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Reports Malaysia

Malaysia stock market and companies daily report (July 03, 2014)

July 3, 2014, Thursday, 04:36 GMT | 23:36 EST | 08:06 IST | 10:36 SGT
Contributed by Shares Investment

GBH Forays Into Oil And Gas

- Through a reverse takeover, Goh Ban Huat (GBH) has proposed to acquire Dynac for RM632 million.

- Out of the purchase price, RM210 million will be satisfied in cash while the balance will be fulfilled via an issuance of new GBH shares at RM2 apiece.

- Simultaneously, GBH has agreed to buy a 35 percent stake in Globalmariner Offshore Services (GMOS), an international oil and gas service company specialising in floating production storage and offloading solutions (FPSO), for RM38 million in cash.

Significance: In addition, GMOS is a Petronas licensed holder, which is expected to have competitive advantages in bidding for any future FPSO tenders.

Eco World To Develop RM3.5b Township

- Eco World Development Group has bought 492.7 acres of land in Beranang, Ulu Langat, Selangor, for RM225.3 million.

- The land will be developed into a mixed residential and commercial township, with a focus on affordable housing, valued at RM3.5 billion.

- Additionally, Eco World is also acquiring the development rights to develop Eco Majestic, a 1,073.1 acres township situated within close proximity of the land in Beranang.

Significance: With two large land parcels close to each other, Eco World would be better positioned to reach out to a broader range of customers by offering products suitable for the mass, upgrader and luxury homes markets.

Axiata To Divest Non-Core Samart i-Mobile

- Axiata Group has moved to sell its 24 percent-interest in Samart i-Mobile Public Company to Samart Corporation Public Company for US$88.6 million.

- The sale of Samart i-Mobile reflects Axiata’s push to divest its non-core assets and focus on its core business.

- The divestment follows Axiata’s disposals of Samart Corporation and its small regional operations in Iran in 2010.

Significance: The divestment, not expected to have any material financial impact on Axiata’s FY14 performance, is expected to be completed by 1 August.