Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Wednesday, 04 December 2013 20:09
KUALA LUMPUR (Dec 4): Based on corporate announcements today, the stocks to watch tomorrow could include the following:
Ekovest Bhd announced that it has received a letter from Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd appointing the company as the master contractor for DUKE Phase-2.
The three-year contract, valued at RM1.183 billion, is expected to be completed at the end of 2016.
Ekovest will be responsible for the design, construction, safety, landscaping, maintenance of construction works and signage works related to DUKE Phase-2.
“The appointment of Ekovest as the master contractor for the DUKE Phase-2 is expected to contribute positively to our future earnings,” said the company.
Rubber glove makers said the 15% electricity rate hike next year will hurt them as electricity cost accounts for 10% of their total production costs.
As a result, they are urging the government to implement the tariff increase gradually so that industry players will have enough time to “adjust to the new cost structure”.
In a press statement, president of the Malaysian Rubber Glove Manufacturers Association Lim Kwee Shyan, said: “The electricity hike would increase production costs significantly for rubber glove manufacturers.”
Members of the association include the world’s leading listed rubber glove producers such as Top Glove Corporation Bhd, Supermax Corporation Bhd, Kossan Rubber Industries Bhd and Hartalega Holdings Bhd.
Puncak Niaga Holdings Bhd told Bursa in a filing that it held a special board of directors' Meeting yesterday on the offers made by KDEB to purchase 100% equity in PNSB and 70% equity in SYABAS.
“The executive chairman and major shareholder of Puncak Tan Sri Rozali Bin Ismail was not present at the said meeting during the board’s deliberation on the said subject matter and hence, the board had abstained from deliberation and decision making.”
But in a separate press statement, Puncak said: “The manner in which the offers were presented to the public by the Selangor State Government is misleading and detrimental to all shareholders of Puncak.”
It said after analysing the offer, the actual proceeds payable to all water concession holders is far below the RM9.65 billion announced by the Selangor State Government.
“For instance, in the case of Puncak, the amount offered to Puncak for its equity stakes in PNSB and SYABAS is only RM1.555 billion and not RM5.594 billion as informed by the Selangor State Government.”
Gamuda Bhd said its board of directors today informed KDEB that the company is unable to consider the offer by the Selangor government’s investment company to take over its stake in Splash Holdings Bhd.
Among the reasons given are:
(1) a key component in the earlier offer letter dated 20 February 2013 was removed and this has resulted in an approximately 90% reduction in the offer consideration for SPLASH Holdings as compared to the earlier offer;
(2) the valuation methodology of using a return on Splash Equity of 12% per annum is not fair as it does not take into account the remaining tenure of SPLASH’s concession.
Bina Goodyear Bhd announced that the company has entered into a business acquisition agreement with ACD in relation to the proposed acquisition of construction projects worth RM10 million.
“The proposed acquisition of construction projects (by Bina Goodyear) will form part of the company’s plan to regularise its condition of being a Practice Note 17 (PN17) company,” said Bina Goodyear.
Help International Bhd and related company Selangor Properties Bhd said their respective shares will be suspended from trading tomorrow (Dec 5), pending a material announcement.
If the announcement is disclosed tomorrow, these two stocks will attract trading interest.
Caely Holdings Bhd (CHB) has bagged two construction projects worth RM97.25 million from Koperasi Peserta-Perserta Felcra Malaysia Bhd today.
In a filing with the exchange today, Caely said the two contracts involve designing and constructing housing projects in Perak. The first contract is worth RM69.04 million and the second RM28.21 million.
The group said that the contracts will be completed within 24 months from the date of contract.
“The contracts are expected to contribute positively to CHB’s future earnings,” the group said.