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Reports Malaysia

Malaysia stock market and companies daily report (June 20, 2014)

June 20, 2014, Friday, 06:05 GMT | 01:05 EST | 09:35 IST | 12:05 SGT
Contributed by Shares Investment

Gamuda Ups Stake For Kesas

- Following a revised offer price of RM3.08 per share, up from RM2.973 apiece, Permodalan Nasional has accepted Gamuda’s RM290 million cash offer in exchange for its 20 percent-stake in Kesas Holdings.

- Under a concession agreement, which is valid until 18 August 2023, Kesas holds the toll concessionaire for the 35 kilometre Shah Alam Expressway.

- The purchase will increase Gamuda’s interest in the highway operator to 70 percent with the Selangor State Development Corporation holding the remaining 30 percent.

Significance: Kesas’ FY13 revenue and net profit climbed 37.3 percent and 80.9 percent to RM332.9 million and RM161 million respectively.

SP Setia Concludes Bangsar Land Deal

- SP Setia’s subsidiary, Setia Federal Hill (SFH), has satisfied all the conditions set out in a privatisation agreement between the government and SP Setia which will see the latter secure a 21.2 hectare land in Jalan Bangsar.

- In exchange for the land, SFH will construct an integrated health and research institute in Setia Alam, Selangor, with a contract value of RM845 million.

- In addition, SP Setia will fork over RM217.1 million to the government as minimum guaranteed profit from the planned mixed development at the Bangsar land.

Significance: Within the mixed development, SP Septia intends to develop luxury residential apartments and integrated commercial products.

UMW Lays Out RM2.7b Capex Plan

- UMW Holdings unveiled a RM2.7 billion capital expenditure (capex) strategy for the year, up 80 percent from 2013’s RM1.5 billion.

- The firm’s oil and gas (O&G) unit will be allocated RM1.9 billion, automotive segment will receive RM400 million while its equipment division will get RM250 million.

- Separately, UMW’s 38 percent-owned Perusahaan Otomobil Kedua will launch an energy efficient vehicle in 2H14 to help the latter maintain its lead in the domestic car market.

Significance: While UMW’s O&G unit, which contributed 15 percent of the firm’s FY13 net profit, may see a slight increase in its contribution for FY14, the automotive division, which brought in 80 percent of last year’s bottom line, is expected to continue contributing the bulk of its earnings.