Reports » Malaysia

Malaysia stock market and companies daily report (February 13, 2013)

Contributed by Shares Investment

SP Setia Raises RM942.8m From New Share Placement
SP Setia raised RM942.86 million from a private placement of 15 percent of the company’s enlarged issued and paid-up share capital. The placement was subscribed by more than 70 investors in Malaysia as well as Asian, UK and US funds. This has provided the company with a strong base of anchor shareholders whilst the larger shareholding spread will improve the trading liquidity of its shares. “This strong vote of confidence from both local & foreign institutional investors provides SP Setia with significant firepower to execute the many projects we have both in Malaysia and overseas.” said SP Setia president and CEO Tan Sri Liew Kee Sin in a statement issued last Friday. The placement funds raised will be used to fund its many on-going projects in Malaysia as well as its investments overseas. These include its 40 percent stake in the redevelopment of the Battersea Power Station in London, joint-venture start-up capital and initial development cost for the G2G Qinzhou Industrial Park in China and other developments in Australia and Singapore.
Significance: The issue price for the new shares was fixed at RM2.94 per share, representing a discount of 6.87 percent to the 5-day volume weighted average market price of the company’s shares up to and including 6 February, 2013 of RM3.16 and a discount of 5.16 percent to the closing price on 6 February, 2013 of RM3.10.

Daibiochi To Spend RM45m On New Plant
Daibochi Plastic and Packaging Industry (Daibochi) intends to spend RM45 million in capital expenditure (capex) to expand its manufacturing facilities by building a new manufacturing plant in Jasin, Melaka. “The new manufacturing plant will enable us to expand our in-house film-making and metallising operations to meet current and future needs of our growing clientele. We will commence the construction of the new factory by the 2nd quarter of 2013.” Said Thomas Lim, Daibochi’s managing director in a statement last Friday. The capex of RM45 million will be invested over three phases. Phase 1 which is targeted for completion in 2013, will cost RM25 million for the purchase of land, construction of new facilities and the acquisition of machinery. Phases 2 and 3 which involves a further investment of RM20 million is expected to be completed over a 3-year period from 2014 to 2016.
Significance: With this new development, the company has positioned itself to achieve long-term and sustainable growth. Furthermore, the investment will be funded via a combination of internally-generated funds and bank borrowings.

MMHE JV Secures Contract For TLP Malikai Deepwater Project
Malaysia Marine and Heavy Engineering Holdings’ (MMHE) joint venture (JV) entity has been awarded the tension leg platform (TLP) Malikai deepwater project by Sabah Shell Petroleum at an estimated US$775 million or RM2.4 billion. The 50:50 unincorporated joint venture, to be known as MMHE (Malikai) JV will be jointly owned by MMHE and Technip Geoproduction (TPGM). Through the deal, the JV entity will undertake the engineering, procurement, construction and commissioning of the Malikai topside and hull. MMHE will lead the project in the construction, fabrication and commissioning activities.  TPGM’s affiliate, on the other hand will inject technical input which has extensive experience in the construction and commissioning of floating offshore facilities. MMHE managing director and chief executive officer Dominique de Soras said “The construction, fabrication, onshore topside hull integration and commissioning of the TLP Malikai deepwater structure will be conducted using the improved facilities at MMHE West Yard in Pasir Gudang, where the skid track and bulkhead facilities can accommodate more than 40,000 tonnes.”
Significance: The TLP design is the first of such floating solutions to be deployed in Malaysia, and the third floating platform for deepwater fields in Malaysia, the company said. The TLP Malikai Deepwater Project is expected to be completed by the third quarter of the year 2015 and is expected to contribute positively towards MMHE’s future earnings.