Business & Markets 2013
Written by Shalini Kumar of theedgemalaysia.com
Tuesday, 12 March 2013 19:17
KUALA LUMPUR (Mar 12): Based on announcements to Bursa Malaysia and news flow today, companies that may attract investor interest on Wednesday (March 13) could include Emas Kiara, Benalec Holdings, oil & gas stocks, property companies and Magni-Tech.
EMAS KIARA INDUSTRIES BHD [] has received a takeover offer from its founder and deputy executive chairman Wong Kong Foo to acquire the remaining shares not owned by him in the firm.
The geotechnical-engineering services provider and property developer said Wong, who already owns 37.29% in EKIB, plans to acquire the remaining 35.94 million shares or 40.27% in the company at 45 sen a share.
The last traded price of the stock, which was suspended from trading today, was 36.5 sen.
"The board of directors of the company does not intend to seek an alternative offer," EKIB said.
Upon completion of the takeover exercise, Wong and friendly parties will see their stake increase to 89%. They however, plan to maintain the listing status of the firm.
Benalec Holdings Bhd has entered into a binding term sheet with The State Secretary, Johor and 1MY Strategic Oil Terminal Sdn Bhd to acquire a 1,000 acre land in Tanjung Piai for a crude oil and petroleum storage facility.
The group said the land would be for the purpose of constructing and operating a crude oil and petroleum storage facility together with a private jetty.
“1MY Strategic Oil Terminal intends to acquire the land for the purposes of CONSTRUCTION [], commission, operation and maintenance of an oil and petroleum storage facility,” it added.
The binding term sheet is expected to be finalised within three months from today.
“The project is to be financed by way of internally generated funds and bank borrowings,” it said, adding that there term sheet will have no impact on its current year.
Oil & gas companies, along with property companies, could see a rise in interest in their stocks following a RM18 billion strategic partnership between Malaysia and Abu Dhabi, as well as a commitment by Abu Dhabi to develop a RM21 billion petroleum reserve facility in Johor.
“The RM18 billion partnership will focus in investments in important high-impact projects vital to the long term-economic and social growth of Malaysia,” said a statement from state-owned 1Malaysia Development Bhd.
Abu Dhabi “also agreed” to develop a RM21 billion strategic petroleum reserve facility in Johor, with a capacity to store 60 million barrels of crude oil and petroleum storage facility for the exclusive use of Abu Dhabi.
The statement added that Abu Dhabi “is moving ahead” to provide the required capital for the multi-billion ringgit Tun Razak Exchange (TRX) development, making it the first major multinational anchor investor in TRX.
TRX, launched in mid-2012, is estimated to generate a gross development value of RM26 billion and attract 250 of the world’s leading companies, creating 40,000 new job opportunities for knowledge workers.
MAGNI-TECH INDUSTRIES BHD [] posted a net profit of RM9.9 million for the third quarter ended January 31, 2013, up by 24% year on year due to higher revenue and lower material cost.
Magni-Tech’s quarter revenue increased to RM162.2 million, up from RM133.9 million in similar quarter in the previous financial year.
“This is due to increase in sales orders received from both garment and packaging businesses by 24.3% and 7.5% respectively,” said the company.
The board has declared an interim dividend of 5 sen per share less 25% tax in respect of the financial year ending 30 April 2013 and payable on 26 April 2013. The company is positive on its fourth quarter.