Stocks To Watch Ogawa, Tanco, Astro, Mudajaya, EITA, DKLS, Brahim’s, Yee Lee, IJM, DVM


Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com   
Monday, 09 September 2013 19:41

KUALA LUMPUR (Sept 9): Based on corporate announcements today, stocks that could lure interest tomorrow include Ogawa, Tanco, Astro, Mudajaya, EITA, DKLS, Brahim’s, Yee Lee, IJM and DVM.

OGAWA WORLD BHD []  (OWB) announced that it has received a notice of voluntary conditional take-over offer for all its shares at RM1.05 per share from a Xiamen-based Chinese firm.

If the offer is successful, the offeror does not intend to maintain the listing status of Ogawa last traded at 86 sen, according to the offer document.

Ogawa said the offer will cover all the ordinary shares of RM0.50 each in OWB (excluding treasury shares) not already held by the offeror and all the new OWB shares that may be issued prior to the closing of the offer arising from the exercise of OWB’s executives’ share option scheme.

The acquisition will be satisfied wholly by cash at RM1.05 per OWB share.

The ultimate offeror of the takeover is Xiamen Comfort Science and TECHNOLOGY [] Group Ltd, a company listed on the Shenzhen Stock Exchange.

TANCO HOLDINGS BHD [] has proposed to reduce its issued and paid-up share capital comprising 334,886,726 ordinary shares of RM1.00 each via the cancellation of RM0.80 from the par value of each of the existing ordinary share of RM1.00.

After the capital reduction, the par value of each share will be reduced to 20 sen per unit and the total paid up capital of the company cut to RM66.97 million from RM334.88 million, the company told Bursa.

However, the proposed par value reduction will give rise to a credit amount of about RM267,909,381.

The company said it intends to use part of the credit amount to set-off the accumulated losses of Tanco and the group. The remaining credit after the set-off will be credited to the distributable reserves account.

As at end-June 2013, the Tanco Group has an audited accumulated losses of approximately RM142.21 million.

In addition to par value reduction, Tanco has also proposed a rights Issue of ICULS, to be undertaken on a renounceable basis, to raise at least RM15 million.

Astro Malaysia Holdings Bhd’s wholly owned unit MEASAT Broadcast Network Systems Sdn Bhd has lost a court appeal to claim US$303 million arbitration award against three Indonesian companies in Jakarta.

MBNS, together with seven other claimants, had applied to enforce the Singapore International Arbitration Centre’s (SIAC) awards against PT First Media Tbk, PT Direct Vision and PT Ayunda Prima Mitra in Indonesia. 

“The Supreme Court of Indonesia has dismissed its appeal against the CJDC’s decision,” Astro said.

An arbitral tribunal of the SIAC had in 2010 ruled in favour of the claimants, and granted them an award amounting to US$303 million plus interest. But the awards remain unpaid.

MUDAJAYA GROUP BHD []’s wholly-owned subsidiary RKM Powergen Pvt Ltd has signed an agreement with India-based South Eastern Coalfields Ltd for the supply of coal for the next 20 years.

“The agreement shall remain in force until the end of 20 years period,” the company said.

The agreement can be extended upon mutual agreement by both parties or of the life of the power plant, whichever is earlier.

The deal will include the annual contracted quantity of coal supply of 1,690,000 MT as per original letter of assurance issued earlier by South Eastern, it noted, while the delivered price of coal for coal supplies shall be the sum of base price.

EITA Resources Bhd has been appointed as the exclusive agent to distribute the REGIS moulded case circuit breaker in Malaysia.

In a filing to Bursa Malaysia, EITA said Hwa Shih Electric (M) Sdn Bhd  has appointed EITA's wholly-owned subsidiary EITA Electric Sdn Bhd  as exclusive agent for the product effective Sept 1 this year.

DKLS INDUSTRIES BHD [] is selling its prime commercial property in Melbourne Australia for A$15 million (RM45.5 million). The seller intends to use the sale proceeds to repay its debt. 

"The proposed disposal provides an opportunity for DKLS to unlock the capital resources of the property which is currently not generating any income to DKLS group and to realise the property at a fair market value whilst enhancing the group’s working capital.”

DKLS said the disposal is expected to contribute about 0.05 sen to the company's earnings per share for current financial year ending December 31, 2013.

Brahim’s Holdings Berhad (BHB) has proposed to undertake a private placement of up to 21,480,500 placement shares to raise RM25.78 million to repay bank borrowings and for its working capital.

The bonded warehousing, freight forwarding and transportation services provider said the proposed placement shares will represent up to 10% of the issued and paid-up share capital of the group.

BHB said the issue price would be determined and announced at a later date.

“The proposed private placement is expected to raise an estimated gross proceed of up to RM25.78 million based on the indicative issue price of RM1.20 per placement share,” said BHB.

YEE LEE CORPORATION BHD [] announced that its wholly-owned subsidiary will lose the distributorship for Johnson & Johnson products from Oct 1, 2013.

Yee Lee told Bursa Malaysia: “With reference to the distributorship agreement entered into between Yee Lee Trading Co. Sdn. Bhd and Johnson & Johnson Sdn. Bhd., Yee Lee wishes to announce that both parties have mutually agreed to terminate the agreement with effect from 1st October 2013.”

However, Yee Lee said the termination “is not expected to have any material impact on the group's earnings or net assets for the financial year ending Dec 2013.”

IJM Corp Bhd is selling a 40% stake in wholly-owned Kuantan Port to China-based port operator Guangxi Beibu Gulf International Port Group Co Ltd for RM333.92 million cash.

IJM Corp said its wholly-owned subsidiary Road Builder (M) Holdings Bhd has signed a share sale agreement with Guangxi Beibu's wholly-owned unit Beibu Gulf Holding (Hong Kong) Co Ltd, which intends to buy 38% of Kuantan Port Consortium Sdn Bhd for RM317.7 million from Road Builder.

IJM Corp said Beibu Gulf has also "executed a letter of undertaking" to buy another 2% in Kuantan Port Consortium for RM16.72 million from Road Builder's 100%-owned unit Essmarine Terminal Sdn Bhd.

"A strategic partnership with Guangxi will bring best practices of port management, and its wide network of clientele will enhance the capacity utilisation of Kuantan Port,” said the company.

DVM Technology Berhad announced that its wholly-owned subsidiary, DVM Innovate Sdn Bhd, has been awarded a two-year government service contract worth RM21 million.

The award is for application development, customization and managed services for about 2 years for a contract sum about RM21 million from the government sector.

The tenure of the award is expected to commence from September 2013 to December 2015 upon the final execution of the agreement.

This project is expected to contribute positively to the earnings and net assets of DVM Group for the financial years ending December 2013 to December 2015.