KUALA LUMPUR: Based on corporate announcements and news flow today, stocks in focus on Tuesday (Oct 10) may include: Hovid Bhd, Sanichi Technology Bhd, Kronologi Asia Bhd, Serba Dinamik Holdings Bhd, Prestariang Bhd, EKA Noodles Bhd, Mudajaya Group Bhd and Felda Global Ventures Holdings Bhd.
Hovid Bhd has received a conditional voluntary takeover offer from its controlling shareholder, managing director and chairman, David Ho Sue San.
Ho, who holds a 33.72% stake in the group, is offering to buy all the remaining shares he does not own at 38 sen per share in a bid to take the company private. The offer price represents a 6 sen or 18.75% premium over its last traded price before the announcement.
The takeover offer, which sees Fajar Astoria Sdn Bhd acting as joint offeror, also includes an offer to purchase the group’s outstanding five-year warrants at 20 sen per warrant. Ho and Fajar Astoria collectively own 56.43% of the 181.84 million warrants, which are due to expire on June 5, 2018 at an exercise price of 18 sen per warrant.
Loss-making Sanichi Technology Bhd, whose share price has been declining since April, is proposing a rights issue with warrants to raise some RM59.26 million on base case scenario — an amount that is more than its existing market capitalisation of RM48.9 million — which will be used mainly for its property development activities.
The exercise involves up to 990.59 million new shares as well as 495.29 million warrants on the basis of two rights shares together with one free Warrant E for every one existing Sanichi share held by the entitled shareholders on an entitlement date to be determined later.
Meanwhile, the exercise price of the Warrants E shall also be decided by the group at a later date once it has obtained all relevant approvals before the entitlement date.
However, as Sanichi intends to raise a minimum of RM10 million, it will undertake the exercise based on the minimum subscription level of 100 million rights shares along with 50 million Warrants E, assuming that the rights shares will be issued at 10 sen each.
The 10 sen, said the group, represents a discount of about 13.6% to the theoretical ex-all price of Sanichi shares of 11.57 sen, based on the five-day volume weighted average market price of 16.27 sen up to and including Sept 27.
In its bid to expand into the enterprise data management market, particularly in Hong Kong and Taiwan, Kronologi Asia Bhd is buying over Quantum Storage (Hong Kong) Ltd for RM45 million.
The purchase price will be satisfied via the issuance of up to 40.8 million new Kronologi shares at 98 sen each and a cash payment of up to RM5 million. Currently, its presence in the EDM industry covers South East Asia, as well as India.
Serba Dinamik Holdings Bhd is going to jointly set up and operate a chlorine skid mounted chlor-alkali plant in Tanzania, which marks its expansion into the African continent.
Its wholly-owned unit Serba Dinamik International Ltd (SDIL) has inked a joint venture agreement with Tanzanian company, water-related solution supplier Junaco (T) Ltd (JTL), for the development of the 45-tonnes-per-day plant that will be located on an industrial plot in the Msufini Area, in the Kibaha District Coast Region.
To undertake the project, Serba Dinamik and its partner will set up a special purpose vehicle in Dubai known as Msufini LLC, which will fully own the plant. SDIL will hold a 25% stake in Msufini, while JTL will own the remainder.
Serba Dinamik said it will be able to expand its business into a new region that is Tanzania, which will ultimately expand its brand recognition into Africa for the first time. It will also be able to participate in the engineering, procurement, construction and commissioning works, which is valued at RM295.26 million (US$69.8 million).
Prestariang Bhd is buying eight semi-detached signature corporate offices and retail suites in Cyberjaya for a total of RM11.41 million.
The properties, which are adjacent to eight properties acquired for RM25.51 million in January, are in a strategic location to consolidate the group’s operations.
The properties are expected to house the group’s Sistem Kawalan Imigresen Nasional (SKIN) and EduCloud operations, software & services, TalentXChange and group corporate office.
EKA Noodles Bhd said its wholly-owned unit has been sued by two suppliers over non-payment of debts, totalling RM1.27 million.
Kilang Bihun Bersatu Sdn Bhd (KBBSB) owes Great Line Success Sdn Bhd, which supplied plastic packaging materials to KBBSB, RM349,802, which has been overdue since September 2016.
It also owes Bukit Raya Sdn Bhd, which supplied broken rice to the firm, about RM917,577. The payment has been overdue since December 2015.
EKA said the late payments were due to the “financial condition of KBBSB”. The suit has been fixed for case management at the High Court in Penang on Nov 7.
Mudajaya Group Bhd’s wholly-owned unit Mudajaya Corp Bhd clinched a contract worth RM1.16 billion for works related to the Light Rail Transit Line 3 (LRT3).
Mudajaya Corp received the Letter of Acceptance from Prasarana Malaysia Bhd for the construction of guideway, stations, park and ride, ancillary buildings and other associated works.
The contract brings Mudajaya’s outstanding orderbook to RM3.5 billion.
Datuk Zakaria Arshad has been reinstated as Felda Global Ventures Holdings Bhd's (FGV) group president and chief executive officer effective Oct 16.
Zakaria's return to FGV comes four months after he was suspended and forced to go on a leave of absence by former chairman Tan Sri Mohd Isa Abdul Samad, over alleged irregularities at one of the subsidiaries.