate development relating to the group's business and affairs that may account for the UMA other than the announcement on asset sale and purchase agreement entered into between its unit LSK Mattressworld Sdn Bhd (LSKM) and ESP on March 3, 2015, which was released yesterday.
ESP designs, manufactures, and sells mattresses as well as is the owner of the Marks. The Marks is a well-known bedding trademark in USA established since 1894.
LSKM is currently the licensee for the Marks for a period of ten years ending October 2020.
"The sales under the Marks make up approximately 20% of the Company's total turnover. Outright acquisition of the Marks would ensure the Company having direct control of the Marks in perpetual," the group said.
Lee Swee Kiat Group said the Marks is gaining popularity in the region and is expected to continue to contribute positively in the medium and long term of the company's progress.