Written by Joseph Chin
Thursday, 29 July 2010 08:21
KUALA LUMPUR: Stocks are expected to open on a cautious note on Thursday, July 29 in line with the softer key Asian markets and weaker overnight close on Wall Street but positive corporate news could underpin sentiment.
Stocks to watch include MEASAT GLOBAL BHD [], WCT BHD [], GEORGE KENT (M) BHD [] and JERNEH ASIA BHD [].
MEASAT Global Network Systems Sdn Bhd (MGNS) has launched a takeover of Measat Global and to acquire all the ordinary shares of 78 sen each not already held by MGNS at RM4.20 per share. The total acquisition cost is RM662 million, which will be satisfied fully in cash.
Based on the offer price of RM4.20 per MEASAT share, MEASAT is valued at RM1.64 billion.
The offer price represents a premium of 10.5% over the closing price of MEASAT shares of RM3.80 per MEASAT share on July 27, being the last traded price prior to the announcement by MGNS of the conditional take-over offer of MEASAT.
MGNS is the single largest shareholder in Measat Global with 59.56%. The controlling shareholder in MGNS is billionaire T. Ananda Krishnan.
WCT proposed to issue RM600 million nominal value of serial fixed rate bonds of up to five years with up to 181.08 million detachable warrants on a “bought deal” basis to primary subscribers.
The corporate exercise also involved a proposed offer for sale of the provisional rights to allotment of up to 181.08 million WCT warrants by the primary subscribers at an offer price to be determined later.
The exercise included issuing up to 121.08 million WCT warrants to the WCT shareholders on a renounceable basis of one WCT warrant for every eight existing shares.
George Kent (M) Bhd and its partner have secured the RM129.8 million contract to construct and complete 160-million-litres-per-day water treatment plant in Kuantan.
The project was awarded by the East Coast Economic Region Development Council in an open tender. The project is scheduled for completion by Aug 12, 2013, which is 157 weeks from the site possession date of Aug 10, 2010.
Shares of Jerneh Asia climbed on Wednesday, July 29 on market talk of a corporate deal involving its insurance business.
In December last year, it announced the proposed sale of its stake in its insurance subsidiary. It had added then that Bank Negara had no objection in principle for it to commence preliminary negotiations with the relevant parties who have expressed interest to acquire 80% of the issued and paid-up share capital of Jerneh Insurance Berhad from Jerneh Asia.
On May 18 this year, Jerneh Asia said it and Paramount Global Assets Sdn Bhd, a unit of PARAMOUNT CORPORATION BHD [], have submitted an application to BNM to enter into an agreement with a potential buyer.
MALAYSIAN AIRLINE SYSTEM BHD [] expects a 5% annual growth in revenue from charter services due to high demand and the availability of resources.
Last year, MAS recorded about RM200 million in revenue from its charter flights, including hajj services.
OPCOM HOLDINGS BHD []'s net profit for the first quarter ended June 30, 2010 (1Q11) rose 37% to RM3.90 million from RM2.84 million a year ago due to sales of higher margin products.
Opcom's revenue climbed 17% to RM30.59 million from RM26.19 million due to the roll-out of the Fiber-To-The-Home (FTTH) supply contract awarded by TELEKOM MALAYSIA BHD [] to a subsidiary of the group.