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Reports Malaysia

Malaysia stock market and companies daily report (September 04, 2014)

September 4, 2014, Thursday, 04:37 GMT | 23:37 EST | 08:07 IST | 10:37 SGT
Contributed by Shares Investment

Dayang Proposes Private Placement Of 83m Shares

- Dayang Enterprise Holdings has proposed to undertake a private placement of up to 10 percent of the company’s outstanding number of shares.

- As of 26 August, Dayang’s issued and paid-up share capital comprises of 825 million shares worth RM412.5 million. Consequently, the placement entails the issuance of up to 82.5 million new ordinary shares of RM0.50 each to third party investors to be identified and at an issue price to be determined later.

- The proposed placement is expected to raise estimated gross proceeds of up to RM304.4 million based on an indicative issue price pf RM3.69 per share, which will be mainly utilised for working capital and/or potential investment projects.

Significance: The proposed placement will enable Dayang to raise funds without incurring interest cost compared to bank borrowings, and represents the most appropriate avenue of raising funds given the quick timeframe for completion of the exercise.

Former CEO of Encorp Emerges As Furniweb’s Largest Shareholder

- Yeoh Soo Ann, former chief executive officer of Encorp has purchased a 17.4 percent stake of Furniweb Industrial Products on 28 August via a direct deal. On the same day, Furniweb’s founder Cheah Eng Chuan and substantial shareholder Pacific Vintage sold its 9.7 percent and 4.7 percent stake in the firm.

- Furniweb’s business involves the production of industrial products such as webbing yarn and furniture components as well as rubber strips and fabric for an array of industries. In April, it obtained shareholders’ approval to venture into property development, in which Yeoh has experience in.

- Furniweb posted a net loss of RM769,000 on sales of RM20.5 million in 2Q14.

Significance: Mercury Securities view its venture into property developments to diversify from its business segments as a positive move. The move into property development is not as risky as first thought.

Ivory Partners Ikano In RM8b Project

- Ivory Properties Group 49 percent-owned Aspen Vision Land (AVL) has sealed a deal with Penang Development Corporation to acquire a 245-acre land in Bandar Cassia, Batu Kawan, where most of the land is earmarked for mixed development.

- AVL has also partnered with Ikano to jointly develop the site into a mixed residential and commercial development project.

- The flagship project comprises a regional integrated shopping centre, which will house the first IKEA store in Northern Malaysia, managed by Ikano. A mixed development of residences, offices, medical facilities, international schools, retail outlets and an integrated central transportation hub is also included.

Significance: The project has an estimated gross development value of RM8 billion and is scheduled for completion over a 10-year period from its commencement date.