Will MISC stage a rebound tomorrow????
or Another Sell down????
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Monday, 22 April 2013 19:47
KUALA LUMPUR (April 22): Based on today’s news and exchange filings, the stocks that may generate interest on Tuesday (April 23) include Affin, Destini, BHIC, UEM, MAS, MISC and PLANTATION []s.
AFFIN HOLDINGS BHD []’s chairman Tan Sri Mohd Zahidi Zainudin said the financial group is optimistic of winning the bid to acquire the investment banking unit of HwangDBS (M) Bhd over rival AMMB HOLDINGS BHD [].
“With the negotiations and discussion, we hope that Affin will be able to be the frontrunner in the bidding,
“The chances of winning are 50:50, but we are positive in whatever we’re doing,” Zahidi told reporters after the group’s AGM today.
Destini Bhd will be lifted from its Practice Note 17 (PN17) status tomorrow (April 23).
Destini, which offers maintenance, repair and overhaul services for the aviation and maritime sectors, said Bursa Malaysia has approved the company's application for an upliftment from its PN17 status.
Destini, which became PN17 entity in May 2008, has since undertaken a regularisation scheme to rejuvenate its financials.
The scheme, which included a capital reduction and rights issue, was completed in September 2012.
BOUSTEAD HEAVY INDUSTRIES CORP []oration Bhd (BHIC) announced that its unit, Contraves Advanced Devices Sdn Bhd (CAD), has been awarded two contracts worth a total of RM515 million to supply ships and vessels to the government.
The two awards came from Boustead Naval Shipyard Sdn Bhd (BNS), an associate company of BHIC and a unit of BOUSTEAD HOLDINGS BHD [], in relation to the supply of patrol vessels/combat ships to the government.
While the first contract fetches a sum of RM287.02 million, the second brings in RM227.97 million. These contracts will be implemented over 10 years from today.
“The awarded works are expected to have a positive impact on the earnings of the company for the financial year ending 31 December 2013 and subsequent financial years,” BHIC said.
UEM LAND HOLDINGS BHD []’s (ULHB)’s wholly owned units UEM Land Bhd and Bandar Nusajaya Development Sdn Bhd have entered into a sale and purchase agreement with Southern Marina Development Sdn Bhd for the disposal of 12.5 acres of land for RM182 million.
Southern Marina is a 70:30 joint venture company between the Kuok Brothers Group and Khazanah Nasional Bhd.
The disposal of the land, located in Puteri Harbour, Nusajaya, is expected to help accelerate development momentum in Puteri Harbour and create commercial activities in the township.
The disposal is estimated to bring in RM108 million in gross profits. “The proceeds from the proposed disposal will be utilised to meet the ULHB Group’s working capital requirements,” said the group.
Malaysian Airline Systems Bhd (MAS) has made a settlement of RM8.36 million with the New Zealand Commerce Commission (NZCC) to settle an air freight litigation on the price fixing of surcharges.
The national airline carrier said the High Court of New Zealand has ordered that MASkargo to pay a penalty of NZ$2.6 million in four instalments over 18 months. MASkargo will also contribute NZ$259,079 to the NZCC’s court costs and NZ$400,000 to the NZCC investigation costs.
The payment will be guaranteed by MAS.
The carrier was served with a statement of claim by the NZCC on December 15, 2008.
MISC BHD [] may stage a rebound tomorrow after its massive sell-down today on the failed takeover of the company by Petronas, if investors see value in the stock
HwangDBS Vickers Research said today the failed takeover of MISC Bhd by Petroliam Nasional Bhd (Petronas) shows that there is greater value to be unlocked in the shipping corporation.
The research house said: “This episode tells us that Petronas believes there is greater value in MISC, dissenting minorities look beyond the current weakness in petroleum and chemical tanker rates and they believe there is greater value from the offer price.”
HwangDBS noted that Petronas’s final offer price of RM5.50 was below the independent adviser’s fair value range of RM5.69 to RM6.10 and HwangDBS’s target price of RM6.60.
MISC shares dived by 73 sen or 13.77% to RM4.57 today.
Plantation groups could be affected by a report by Alliance Research, which said it expects another volatile year for the sector this year with crude palm oil (CPO) prices averaging at RM2,600/metric tonne.
The research house said a healthy production outlook, coupled with trailing exports, is likely to keep CPO prices subdued in the interim.
“Continued competition from Indonesian exports will also be negative for Malaysian exports,” said Alliance Research.
It was reported earlier that both Malaysia and Indonesia would be on a level playing field next year with regards to exports to the European Union (EU).
“While Malaysia is being dropped from the EU Generalised Scheme of Preferences (GSP), it was reported that Indonesia would also lose its privileges from 2014-2016,” said the research house.