KUALA LUMPUR (Feb 13): Based on corporate announcements and news flow today, companies that may be in focus on Tuesday (Feb 14) could include the following: Tecnic Group Bhd, D.B.E. Gurney Resources Bhd, IOI Properties Group Bhd, CSC Steel Holdings Bhd, Ekovest Bhd, Kinsteel Bhd, Perwaja Holdings Bhd, PDZ Holdings Bhd, Multi Sports Holdings Ltd and Dagang NeXchange Bhd.
Minority shareholders of Tecnic Group Bhd have been told to reject the mandatory takeover offer at 63 sen per share by Rohas-Euco Holding Sdn Bhd, Tan Sri Nik Awang @ Wan Azmi Wan Hamzah, Puan Sri Nik Anida Nik Manshor, Sia Bun Chun and Chan Liew Hoon.
Independent adviser Mercury Securities Sdn Bhd said the offer is "not fair" and "not reasonable" because the offer price is lower than the value of the offer shares.
Mercury Securities has derived the fair value for the entire equity interest in Tecnic at between RM250.43 million and RM271.77 million, representing 70 sen to 76 sen per Tecnic share based on the discounted cash flow valuation method.
"(Thus,) the offer price of 63 sen represents a discount of 7 sen to 13 sen or 10-17.11% to the range of fair values per Tecnic share," it said in an independent advice letter filed with Bursa Malaysia today.
The offer price is also lower than the closing market price of Tecnic Group’s shares for approximately 95% of the total market days since the announcement date of the Memorandum of Understanding (MoU) on Sept 21, 2015 up to the last practicable date (LPD) on Feb 6, 2017.
Mercury Securities also deemed the offer not reasonable because Tecnic shares will remain tradable on the Main Market of Bursa Malaysia following the acquisition.
Integrated poultry company D.B.E. Gurney Resources Bhd will open two new HARUMi fast food restaurants in Sabah this year, as part of its plan to expand the local fried chicken brand across Southeast Asia, Taiwan, and China.
Apart from restaurant formats, the group will open 19 kiosks and two food trucks in the state. This is part of its expansion plans to establish 3,000 kiosks, 300 food trucks and 30 HARUMi restaurants across Malaysia by 2018.
HARUMi was launched in October last year and has since grown to 200 kiosks and express outlets, three food trucks and three restaurants across Peninsular Malaysia.
At the same time, D.B.E. Gurney plans to set up new HARUMi restaurants in Taiwan and Chongqing, China within the second quarter of this year, leveraging on the expertise of D.B.E. Gurney’s Taiwanese partner.
“In Taiwan itself, we target to open 10 restaurants this year,” D.B.E. Gurney group managing director Datuk Alex Ding Seng Huat told journalists at the signing of a Memorandum of Understanding (MoU) with Koperasi Penggiat Seni Sabah Bhd (COSENI) here on Sunday.
On Sunday, D.B.E. Gurney's wholly-owned subsidiary D.B.E. Poultry Sdn Bhd signed an MoU with COSENI, offering franchising opportunities for the cooperative members to participate in HARUMi.
IOI Properties Group Bhd is looking to launch property projects worth an estimated gross development value (GDV) of RM2 billion to RM2.5 billion in 2017, said chief executive officer Lee Yeow Seng.
"We are quite spread out. We have on-going projects in Singapore, the Klang Valley, Johor and Xiamen (China)," he told reporters after the group's extraordinary general meeting (EGM) today.
Yeow Seng said sales contribution are now evenly spread between local and overseas markets, which he described as well-diversified and bodes well for the property developer as the local property market is slowing down.
A substantial rise in production cost, due to higher raw materials cost that was exacerbated by the rapid weakening of the ringgit against the greenback, caused CSC Steel Holdings Bhd's earnings to fall by 78% in its final quarter of the financial year 2016.
The steel product maker's net profit shrank to RM6.19 million in the fourth quarter ended Dec 31, 2016 (4QFY16) from RM28.53 million a year ago, with earnings per share (EPS) falling to 1.68 sen from 7.47 sen, despite improved revenue, which grew 18% year-on-year (y-o-y) to RM286.92 million from RM242.54 million.
The better topline was primarily due to a significant increase in sales volume and higher selling prices of its steel products, it said.
Nevertheless, the company is recommending a final dividend of 10 sen per share, together with a four sen special dividend, for FY16.
On an annual basis, the group saw a 26% y-o-y net profit growth to RM68.69 million for FY16 from RM54.6 million, though revenue remained flattish at RM1.04 billion versus RM1.02 billion previously.
The significant earnings rise, which led to its annual EPS growing to 18.63 sen from 14.75 sen, was mainly due to lower cost of hot-rolled coils (HRCs) and larger overall sales volume, it said.
Ekovest Bhd has completed the sale of a 40% stake in the Duta-Ulu Kelang Expressway (DUKE) concession to the Employees Provident Fund Board (EPF), and will be paying a 25 sen special dividend to shareholders.
In a filing with Bursa Malaysia today, Ekovest said its shares will trade ex-dividend on Feb 23, with the payout slated for March 8.
Ekovest previously said it was disposing of its 40% equity interest held in Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi) to the EPF for RM1.13 billion.
Kesturi is the concessionaire for DUKE, a 34-km highway comprising two phases, with a concession period of 54 years. It was previously an indirect wholly-owned unit of Ekovest. On completion of the stake sale, it is left with a 60% stake in Kesturi.
Ekovest said the remainder of the disposal proceeds will be used for repayment of borrowings, exit payment, working capital and expenses for the corporate exercise.
The Corporate Debt Restructuring Committee (CDRC) will no longer assist in the mediation between troubled steelmaker Kinsteel Bhd and its 28.39% associate Perwaja Holdings Bhd and their lenders.
The CDRC, established by Bank Negara Malaysia, had on Sept 26, 2013, approved Kinsteel’s application for the committee to assist as mediator between Kinsteel group and the creditors.
In separate filings with Bursa Malaysia today, both Kinsteel and Perwaja said the CDRC has notified the companies of their removal from the committee’s purview from Feb 7, 2017.
"Moving forward, Kinsteel and Perwaja will negotiate a resolution of its debts directly with the lenders. The board is currently deliberating on the next course of action, and will make further announcements in due course," they added.
The arrest of PDZ Holdings Bhd's vessel PDZ Mewah will result in losses of RM90,000 to RM100,000 per month for the group.
In a filing with Bursa Malaysia today, PDZ attributed the losses to the additional costs arising from purchasing slots from third party vessels.
"The financial and operational impact to the group is expected to be minimal as the group has made the necessary arrangements to secure slots from third party vessels as an interim measure to continue providing customers with the same services as currently provided by the vessel," it said.
PDZ added that its solicitors Mohd Latip & Associates have via their letters dated Jan 26, 2017 and Feb 7, 2017 stated that they are of the view that the group has a strong arguable case to challenge the arrest and set aside the claims.
China-based shoemaker Multi Sports Holdings Ltd, which is going to miss another fiscal reporting due date tomorrow, says it has received details of alleged unreported transactions and litigation involving its operating unit in China and the company's senior management.
In a bourse filing today, Multi Sports said the unit was Jinjiang Baixing Shoe Materials Ltd. "Should the allegations be validated, such information would be material and would need to be incorporated into the outstanding Annual Report," it said.
As such, the company said it is unable to release its outstanding annual report for the financial year ended Dec 31, 2015 (FY15) and quarterly results for the second quarter of FY16 (2QFY16) and 3QFY16 on Feb 14.
Dagang NeXchange Bhd (DNeX) has been appointed as the exclusive project consultant for the road charge vehicle entry permit (RC VEP) system for the Thailand-Malaysia border and other borders with Thailand.
In a filing with Bursa Malaysia today, DNeX said its 51%-owned subsidiary DNeX RFID Sdn Bhd has accepted a letter of award dated Feb 9 from Tiffa Edi Services Co Ltd for the appointment, which entails that the group provides consultancy, advice and services as the technology partner and solution provider for the project.
"DNeX will also be working with Tiffa Edi to coordinate project proposal with proposed blueprint in the implementation of the project," it added.
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