Reuters reported that shares of United Fiber System Ltd surged as much as 15% on Monday, extending gains on expectations the forestry firm will benefit from its new coal mining business after it struck a SGD 1.5 billion reverse takeover deal.

By 0223 GMT, United Fiber shares were 12.8% higher at SGD 0.044 with 63.5 million shares traded. It was the most actively traded stock by volume on the Singapore exchange and the number of shares traded was 2.7 times its average daily volume traded over the last five sessions.

A local dealer said "Previously, the company was almost dead and this is seen as a revival. With the reverse takeover, its new business in coal mining is seen as pretty attractive."

United Fiber shares jumped 39% on Friday after the company had entered into an agreement with Indonesian coal miner PT Dian Swastatika Sentosa Tbk to help it focus on its coal-mining business.

(Sourced from Reuters)