Intergrax, Pharmaniaga, TA Enterprise, TA Global, Takaso, GW Plastics and Tanjung Offshore

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KUALA LUMPUR (Mar 31): Based on corporate announcements and news flow today, companies that may be in focus on Wednesday, April 1, could include the following: Intergrax, Pharmaniaga, TA Enterprise, TA Global, Takaso, GW Plastics and Tanjung Offshore.

Integrax Bhd's co-founder Amin Halim Rasip has decided to part with his shares in the company, indicating he will be accepting Tenaga Nasional's (TNB) offer for Integrax (fundamental: 1.65; valuation: 1.2) at RM3.25 per share.

Amin holds a 24.76% stake in the port operator.   

Given the different directions pursued by TNB and PCB (Perak Corp Bhd) in respect to the future of the LBT (Lekir Bulk Terminal) and LMT (Lumut Maritime Terminal) assets, Amin said he will be selling his Integrax shares, as it will be more beneficial and productive for him to pursue the business projects and opportunities he intended to develop at Lumut, at a number of other suitable locations in Malaysia and the region, he said in a statement issued this evening.

TNB's revised takeover offer of RM3.25 per share turned unconditional on Tuesday (March 30), after it received valid acceptances totalling 50.82% or 152.88 million Integrax shares as at 5pm.

Pharmaniaga Bhd is aiming to increase its non-concession business to 60% in the next three to four years from 42% now, said the group’s chairman Tan Sri Lodin Wok Kamaruddin.

Lodin said the group is eyeing to increase its presence in the private healthcare sectors locally and abroad, as well as opening more stand-alone pharmacies under its Royal Pharma brand.

As for its manufacturing division, Pharmaniaga (fundamental: 0.95; valuation: 2.1) managing director Datuk Farshila Emran said the group has allocated RM40 million in capital expenditure (capex) to maintain its production plants.

TA Enterprise Bhd fell into the red for its fourth financial quarter ended Jan 31, 2015 (4QFY15), with a net loss of RM33.28 million compared with a net profit of RM29.21 million a year ago.

TA Enterprise (fundamental: 1; valuation: 3) reported a loss per share of 1.94 sen a share in 4QFY15 from an earnings per share (EPS) of 1.71 sen a share.

Revenue for 4QFY15 fell 18% to RM232.03 million from RM281.68 million a year ago.

Its unit, TA Global Bhd (fundamental: 1.05; valuation: 2.4), reported a net loss of RM2.51 million in 4QFY15, compared with a net profit of RM50.45 million a year ago, while revenue fell 22% to RM180.02 million from RM231.76 million.

For the full FY15, TAE (fundamental: 1; valuation: 3)'s net profit fell 29% to RM96.69 million from RM137.03 million in FY14, despite a 12% climb in revenue to RM979.50 million from RM870.73 million.

TA Global reported a 9% rise in net profit to RM144.93 million for FY15 from RM113.45 million in FY14, while revenue climbed 9% to RM757.81 million from RM692.42 million.

Going forward, TA Enterprise maintains a challenging outlook on the domestic economy, in view of slower export growth, lower investments in oil and gas (O&G) industry due to the decline in oil prices, and an anticipated moderate private consumption following the implementation of the goods and services tax.

TA Enterprise also expects lower income contribution from overseas and local property investments in its current financial year for its property investment division, due to upgrading works for some of its investment properties.

Takaso Resources Bhd has called off the proposed acquisition of Dynavance Construction Sdn Bhd.

Takaso and Dynavance Construction have decided to call of the shares sale agreement (SSA) that both parties had entered into in October last year, which would have seen Takaso buying the entire shareholdings of Dynavance for RM9.5 million in cash.

In a filing with Bursa Malaysia today, Takaso (fundamental: 1.25; valuation: 0.3) said both parties had, vide a deed of mutual rescission (DMR), decided to revoke the SSA with effect from today.

Among the DMR terms is that Dynavance will release Takaso from due performance and observance of all its obligations and covenants under the SSA, and likewise Takaso is to apply the same to Dynavance.

The DMR also stated that Dynavance is to return the sum of RM950,000 being the refundable deposit under the SSA to Takaso within 14 days from today.

To recap, Takaso had in October last year signed a SSA with Dynavance’s shareholders to buy the entire shareholdings in the latter for RM9.5 million cash.

Takaso had said then Dynavance might contribute some 25% or more to Takaso's net profit, thus diversifying Takaso's businesses of condom and baby care accessories manufacturing, to include construction and property development.

MCT Bhd, which is undertaking a reverse takeover (RTO) process on GW Plastics Holdings Bhd, has fixed the price for its new placement shares at RM1.28, aiming to raise RM384 million.

In a filing with Bursa Malaysia today, GW Plastics (fundamental: 1.65; valuation: 0.3) said 300 million new shares under the proposed private placement and proposed bumiputera issue have been fully allocated to the identified investors and bumiputera investors.

Based on the placement price and the issue price for the Bumiputera shares of RM1.28 per new share, a total of RM384 million gross proceeds were raised by the company from the proposed private placement and proposed bumiputera issue.

Tanjung Offshore Bhd executive director Tan Wee Koh and independent and non-executive director Shahrizal Hisham Abdul Halim have both resigned from the O&G services company, for “personal reasons”.

Tanjung Offshore (fundamental: 1.85; valuation: 0.6), via separate filings on Bursa, also announced the appointment of two new independent and non executive directors, namely Datuk Suraj Singh Gill, 44, and Datuk Syed Hussian Syed Junid, 54.

Suraj is the co-founder and managing partner of Deol & Gill, an established mid-sized boutique full-service legal firm based in Kuala Lumpur, while Syed Hussian, 54, is the director of business operations and sales support Asia in Western Digital Sdn Bhd. Syed Hussian is also a senior independent non-executive director in AWC Bhd.

Shahrizal, along with George William Warren Jr and Datuk Ab Wahab Ibrahim were members of an independent committee (IC) established by Tanjung’s board of directors this year to, among others, review some of the past deals in Tanjung.

Warren Jr had resigned from the board last week to explore other opportunities elsewhere.

Among the IC findings which were released on Jan 28 were possible conflicts of interests and breaches of fiduciary duty by two of its directors, Tan Sri Tan Kean Soon and Muhammad Sabri Ab Ghani.

Kean Soon and Sabri along with Tanjung group adviser Harzani Azmi had then been suspended from the company, but later on had their suspensions uplifted.

(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.)