Sime’s E&O premium to rise?
Sime Darby’s already expensive acquisition of Eastern & Oriental (E&O) shares could look even more pricey after the surprise announcement last night that the latter will be converting an estimated 220.1m loan stocks into ordinary shares before year-end. When the 220.1m shares enter the market at the end of the year, the resulting dilution in book value per share coupled with a potentially large share overhang could well make Sime’s RM766m stake in E&O come at a greater premium as the price-to-book value of its acquisition rises and the share price falls. (Financial Daily)
Only a third of RM33bn bonds for PLUS buyout will be backed by Govt
The Government will not back the bulk of the RM33bn in bonds that will be issued for the buyout of PLUS Expressways, sources said. “Only about one-third of the bonds will have a government guarantee, which means that most of them will be rated based solely on the business viability and cashflow of PLUS,” one source said. It was disclosed on Wednesday that a special purpose vehicle called Projek Lebuhraya Usahasama (PLUS) will become the asset owner and operator of the highways and will be issuing the RM33bn bonds. PLUS in turn is owned by another special purpose vehicle called PLUS Malaysia SB, which is owned by UEM Group and the Employees Provident Fund (EPF). (StarBiz)
BRDB denies rumours it has called off disposal of prime assets
Bandar Raya Developments (BRDB) is still deliberating the sale of its prime assets and denied that it has called off the deal. Sources also noted that no appointment had been made yet by BRDB of any independent international property valuation firm to manage the tender for the sale, something that the company said it would do. (StarBiz)
New substantial shareholder in Perdana Petroleum
O&G interest Sarawakian Tiong Chiong Hiiung's purchase of a 8.15% stake comes amid talk that rival Dayang Enterprise is looking to do the same. A Sarawakian chicken breeder has emerged as a substantial shareholder in oil and gas firm Perdana Petroleum. Tiong bought an 8.15% stake by virtue of his direct shareholding in Achiever Development SB, which is believed to be a vehicle of the Tiong family in Sarawak. Tiong is also the managing director of publicly-traded CCK Consolidated Holdings, a company founded by his father, Datuk Tiong Su Kuok. (BT)
Global Transit secures RM101m in regional bandwidth sales
Global Transit Communications SB, an independent regional Internet Protocol Transit provider in Asia, has secured RM101m in regional bandwidth sales to leading telecommunications providers in Asia as of mid-November 2011. To date, Global Transit serves 140 customers from various countries in Asia, many of them Tier 1 fixed and mobile telecommunications companies, establishing itself as a trusted and reliable regional player. (Bernama)
MMHE earnings up 3.2% to RM80m but revenue halves Malaysia Marine and Heavy Engineering reported a 3.2% increase in net profit to RM80.2m in the quarter ended Sept 30 from RM77.7m a year ago though its revenue had fallen by more than half. Revenue during the quarter fell 54.7% to RM463.1m from RM1.022bn. EPS were 5.0sen compared with 5.80sen. MMHE said group profit before taxation of RM100.4m was 4.2% higher than the RM96.4m recorded in the preceding quarter due to the engineering and construction and marine repair and conversion segments. In the 9M period from January to September, earnings fell 15.2% to RM159.5m from RM188.3m in the previous corresponding period. Revenue slumped 35.2% to RM1.42bn from RM2.19bn. (Financial Daily)
WCT 3Q earnings up 28.5% to RM39m on-year WCT reported a 28.5% increase in earnings to RM38.3m in the 3Q2011 from RM30.6m a year ago, mainly due to higher contribution from the civil engineering and construction division. Revenue was marginally higher by 1.3% to RM362.0m from RM357.1m. EPS were 4.87sen compared with 3.88sen a year ago. However, the 3Q’s revenue and net profit were lower when compared with the second quarter where the revenue was RM376m and earnings at RM38m. For the 9MFY2011, the earnings rose 15.3% to RM114.5m from RM99.3m in the previous corresponding period. Revenue, however, declined 17.1% to RM1.05bn from RM1.27bn. (Financial Daily)
YTL Corp posts lower 1Q earnings on mobile broadband division YTL Corporation’s earnings fell 9.7% to RM251.8m (US$80.5m) in the 1Q2012 from RM278.9m (US$89.1m) a year ago. The lower earnings due to loss incurred in the nascent ‘Yes’ mobile broadband division. The group revenue grew 3.1% to RM4.54bn from RM4.41bn but pretax profit declined 15% to RM530.1m from RM623.8m. (Financial Daily)
Tan Chong 3Q net profit rises 10.6% to RM54.56m Tan Chong’s net profit for the 3Q2011 rose 10.6% to RM54.6m from RM49.3m a year earlier, due mainly to favourable foreign exchange rates. Revenue for the quarter rose to RM905.4m from RM871.6m in 2010. EPS were 8.36sen compared to 7.56sen in 2010. For the 9MFY2011, net profit rose to RM185.1m from RM177.7m in 2010, on the back of an increase in revenue to RM2.98bn from RM2.67bn. (Financial Daily)
APM Automotive 3Q net profit dips 15% to RM26.84m APM Automotive’s net profit for the 3Q2011 fell 15.2% to RM26.8m from RM31.7m a year ago, partly due to currencies and operational upgrades. Revenue was marginally higher at RM297.2m from RM291.5m in 2010, due mainly to higher vehicle production. EPS fell to 13.71sen from 16.18sen in 2010. For the 9MFY2011, net profit fell 12.2% to RM82.7m from RM94.2m, while revenue decreased to about 1.7% RM875.7m from RM890.9m in the previous corresponding period. (Financial Daily)
Kossan 3Q net profit falls 17.2% to RM23.64m Kossan Rubber’s net profit for the 3Q2011 fell 17.2% to RM23.6m from RM28.6m a year earlier, due mainly to higher cost of latex. Revenue for the quarter, however, improved marginally to RM278.5m from RM275.6m. EPS were 7.39sen compared to 8.93sen a year ago. Kossan declared a first interim dividend of 3sen per share tax-exempt for the FY2011 to be paid to on Dec 20. For the 9MFY2011, Kossan’s net profit fell 24.2% to RM67.5m from RM88.9m, despite revenue increased just 1.9% to RM810.6m from RM794.9m in 2010. (Financial Daily)
Fajarbaru 1Q earnings slump 63% to RM1.5m Fajarbaru Builder’s earnings fell 63% to RM1.5m in the 1Q2012 from RM4.2m a year ago. Revenue was however, increased by 96.8% to RM55.2m from RM28.0m but EPS fell to 0.92sen from 2.64sen. (Financial Daily)
Ta Ann records US$386,000 loss from China venture Ta Ann recorded a loss of US$386,000 from its venture in China where the original investment was US$4m. It had repatriated the proceeds from the land sale from China to Malaysia while the machinery had been shipped back and installed at the Sibu plywood mill. Ta Ann also said it had received the China government’s approval to wind up the subsidiary, Ta Ann Eco-Timber Industries Pty Ltd on Nov 14. (Financial Daily)
La Nina to stir severe rains in oil palm growing Malaysia A weak-to-moderate La Nina weather pattern will trigger severe monsoon rains in Malaysia's key oil palm growing regions from this month till next March, the weather office said on Thursday, potentially disrupting harvesting and boosting prices. The weather office said for November and December, parts of the key oil palm growing state of Sabah on Borneo island as well as Johor and Pahang in peninsula Malaysia will experience 20-40% more rainfall than their long term means for the period. These three states alone account for 60-70% of total Malaysian production. Industry analysts such as Dorab Mistry have cut their output estimates for Malaysia and Indonesia in response to prospects of La Nina weather affecting yields, forecasting prices to go above RM3,300 in January. (Reuters)
SGX, Bursa to link up in June The chief executive officers of Asean Exchanges today announced the rollout plan for the Asean Trading Link which will see the participation of member exchanges taking place progressively in stages. The first stage will see the connectivity of Singapore Exchange and Bursa Malaysia in June next year and the Stock Exchange of Thailand coming in in August the same year after the trading engine goes live. The 3 bourses will represent 70% of the market capitalisation of the seven-member collaboration, thus offering substantial investment opportunities for investors. (Bernama)
Khazanah mum on Proton speculation Khazanah Nasional appeared to be open to a management buyout (MBO) or takeover of Proton Holdings Bhd but it stopped short of rebutting market speculation. The recent strong run in Proton shares sparked rumours of apossible takeover for the carmaker from its own management or rivals like Naza Group and DRB-HICOM Bhd. On Wednesday, Proton MD Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir said that he and other senior company executives will be keen to buy over the national carmaker if offered. However, Syed Zainal Abidin dismissed the speculation that he and Proton chairman Datuk Seri Mohd Nadzmi Mohd Salleh have jointly bid for the company. (Business Times)
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