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Reports Malaysia

Malaysia stock market and companies daily report (July 09, 2014)

July 9, 2014, Wednesday, 04:46 GMT | 23:46 EST | 08:16 IST | 10:46 SGT
Contributed by Shares Investment

Efficient Buys Negeri Sembilan Land For RM7m

- Efficient Storage Solutions (Techpark), a subsidiary of Efficient E-Solutions, has agreed to purchase a 23,301 square metre freehold land located in the state of Negeri Sembilan for RM6.5 million.

- The lands are slated for the development of facilities used for the storage of physical documents, digitalising process of documents and storage of digital documents related to Efficient Storage Solutions’ business.

- Efficient E-Solutions will carry out the acquisition in cash.

Significance: The proposed purchase is expected to be completed by 2H14. No independent valuation was carried out.

Fajarbaru Secures RM49m Kuantan Port City Contract

- Fajarbaru Builder Group has been awarded a letter of acceptance from East Coast Economic Region Development Council for works on the proposed construction and completion of Kuantan Port City Port Link Road in Pahang, Malaysia, worth RM49.1 million.

- The contract involves works on the elevated diamond interchange to Malaysia-China Kuantan Industrial Park and upgrading of Sg Ular Interchange.

- Commencing on 21 July, 2014, the construction contract duration is expected to last 78 weeks.

Significance: The contract is expected to contribute positively to Fajarbaru’s financial performance in FY15 and FY16.

Pelikan To Raise RM491m From Stationery Unit Sale

- In a reorganisation exercise, Pelikan International Corporation is looking to inject its stationery business, including the manufacturing and distribution of writing instruments, into its subsidiary, Germany-listed Herlitz Aktiengesellschaft, in exchange for shares in the latter.

- Following which, Pelikan will seek to raise RM491.3 million through a private placement and sale of shares in Herlitz.

- Out of the consideration sum, RM200 million will be allocated to new products, build sales and distribution channels as well as expand into new markets while RM150 million will be used to repay its debts.

Significance: Pelikan intends to streamline its stationery business into one listed subgroup, which is Herlitz, with the remaining business to be maintained under Pelikan and Pelikan Holding.