Tuesday, August 24, 2010

20100824 1027 Malaysia Corporate News.

QL Resources lays hands on rival
QL Resources yesterday acquired 11m shares, or 23.29% of Lay Hong, in an off-market transaction. The identity of the seller was not disclosed but it is believed to be London Biscuits. All three players are in the food business. The common denominator in the three companies is the need for eggs, which is what Lay Hong offers. Founded in the 1970s and listed since October 1994, Lay Hong is mainly involved in the production of eggs, broiler farming and feedmill activities. (Financial Daily)

Boustead 2Q net profit surges 212% to RM146.5m
Boustead Holdings’ net profit for the second quarter (2Q) ended 30 June 2010 surged 212% to RM146.5m from RM46.9m a year ago, mainly due to stronger palm oil prices and higher sales volume. Its revenue for the quarter increased to RM1.42bn from RM1.28bn in 2009, with earnings per share (EPS) of 15.68 sen. Boustead declared a second interim single tier dividend of 10 sen per share. For the six months ended 30 June, Boustead’s net profit jumped to RM236.7m from RM107.8m, on the back of a 20% increase in revenue to RM2.98bn from RM2.49bn in 2009. EPS came in at 25.45 sen. (Financial Daily)

HLBB gets shareholders’ nod to adjourn EGM
Hong Leong Bank (HLBB) yesterday obtained its shareholders’ approval to adjourn its EGM to a yet-to-bedetermined date. The EGM was to have been for shareholders to consider its proposed acquisition of the entire assets and liabilities of EON Capital for RM5.06bn cash, or RM7.30 per share, and a proposed renounceable rights issue of shares to raise gross proceeds of about RM1.6bn. This follows EON Cap’s decision last week to discontinue its EGM and to issue a fresh notice to convene an EGM at a later date to consider the proposed disposal. (Financial Daily)

Nadzmi does not rule out RM500m cash injection for Lotus
Proton Holdings chairman Datuk Seri Mohd Nadzmi Mohd Salleh did not rule the possibility of its subsidiary, Lotus Group International Ltd, requiring an additional RM500m over the next two years to develop new models. Nadzmi also confirmed reports that about RM290m had been advanced to Lotus. It was reported that Lotus required the cash injection before it could repay all amounts due to Proton. (Financial Daily)

Salcon acquires water treatment company in China for RM20.3m
Salcon via its unit Salcon Jiangsu (HK) Co Ltd has acquired 100% equity interest in China’s Yizheng Rong Xing Wastewater Treatment Company Ltd for RM20.28m. The acquisition is further to the signing of a water consolidation cooperation agreement on 1 Dec 2009, with the government of Yizheng City, China, for the integration and consolidation of water and wastewater works in Yizheng city, said Salcon in a statement yesterday. This is Salcon’s eighth concession in the Jiangsu Province, China. (Financial Daily)

Xingquan expects double-digit earnings growth to continue
Xingquan International Sports Holdings Ltd CEO Wu Qing Quan, who expresses confidence in the company sustaining a double-digit earnings growth in the current financial year ending 30 June 2011 (FY11), says he has no intention of divesting his equity stake in the sport shoemaker in China. Wu, who is the single largest shareholder with a 58.4% stake in Xingquan, said he would retain his shareholding, adding that any interested investor wanting to acquire a substantial stake would have to buy on the open market. (Financial Daily)

UMW buys stake in China oil company
UMW Holdings’ wholly-owned unit UMW China Ventures (L) Ltd will spend USD24.68m (RM77.5m) to buy 46,700 preferred shares, representing a 4.67% stake, in Hilong Holdings Ltd (HL Cayman) from owner Zhang Jun. In a filing to the exchange yesterday, UMW said the purchase would create value, synergies and future business opportunities for the group as the Hilong group undertakes drilling related activities in countries like China, Ecuador, Kazakhstan and others. (Malaysian Reserve) 

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