KFM: to RTO or not to RTO, that is the question?

On December 13, 2016 Kuantan Flour Mills announced:


"KFM had on 9th December 2016 secured a Letter of Interest (‘LOI”) from Felcra on its interest to explore and possibility to participate in KFM’s equity."


On December 15, 2016 the company announced:


.... the Company had on 14th December 2016 received a letter from Felcra with details stated in the letter as below :

"After urgent deliberation of our register of interest to explore the possibility of participating in KFMB’s equity, we hereby inform that, effective immediately, we are retracting our register of interest and ceasing all exploratory pursuit to participate in Kuantan Flour Mills Berhad equity.

On a query from Bursa the company replied:

The Board of Directors of KFM wishes to inform that the Company is not aware of any particular reason on the above retraction and is in the process of seeking clarification from Felcra Berhad .

It all sounds rather strange, what has happened that changed the decision of Felcra so drastically, so quickly?

The share price of KFM went from RM 0.04 to RM 0.24, up 600%. Some people must have made a lot of money.

For KFM this is already the second time of an aborted RTO, which makes it even more curious.