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Reports » Malaysia

Malaysia stock market and companies daily report (September 17, 2012)

September 17, 2012, Monday, 06:28 GMT | 02:28 EST | 09:58 IST | 12:28 SGT
Contributed by Shares Investment

TSH Secures A Stake In PUPB
TSH Resources has secured a 20.2 percent stake in its takeover offer of Pontian United Plantations (PUPB), thus making it the largest shareholder and resulting in PUPB being an associate company of TSH. On June 26 this year, TSH and the Lee family proposed to buy the remaining 80.28 percent stake equivalent to 6.94 million shares, in PUPB for RM624 million or at RM 90 per share. The consideration of the offer was to be fulfilled by RM45.06 cash per TSH share and RM44.94 via the issuance of 21 new TSH shares at an issue price of RM2.14. The offer price values PUPB at 14.6 times of the company’s average earnings over the last three years. According to the group chairman, TSH looks forward to working closely with the management and shareholders of PUPB, as it is optimistic on the promising synergies to be gained from the cooperation between the two companies.
Significance: The merger stands to benefit both TSH and PUPB, as the latter owns 14,800 ha of plantation land next to TSH plantations in Lahad Datu, Sabah.

Biocon Facility Operational By End-2014
Biocon Ltd, a top biotechnology firm based in India expects its maiden RM500 million manufacturing and research and development (R&D) facility in Iskandar Malaysia to be operational by end of 2014. Currently, RM250 million has been invested for the facility and production is expected to begin by early 2015. The facility will be developed in 2 phases where the ground breaking for the first phase of the development took place last September and the second is scheduled to start in 2015 with date of completion expected to be by 2020. The facility is considered the largest investment in Malaysia’s biotechnology sector, which not only will be a production base for Southeast Asia, but also the global market. Furthermore, Manipal Education Malaysia and Biocon Malaysia will collaborate to provide an internship programme and graduate employment programme for the admission of Manipal International University (MIU) students and graduates into Biocon’s facility for training and employment.
Significance: Biocon is a global biopharmaceutical company with high-tech manufacturing and research arms. The said facility is stated to be producing high-end biosimilars and other biopharmaceutical products at affordable prices.

SP Setia 9-month Net Profit Up 9%
SP Setia Bhd’s net profit for the nine months ended July 31 climbed 8.67 percent to RM266.79 million at the back of higher revenue recognition which was RM1.76 billion, up 10.24 percent from a year ago. Its basic earnings per share however dropped slightly to 14.1 sen from 14.62 sen. As at Aug 31, the group’s property sales hit RM3.31 billion, which exceeded the group’s full-year sales for the financial year 2011. Apart from the group’s existing projects, newly launched projects such as Aeropod in Sabah, KL Eco City’s first residential tower; 18 Woodsville; the group’s maiden project in Singapore; and 11 Brook Residences in Penang also contributed to the strong sales performance. SP Setia has recently completed the acquisition of the iconic Battersea Power Station site in Central London through its 40 percent owned jointly controlled entity, Battersea Project Holding Co Ltd.
Significance: The developer is well set to achieve its sales target of RM4 billion for the FY12 ending October, with strong indicators coming from its results for the first nine months of FY12 which are indicative of the group’s strong sales performance seen so far.