Felda Global Ventures Holdings Bhd (FGV) is acquiring a 37% stake in PT Eagle High Plantations Tbk — the third largest plantation group listed in Jakarta — for US$631.5 million (RM2.37 billion) cash and 95.44 million new FGV shares, representing 2.55% of the enlarged and issued share capital of the group.
This confirms The Edge Financial Daily’s report today that FGV is going to buy a substantial stake in PT Eagle High, which is controlled by Tan Sri Peter Sondakh.
In its filing to Bursa, FGV said its wholly-owned unit Felda Global Ventures Kalimantan Sdn Bhd (FGV Kalimantan) has entered into a heads of agreement (HoA) today with PT Rajawali Capital International (Rajawali Capital) and PT Rajawali Corpora (Rajawali Corpora), in relation to the proposed acquisition of PT Eagle High (from Rajawali Capital), as well as the acquisitions of 95% stakes in PT Cendrawasih Jaya Mandiri and PT Karya Bumi Papua, and a 93.3% stake in PT Rizki Kemilau Berjaya (from Rajawali Corpora).
The proposed stake acquisitions of PT Cendrawasih, PT Karya Bumi and PT Rizki Kemilau Berjaya (RKB), are for a collective purchase consideration of US$66.5 million (RM249.1 million).
FGV said the proposed acquisitions are “in line with its plan to transform FGV Group into one of the largest integrated plantation companies globally, through increasing land bank, improved age profile of crops, potential cost reductions and strategic long-term partnership with Rajawali Corpora — one of the most notable conglomerates in Indonesia”.
FGV said the deals are subject to the completion of due diligence investigations by FGV Kalimantan, which is to be completed before July 31, 2015.
Subsequent to that, FGV Kalimantan intends to enter into a conditional sale and purchase agreement for the proposed acquisitions, which will require shareholders’ approval.
Bina Puri Holdings Bhd has proposed a private placement to raise up to RM12.12 million, based on an illustrative offer price of 50 sen per share.
In a filing with Bursa, Bina Puri (fundamental: 0.15; valuation: 2) said some RM9.79 million will be utilised for the group's working capital, while about RM2 million will be used to repay bank borrowings.
Bina Puri expects to issue up to 24.23 million shares, equivalent to 10% of its issued and paid-up capital, which will be enlarged to 242.34 million shares.
The share placement is expected to be completed within six months from the date of the approval by Bursa Securities .
TA Global Bhd has completed the sale of its 65% stake in a Canadian property development joint venture (JV) for RM69.51 million.
In a statement to Bursa Malaysia today, TA Global said it sold the stake to Townline Gardens Inc, which already owns 35% in the JV.
"The disposal has now been completed, following the closing conditions being met and payment of the disposal consideration by the purchaser, in accordance with the terms of the Termination Agreement on June 2, 2015," TA Global said.
Prior to the stake sale, TA Global and Townline Gardens had planned to undertake a property project known as "The Gardens" in British Columbia.
Both companies had planned to undertake the project within an 8.8-ha (22 acre) tract there.
AirAsia Bhd’s accounting and cash flow were questioned by research firm GMT Research, which said it’s in discussions with the region’s biggest budget carrier about its concerns.
The June 10 report questioned the airline’s “accounting, profit generation, cash-flow issues, leverage and group structure,” GMT Research’s founder Gillem Tulloch said in an e-mail Friday.
The report is currently available only for the researcher’s subscribers, and the firm can publicly discuss the matter from June 24 only, it said.
AirAsia's Group Chief Executive Officer Tony Fernandes declined to comment.
Shares of AirAsia and its long-haul affiliate AirAsia X Bhd plunged in Kuala Lumpur trading Thursday (June 11), on record volumes in reaction to the GMT report, Malayan Bank Bhd analyst Mohshin Aziz said today.
Pricewaterhouse Coopers, the airline’s auditor, approved the 2014 accounts of the airline without any qualification, Mohshin said.
GMT Research is an accounting research firm licensed by Hong Kong’s Securities & Futures Commission, not a short seller, the firm said on its website.
Meanwhile, Selangor Menteri Besar Mohamed Azmin Ali said he is confident that the state's water restructuring exercise will be resolved in two weeks’ time.
He said after a meeting with Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili yesterday, both Selangor and Putrajaya managed to reach a consensus over issues pertaining to the agreement, which included the takeover of land and asset.
He said apart from finalising the restructuring of water services, several other issues in dispute were resolved.
On Puncak Niaga Holdings Bhd (PNHB)'s threat to rescind the agreement with the Selangor-owned entity, Pengurusan Air Selangor Sdn Bhd, Azmin said the issue is between the water concession and Putrajaya.
The Selangor water restructuring exercise was halted since March, following various disagreements between Selangor and Putrajaya.
Farm's Best Bhd has proposed to sell 10 parcels of freehold vacant lands, measuring 22.3562 hectares (55.24 acres) in Ledang, Johor, for RM27 million.
In a filing with Bursa, Farm's Best said it is likely to recognise a disposal gain of RM4.515 million or seven sen per share from the deal.
The poultry group plans to use the proceeds raised from the land disposal, for repayment of bank borrowings (RM14 million); and some RM12.04 million has set aside for working capital, which include purchase of raw materials in its existing feed mill based in Malaysia.
Alam Maritim Resources Bhd is bidding for up to RM3 billion worth of oil and gas support service contracts to sustain the company's financials, group managing director and chief executive officer Datuk Azmi Ahmad said.
Azmi said Alam Maritim's (fundamental: 1.6; valuation: 1.5) success rate was between 10% and 15%.
He said the group's current order book stood at RM900 million, which could keep the company busy for the next two to three years.
"We are tendering for RM2.5 billion to RM3 billion worth of projects. Alam is eyeing a vessel utilisation rate of between 73% and 75%, higher than 71% in last year," Azmi said at a press conference, after the company's annual general meeting here today.
Alam Maritim is also eyeing the merger and acquisition route to grow its business. Azmi said the company intends to take advantage of current low crude oil prices, to acquire assets so as to strengthen the group's position.
Azmi added that Thailand, Indonesia, Myanmar and the Gulf region, were among exciting markets for Alam Maritim, and that the group is in talks with counterparts in Brunei and Vietnam for more projects.
Comintel Corp Bhd expects to reap some RM6.67 million in revenue every year, under a 16-year power purchase agreement with Tenaga Nasional Bhd.
In a filing with Bursa, Comintel (fundamental: 0.35; valuation: 0.9) said its unit, Comintel Green Technologies Sdn Bhd, signed the renewable energy power purchase agreement with Tenaga (fundamental: 1.3; valuation: 1.8) on Nov 15, 2013.
The agreement was effective since May 31, 2015. Comintel said it would sell electricity to Tenaga at 42.31 sen per kilowatt hour (kWh).
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations).
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