Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Wednesday, 10 April 2013 19:49
KUALA LUMPUR (April 10): Based on news flow and corporate announcements, the stocks that may lure trading interest tomorrow (April 11) could include WMW, TH PLANTATION []s, OSK Holdings, LBS and Kek Seng (M).
UMW HOLDINGS BHD [] has entered into a contract with Petronas Carigali Sdn Bhd, through its wholly-owned subsidiary UMW Standard Drilling Sdn Bhd, for the provision of UMW’s jack-up drilling rig NAGA 4.
The contract, valued at US$157.68 million (about RM500 million), is to perform the service for Petronas Carigali’s domestic operations within the Malaysian waters.
The contract, for three years, commences from the date NAGA 4 arrives at the mobilisation site. It comes with an additional two year option for renewal.
“The contract is expected to contribute positively to the earnings and net assets of UMW for the financial year ending 31st December 2013 and beyond,” said UMW.
NAGA 4 is an offshore self-elevating drilling unit, with a water depth and drilling depth of 400 feet and 30,000 feet respectively.
TH PLANTATIONS BHD [] (THP) is proposing a bonus issue of up to 149.73 million bonus shares, on the basis of one bonus share for every five existing THP shares held on an entitlement date to be determined later.
The company, in a filing with Bursa Malaysia, said this is to reward shareholders.
There will be an immediate dilution on the earnings per share of the group as a result of the increase in the number of THP shares, if its earnings stay unchanged.
OSK HOLDINGS BHD [] will distribute higher dividend to its shareholders for its financial year to end-2013, compared to last year's pay-out of 10%, after its merger and acquisition exercise with RHB CAPITAL BHD [].
"I think we will be able to pay more in dividend this year as previously RHB Cap paid a good dividend of about 35% of its net profit. Based on that, we will be able to get a certain amount of money to pay dividend to our shareholders," said managing director/CEO Tan Sri Ong Leong Huat today.
He told a press conference after the group’s AGM that the group also expects to double its operating profit from RM15 million recorded for its financial year ended December 31, 2012 to RM30 million this year.
"We expect to double our operating profit to RM30 million this year, but this excludes the contribution from RHB Cap," said Ong.
LBS BINA GROUP BHD [] announced that the company and its indirect unit Dragon Hill (vendor) had signed an agreement today to sell their two PROPERTIES [] in China, and this would result in a proforma gain of RM240 million for LBS Bina Group.
In addition, the sale will also see Dragon Hill owning 16.78% of the enlarged issued and paid-up capital of Zhuhai Holdings, a listed company on the Hong Kong Stock Exchange.
LBS said the company and Dragon Hill had today entered into a conditional agreement with Zhuhai Holdings and Jiuzhou Tourism Property for the disposal by Dragon Hill to Jiuzhou Tourism Property of two properties for a total of HK$1.65 billion (about RM657.69 million).
These two properties are Lamdeal Consolidated Development Ltd (for HK$1,559 million) and Lamdeal Golf & Country Club Ltd (for HK$90.50 million).
The aggregate sale consideration of HK$1.65 billion shall be satisfied via a combination of cash amounting to HK$1,350 million and shares in Zhuhai Holdings.
The property firm said the two property disposals enable LBS Group to unlock the value of its investments.
“The proposed disposal is expected to record estimated total proforma gain on disposal of approximately RM240.39 million for LBS Group,” it said.
The proposed disposal will also enable the group to raise cash of HK$1,350.00 million (RM538.11 million) and receive 225,563,909 shares in a listed firm.
The potential earnings arising from the proposed development are expected to contribute positively to the future earnings of LBS Group, the company said.
Zhuhai Holdings is involved in investment and property holding, management of holiday resort, theme park and amusement park and provision of port facilities.
Kek Seng (M) Bhd said KSD Enterprises Ltd, an indirect 50% subsidiary, has entered into a settlement agreement with Unit Park Airport Inc. (UPA) in respect of a legal suit initiated by UPA against KSD in the Ontario Superior Court.
Under the terms of the settlement pact, KSD will pay to UPA the sum of C$1.57 million (about RM4.7 million), plus an additional C$204,100 within 21 days from 5 April 2013 -- the date of the settlement agreement.
But the settlement and the sum of C$1,570,000 are not expected to have any material impact on the financial position and business operations of the group, Kek Seng said.