Stocks To Watch Furniweb Industrial, Al-‘Aqar Healthcare REIT, Ivory Properties, Favelle Favco, Dayang Enterprise


Business & Markets 2014
Written by Gho Chee Yuan of theedgemalaysia.com   
Wednesday, 03 September 2014 21:30

KUALA LUMPUR (Sept 03): Based on news flows and corporate results released today, some of the companies that may attract investor attention tomorrow (Sept 04) include the following: Furniweb Industrial Products Bhd, Al-‘Aqar Healthcare REIT, Ivory Properties Group Bhd, Favelle Favco Bhd and Dayang Enterprise Holdings Bhd.

Former group chief executive officer (CEO) of Encorp Bhd, Yeoh Soo Ann, has emerged as the biggest shareholder of Furniweb Industrial Products Bhd, after acquiring a 17.40% stake in the company.

In a filing with Bursa Malaysia, Furniweb said Yeoh has acquired 25.2 million ordinary shares of 50 sen each in the company, equivalent to a 17.40% equity stake, on Aug 29, 2014.

On the same day, Furniweb director Cheah Eng Chuan disposed 14 million shares or a 9.67% stake in the company, for 75 sen per share.

Cheah still holds some 7.9 million shares in Furniweb, after the disposal.

Al-‘Aqar Healthcare REIT's planned disposal of the Selesa Tower in Johor Bahru to Smartwheels Intelligence Sdn Bhd for RM112 million, has been cancelled.

Al-‘Aqar told Bursa Malaysia that it was because Smartwheels had failed to pay the remaining sum of the property price by last Friday (Aug 29), adding that it would refund the buyer’s earlier partial payments.

"Al-‘Aqar will refund the purchaser the sum of RM6.72 million (equivalent to six percent (6%) of the disposal consideration), and shall forfeit RM2.24 million [equivalent to two percent (2%) of the disposal consideration]," it said.

The REIT said the SPA termination would allow the group to start negotiations with other potential buyers.

Al-`Aqar had in February this year, signed the sale and purchase agreement with Smartwheels, for the sale of Selesa Tower. The property comprises a freehold land with a 27-storey hotel (Hotel Selesa) and a 31-storey office block (Metropolis Tower).

Ivory Properties Group Berhad (Ivory) has inked a purchase and development agreement (PDA) with Penang Development Corporation (PDC), and sealed a partnership with Ikano Pte Ltd (Ikano) in Penang.

The company said in a statement that it sealed the two deals via its 49%-owned Aspen Vision Land Sdn Bhd (AVLSB). 

"AVLSB also sealed a partnership with Ikano to jointly develop a state-of-the-art integrated regional shopping centre and anchored by an Ikea store," it said.

"With an estimated gross development value of RM8 bil, the entire development is scheduled for completion over a period of 10 years from its commencement date," Ivory added.

Favelle Favco Bhd (FFB) has received three purchase orders for heavy machinery equipment, worth RM119.9 million, from China Merchants Heavy Industry (Jiangsu) Co Ltd, Form 700 Pty Ltd and Shanghai Shipyard Co Ltd.

The orders involve the supply of offshore and tower cranes, which the company expects to deliver throughout 2015, a company statement said today.

The company expects the contracts to contribute positively to its earnings for the financial year ending Dec 31, 2014, and beyond.

Dayang Enterprise Holdings Bhd is seeking a private placement to raise up to RM304.43 million for additional working capital, and potential investment in projects which are synergistic with its existing business.

In a filing with Bursa Malaysia, the oil and gas service provider said it is proposing to issue up to 82.5 million new shares, equivalent to 10% of its current share base, to yet-to-be-identified third party investors.

“The proposed private placement provides an opportunity for Dayang to tap into the equity capital market for funds, and take advantage of the current robust demand from investors, to participate in the growth prospects of the O&G sector in Malaysia,” it said on the rationale for the share placement.

It will also enable Dayang to raise funds without incurring interest cost compared to bank borrowings, and represents the most appropriate avenue of raising funds, given the quick time frame for completion of the exercise, it added.

Dayang said it expects the private placement exercise to be completed within six months after the stock exchange approval.