Stocks To Watch: IOI, Unico-Desa, Mudajaya, INS, LBS, Ho Wah Genting, Unimech

Written by Ho Wah Foon of    
Wednesday, 02 October 2013 19:29

KUALA LUMPUR (Oct 2): Based on corporate announcements today, stocks that may stir some interest tomorrow could include IOI, Unico-Desa, Mudajaya, INS, LBS, Ho Wah Genting and Unimech.

IOI Corp Bhd, via its wholly-owned unit IOI Plantation Sdn Bhd, is making a take-over offer for the remaining 60.45% stake it does not own in oil palm plantation firm Unico-Desa Plantations Bhd for RM1.17 a share.

IOI said the proposed mandatory general offer (MGO) for the remaining 518.11 million shares in Unico-Desa follows its acquisition of a 39.55% stake in Unico-Desa today before the announcement.

IOI said it paid RM396.63 million or RM1.17 a share for the 39.55% stake. The RM1.17 a share price compares with Unico-Desa's latest reported book value of 85 sen a share. Unico-Desa share close flat at RM1.18 after rising to a high of RM1.28 before the announcement.

IOI said it has bought the 39.55% stake in Unico-Desa from ELK Group Sdn Bhd, Eng Lee Kredit Sdn Bhd, Eng Lee Capital Sdn Bhd, and Amity Corp Sdn Bhd. These firms are controlled by Teoh Hock Chai, the managing director of Unico-Desa, and his associates.

According to IOI, the acquisition is expected to enhance the IOI Corp group’s core plantation operations and contribute positively to the future earnings of IOI Corp group. IOI closed 1 sen up at RM5.39 per share.

Mudajaya Group Bhd announced that its associate company has secured the supply of coal for its power plant in India.

It said RKM Powergen Pvt Ltd (RKMP), a 26% owned associate, notified the company today that RKMP has signed coal supply agreements with South Eastern Coalfields Ltd (SECL), a wholly-owned subsidiary of Coal India Limited, for the supply of coal for Phase II of the 4x360MW Coal-fired Thermal Power Plant at Ucchpinda, Chhattisgarh, India which consists of 3x360MW installed capacity of the power station.

The agreements shall remain in force for 20 years or of the life of the power plant, whichever is earlier.

“With the coal supply agreements for the total contracted quantity of coal of 6,240,857 MT per year, RKMP has secured full coal requirement for the operation of its power plant at Ucchpinda,” said Mudajaya.

INS Bioscience Bhd’s share trading will be suspended beginning next Wednesday (Oct 9) before being delisted from Bursa Malaysia on October 11.

INS, a Practice Note 17 firm, said Bursa Malaysia's decision to suspend trading of its shares follows INS’ failure to submit its regularisation plan within the required time frame.

INS said Bursa has rejected its application for a time extension up to November 30 this year to submit the regularisation plan.

INS has until next Tuesday (Oct 8) to appeal against the delisting notice.

LBS Bina Group Bhd exercised the option to bring back a strategic prime asset to the group after Dragon Hill Corporation Limited, a wholly-owned indirect subsidiary of the property developer, today acquired the entire equity interest in Lamdeal Investment Limited (LIL) for US$1.

LIL is involved in the management of Zhuhai International Circuit Limited (ZICL).

“LBS believes in the potential of the ZIC circuit land. This acquisition has come at an appropriate time as the group believes that it will benefit in the long term given the shortage of sizeable prime land in Zhuhai.

“Upon completion of the exercise of option, Dragon Hill will hold 100% of the entire issued and paid-up share capital of LIL and LIL will own 60 per cent of ZICL,” said LBS Managing Director Datuk Lim Hock San.

The Zhuhai International Circuit (ZIC Circuit) currently occupies some 264 acres of prime land strategically located next to the Lakewood Golf Club and the 197-acre piece of land earmarked for mixed developments.

“The decision to bring the ZIC Circuit back into the group will maintain the group’s presence in Zhuhai, China, and may in the future provide another opportunity for the Group to venture into property development there.”

LIL together with its joint venture partner had in 1992 formed a sino-foreign joint venture, ZICL, to jointly develop and operate China’s first professional racing track, the 264-acre ZIC Circuit.

Ho Wah Genting Bhd (HWGB) has proposed to acquire the entire issued and paid-up share capital of Rex Oriental Sdn Bhd (ROSB) for RM3 million to venture into the auto sector.

HWGB said it has entered into a share sale and purchase agreement with vendors, Quek Wang and Liew Jenn Lim, to acquire 400,000 ordinary shares of ROSB of RM1 each.

The principal activity of ROSB is investment holding and its 70% owned subsidiary, Orient Sun Motors Sdn Bhd (OSM), is involved in trading in motor vehicles.

The deal will be satisfied via internally generated funds and borrowings, said the company which also manufactures and trades wires and cables.

“The rationale for the proposed acquisition is to provide the company an opportunity to venture into the auto industry in Malaysia via OSM’s existing platform which could be immediately leveraged upon to gain traction in rolling out models from its Chinese automakers to generate revenue,” it said. 

It noted that in the motor industry the next wave will come from China. 

Unimech Group Bhd announced that the financial supervisory authority of Indonesia (OJK) has given  pre-approval for the listing of its 85%-owned indirect Indonesian subsidiary PT Arita Prima Indonesia (API) on the Indonesia Stock Exchange.

But the company said the pre-approval is not an approval to the listing application, and the approval for the listing application will be granted subject to the following conditions:
(i) OJK has completed its review of the adequacy and objectivity of the information disclosed by API;

(ii) API to confirm that there are no changes on the information and/or documents submitted in relation to the total number of public issue shares, issue price, details of issuance cost and the underwriting agreement.

In an earlier Bursa Malaysia filing, the engineering solutions company said it hopes to repay debts, to raise working capital and raise funds for its future expansion throughout Indonesia through the proceeds.