Reports » Malaysia

Malaysia stock market and companies daily report (February 08, 2013)

Contributed by Shares Investment

MBF Shares Rise To Offer Price Of RM1.50
MBF Holdings shares edged up to its takeover price of RM1.50 in active trade after resumed trading in the morning, yesterday. Prior to the suspension, the counter had last Tuesday gained 23 sen and closed at RM1.48 with some 7.3 million shares changing hands. In a statement to the local burse, MBF said its chief executive officer (CEO) Tan Sri Dr Ninian Mogan Lourdenadin via his private arms, Tor Private, Nadin Holdings, Impact Action, and Market Share Investments; had made a takeover offer for the remaining shares of the diversified entity at RM1.50 a share. In addition, he will purchase the outstanding redeemable convertible secured loan stocks issued by MBF’s wholly owned unit Wellink Investments at RM4.64 each. The company disposed of its entire stake in MBF Cards (M) to AMMB Holdings for RM623.4 million, last December. It recorded a cumulative net loss of RM437,000 for the nine months ended 30 September 2012, against a net profit of RM91.87 million a year ago. Revenue rose 16 percent to RM2.04 billion from RM1.76 billion, previously.
Significance: The CEO’s move will likely see MBF being delisted upon completion of the practice. “The board does not intend to seek an alternative person to make a takeover offer for the offer shares,” MBF said. No reason was provided for the undergoing exercise.

SP Setia In RM1.24b JV Deal
SP Setia’s wholly owned unit Rockbay Streams has entered into a joint venture deal with Cash Band (M) for a mixed development project on 194.65 acres of land in Gombak, Kuala Lumpur with an estimated gross development value (GDV) of RM1.24 billion. The development will comprise a mix of residential and commercial properties. “The land is strategically located in a prime location, which is about 20 kilometres from the Kuala Lumpur city centre, and is surrounded by lush greenery from the nearby natural tropical rainforests making it ideal for an eco-themed development,” said SP Setia in a statement. Under the agreement, SP Setia will develop the land as well as market and sell the commercial and residential units, with Cash Band as the landowner. The yet-unnamed project has a development period of six years from vacant possession of the land.
Significance: SP Setia expects the proposal to bring its proven expertise in eco-inspired townships to a new development corridor in the Klang Valley where it does not yet have a presence. It is expected to contribute positively to the earnings and cash flow of SP Setia in the future.

KUB Signs MOU For Sarawak Plantation Venture
KUB Malaysia plans to collaborate with Antero Capital to jointly develop an 8,000 hectares oil palm plantation tract in Sarawak, a move which will expand the former’s plantation territory in the state. In a statement to the exchange yesterday, KUB said its wholly owned subsidiary KUB Agro Holdings had entered into a memorandum of understanding (MOU) with Antero as a lead up to definitive agreements for the proposed venture within the Kanowit enclave in Sibu. “KUB Agro and Antero shall combine their resources and expertise to explore, apply and/or propose to the relevant authorities and develop the land into an oil palm plantation and such other viable projects as may be mutually agreed between the parties from time to time,” KUB said. According to the company, feasibility of establishing palm oil mills within the plantation area will be assessed by both firms.
Significance: It’s noted that the group via KUB Agro already owns two oil palm plantations within Kluang, Johor with a combined area of 2,660 hectares. The group also carries a 60 percent stake in KUB Sepadu which, in turn, owns 4,680 hectares of oil palm tracts in Mukah, Sarawak.