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Reports Malaysia

Malaysia stock market and companies daily report (July 24, 2014)

July 24, 2014, Thursday, 04:34 GMT | 00:34 EST | 09:04 IST | 11:34 SGT
Contributed by Shares Investment

BFood To Buy Remaining Stake In BStarbucks

- Berjaya Food plans to acquire the remaining 50 percent stake in Berjaya Starbucks Coffee Company for RM279.5 million.

- With the acquisition, Berjaya Food will be able to consolidate the results of Berjaya Starbucks, enlarging its revenue and earnings base and to further capitalise on Berjaya Starbucks’s growth potential.

- This move will further enable Berjaya food to explore potential business opportunities with Starbucks Coffee International particularly in the fast moving consumer goods sector and channel development, food service and/or distribution rights.

Significance: With this acquisition, Berjaya Food’s 100 percent equity interest in Berjaya Starbucks would further propel Berjaya Food profitability.

CIMB To Buy Thai Asset Management Firm

- CIMB Group Holdings’ 60 percent-owned subsidiary, CIMB-Principal Asset Management Co (CPAM), has proposed to Thai-based Finansa Asset Management (FAM) for THB225 million (RM22 million).

- Established in 1969, FAM manages mutual funds, provident funds and private funds.

- As of 30 June, FAM has assets under management (AUM) of about THB36.3 billion (RM3.6 billion).

Significance: The acquisition will increase the combined AUM of CPAM and FAM to RM7 billion while allowing both parties to leverage of each other to service their retail and institutional clients respectively.

Westports 2Q14 Profit Up 2.4% At RM122m

- Robust growth in the container segment lifted Westports Holdings’ 2Q14 top line 1.9 percent to RM409 million.

- For the three months ended 30 June, total container throughput increased by 14 percent to 2.1 million twenty-foot equivalent units (TEU).

- Consequently, net profit for the quarter rose 2.4 percent to RM122.5 million, from RM119.6 million a year earlier.

Significance: Moving forward, Westports expects to receive the remaining three units of ship-to-shore cranes, out of a total of seven units, for container terminal seven (CT7) by 3Q14. When CT7 is fully operational, the firm’s handling capacity is expected to increase from 9.5 million TEUs to 11 million TEUs per annum.