Reports » Malaysia
Malaysia stock market and companies daily report (September 18, 2013)
Focal Aims Receives RM230.7m Takeover Offer
Eco World Development Holdings and Liew Tian Xiong have entered into an agreement with Focal Aims Holdings to purchase a 65.1 percent stake in the latter for RM230.7 million, or RM1.40 per share, in cash. Focal Aims’ key projects include an integrated properties development sitting on 2,500 acres of land in Kota Masai township in Iskandar, Malaysia and owns 1,053.8 acres of vacant freehold land in Plentong, Johor Bahru for a proposed golf resort. The firm returned to the black in FY12 after three years of losses. As at 30 Jun 2013, Focal Aims recorded RM24.2 million in net profit for the first nine months of its FY13, compared to RM3.9 million of earnings in the previous corresponding period. Post takeover, Eco World will emerge as Focal Aims’ largest shareholder and is expected to trigger a mandatory general offer for the company.
Significance: At RM1.40 per share, the offer price translates to a premium of 53.8 percent over its previous closing price of RM0.91 on 13 September 2013 and 11.1 percent to its net asset value per share as at 30 June 2013.
UMW O&G Secures Contract Worth US$24m
UMW Oil & Gas Corporation (UMW O&G), a unit of UMW Holdings, won a contract as a sub-contractor of Petrovietnam Drilling and Well Services Corporation to provide one of its jack-up drilling rigs – NAGA 3 – for use by Japan Vietnam Petroleum through its subsidiary, UMW Standard Drilling. The rig will be used to drill two wells with an option to drill two additional two wells. The drilling contract, worth approximately US$24 million, is expected to commence in 1H14. Presently, NAGA 3 is in the middle of works with Petronas Carigali. Separately, UMW O&G has attracted eight institutional investors, including Fidelity Investments and a J.P. Morgan-back fund, for its upcoming initial public offering (IPO).
Significance: The contract win will aid in shoring up investors’ confidence as UMW O&G seeks to raise RM2.4 billion from its IPO.
Y&G Proposes RM100m Land Purchase
Y&G Corporation’s subsidiary, Hala Kota Development (HKD), proposed an acquisition of 108 hectares of leasehold land in Klang Valley, Selangor for RM100 million. Based on a market value of RM242 million attributed by independent valuers, Messrs. Jones Lang Wootton, the purchase price represents a 58.7 percent discount. HKD intends to develop the land into an integrated township with a potential gross development value (GDV) over RM1 billion. The land acquisition will be funded through a combination of bank borrowings and a proposed rights issue of up to 30.8 million new Y&G shares with up to 15.4 million new warrants at an indicative issue price of RM1 per rights share. All proposals are expected to be completed by 3Q14.
Significance: Presently, Y&G has three on-going development projects within the Klang Valley worth a combined GDV of RM898 million. The proposed acquisition will more than triple Y&G’s undeveloped landbank to 364 acres.
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