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Reports Malaysia

Malaysia stock market and companies daily report (December 31, 2013)

December 31, 2013, Tuesday, 09:12 GMT | 04:12 EST | 13:42 IST | 16:12 SGT
Contributed by Shares Investment

Boustead Proposes Listing Of Plantation Arm

- Boustead Holdings proposed to spin-off its subsidiary, Boustead Plantations (BP), on the Main Market of Bursa Malaysia with an initial public offering of up to 656 million shares, comprising a public issue of 580 million new BP shares. The listing time frame and issue price were not disclosed at this point in time.

- BP will own, co-own or lease a total of 40 oil palm plantations in Malaysia, as well as own and operate 20 palm oil mills, upon completion of the privatisation of Al-Hadharah Boustead REIT. Notably, Boustead REIT’s unitholders will get a total of 174.6 million shares on the basis of three BP shares for every five Boustead REIT units.

- The listing of BP will enable its parent to unlock the value of its investment in BP and raise flexibility for BP to raise funds as well as for Boustead Holdings to have more financial flexibility for earnings accretive acquisitions.

Significance: The net proceeds raised from the offer for sale by Boustead Holdings will be utilised for the repayment of existing debts and expenses while the net proceeds from the public issue of new BP shares will accrue entirely to BP for acquisition of plantation lands, replanting and capital expenditure.

Lafarge Invests RM3m To Build Fifth CDL

- Lafarge Malaysia, a subsidiary of France’s cement giant Lafarge, announced that it would invest RM3 million in setting up a construction development laboratory (CDL) in Petaling Jaya, the world’s fifth such facility for the group.

- Upon completion of the CDL in 1H14, Lafarge Malaysia will bring in the research and innovation developed by its parent’s global research centre in Lyon, France, to provide the local construction industry with better and tailored solutions to meet domestic needs more efficiently.

- Lafarge Malaysia’s president and chief executive officer, Bradley Mulroney, anticipates between 4 percent and 5 percent market growth per annum and aims to maintain its capacity to meet projects such as KLIA2 and the Klang Valley mass rapid transit.

Significance: Notably last month, Lafarge inked a memorandum of understanding with CIDB Holdings, a wholly-owned subsidiary of the Construction Industry Development Board Malaysia, to promote the use of cement and concrete solutions. The agreement aims to elevate construction standards and contribute to sustainable construction locally.

Selangor Properties Reports 38.1% Jump In FY13 Profit

- Selangor Properties’ net profit surged 78.1 percent to RM34.3 million for the fourth quarter ended 31 October 2013 from RM19.3 million a year ago on the back of a 6.8 percent jump in revenue to RM59.7 million.

- For the full-year period, net profit rose 38.1 percent to RM95.3 million from RM69 million, while revenue generated was up 6.7 percent to RM239.5 million versus FY12’s RM224.5 million.

- Separately, Selangor Properties has undertaken a revaluation exercise for all its investment properties that will see the group gain RM45.9 million, resulting in an increase of RM0.109 in the net asset per share of the company.

Significance: Selangor Properties expects its operations in Malaysia and Australia to remain positive next year. However, profitability will be subjected to currency fluctuations for its overseas investment.