Written by Joseph Chin of theedgemalaysia.com
Tuesday, 08 March 2011 04:54
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KUALA LUMPUR: Companies to watch on Wednesday, March 8 with fresh corporate developments include Berjaya Food Bhd, DRB-HICOM BHD [], SUNWAY HOLDINGS BHD [], GREEN PACKET BHD [] and Multi Sports Holdings Ltd.
Berjaya Food will be listed on the Main Board. Its subsidiary Berjaya Roasters develops and operates the Kenny Rogers Roasters chain of restaurants in Malaysia.
OSK Research values BFood at 57 sen a share, based on 7.5 times FY11 earnings per share. Its IPO price is 51 sen. BFood registered five-year sales and net profit CAGR of 22% and 46.1% from FY2006-FY2010 respectively, driven mainly by new outlets and higher selling prices, said the research house.
DRB-Hicom Bhd’s unit DRB-Hicom Defence Technologies Sdn Bhd has accepted the letter of award from the federal government for a RM7.55 billion contract to supply armoured wheeled vehicles (AWV).
The contract is to design and supply 257 units of the 8x8 AWV, which will be in eight variants. The contract valued at RM7.55 billion is for a period of seven years commencing from 2011.
Sunway Holdings Bhd has secured a RM74.1 million contract from Malaysian Bio-XCell Sdn Bhd to build its central utilities plant at Biotechnological Park Bio-XCell, Nusajaya.
Its unit Sunway CONSTRUCTION [] Sdn Bhd had accepted the letter of award for the contract and the proposed project is targeted to be completed by May 25, 2012.
The Edge FinancialDaily reports that while investors may have turned sceptical towards loss-making WiMAX player Packet One Networks Sdn Bhd (P1) (which is under Green Packet Bhd), its new strategic partner SK Telecom (SKT) believes there is much value in P1's wireless business as a launchpad for SKT's aspiration to expand regionally in Southeast Asia.
Also in The Edge FD, SEGI International Bhd (SEGi) group managing director Datuk Clement Hii Chii Kok has emerged as the second largest shareholder of the company after he acquired 30.3 million shares on Monday, raising his stake to 20.61%.
The recent statement by Prime Minister Datuk Seri Najib Razak that foreign strategic shareholders in banks may be allowed to raise their interest in financial institutions has caused some excitement in the sector although there are many unanswered questions with regard to the policy and regulatory implications.
Multi Sports Holdings Ltd plans to sponsor a Taiwan depository receipt programme (TDR) that would represent up to 67.50 million new shares of 5 US cents each or 15% of the current paid-up share capital.
It would issue up to 67.50 million new shares at an issue price to be determined later, which would be the underlying shares for the programme. The TDR will be offered to investors in Taiwan, it said. The ratio would be two TDR for every one underlying share.
The issue size is up to 135 million units of TDRs represented by up to 67.5 million underlying shares.