Stocks To Watch Century Logistics, FGV, Green Packet, Handal, SYF, Golsta, B.Media


Business & Markets 2014
Written by Ho Wah Foon of theedgemalaysia.com   
Thursday, 13 March 2014 19:50

KUALA LUMPUR (March 13): Based on corporate announcements today, the companies that may become trading focus include the following:

Century Logistics Holdings Bhd says it is exploring a potential corporate exercise with the Felda group.

The company said this in response to an article entitled “Felda group eyeing Century Logistics?” which appeared in The Edge Financial Daily on 13 March 2014.

“After due enquiry…we wish to inform that the company is exploring a potential corporate exercise with the Felda group though nothing conclusive has been agreed upon,” it said.

In a separate announcement, Felda Global Ventures Holdings Bhd (FGV) said it is “always exploring potential mergers and acquisitions to support its growth strategy.”

“The company is evaluating several proposals to enhance its value chain. With regard to Century Logistics Holdings Berhad, nothing conclusive has been agreed and/or decided upon.”

The Edge Financial Daily today reported that talks between the plantation giant and Century’s largest shareholder Datuk Richard Phua Sin Mo, who has a 26.4% equity stake in Century Logistics, have been ongoing for some time now.

As at yesterday’s close of RM2.65, Phua’s 26.4% stake or 30.8 million shares had a market value of RM80.3 million.

Green Packet Bhd and Handal Resources Bhd have attracted investment from OSK Equity Holdings Sdn Bhd, which has become a major shareholder in both companies.

Information and communication technology-based Green Packet told the exchange today that OSK Equity had acquired 108.8 million shares for an indirect 15.86% stake in Green Packet on December 24, 2013.

"The company (Green Packet) received this notification on 12 March 2014," Green Packet said.

According to Green Packet, OSK Equity owns the stake via OSK Ventures International Bhd.

Meanwhile, crane builder Handal said OSK Equity had purchased nine million shares for an indirect 5.64% stake in Handal.

Handal said in a statement to the bourse that OSK Equity had also acquired the stake on December 24, 2013 via OSK Capital Partners Sdn Bhd.

OSK Capital is a unit under OSK Ventures. "The notice of interest of substantial shareholder by OSK Equity Holdings Sdn Bhd was received on 13 March 2014."

SYF Resources Bhd’s share price closed at 64.5 sen per unit after an announcement of a general offer (GO) by its director, Ng Ah Chai, at 65 sen a share.

In morning trades, SYF shares were traded at 69.5 sen, up 6.5 sen or 10.3% from its opening price of 63 sen. But the share price began to fall from 69.5 sen after the announcement to end at 64.5 sen.

Company director Ng Ah Chai is offering 65 sen per share in a general offer exercise for the company.

Ng, who now holds 137.0 million shares or 50.27% stake in the company after acquiring Tan Sri Clement Hii Chii Kok’s 20% stake today, is offering to buy the remaining shares in the firm not already owned by him.

According to a series of announcements by the company, Tan Sri Clement Hii Chii Kok’s sold his 20% stake (54.5 million shares) in the company today. Hii began accumulating shares in SYF two years ago.

Ng had acquired 56.5 million shares over the past two days at a total cost of RM338.9 million, where most of the shares were acquired through direct dealings, according to SYF’s filings with Bursa Malaysia.

Meanwhile, Golsta Synergy Bhd – a company in which Clement Hii bought into recently -- fell 13 sen or 3.6% to RM3.53. Hii has launched a general offer for the company at RM2.10 per share.

Berjaya Media Bhd, the publisher of the Sun newspaper, reported a lower pretax profit of RM1.46 million for the third quarter to end-January 2014, compared to a pretax loss of RM6.19 a year ago.

The group reported a revenue of RM16.17 million as compared to the revenue of RM14.41 million in the preceding year's corresponding quarter.

The increase in revenue for the quarter under review was mainly due to higher advertising income recorded by the Sun Media Corporation Sdn Bhd and this had resulted in higher profit from operations for the quarter.

The group said it registered a pre-tax profit mainly due to improved advertising income whilst the loss incurred in the preceding year's corresponding quarter was mainly due to the impairment of publishing rights amounting to RM1.0 million and the impairment loss of quoted investments of RM5.67 million.

“The directors are of the view that the group's business for the remaining quarter of the financial year ending 30 April 2014 will continue to be challenging," it said.