Tenaga, Global Oriented, JAKS, TDM, Peterlabs, Sedania, Yinson and Scan Associates

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KUALA LUMPUR (July 3): Based on corporate announcements and news flow today, the companies that may be in focus next week (Monday, July 6) could be the following: Tenaga Nasional Bhd, Global Oriental Bhd, JAKS Resources Bhd, TDM Bhd, Peterlabs Holdings Bhd, Sedania Innovator Bhd, Yinson Holdings Bhd, Scan Associates Bhd.

Tenaga Nasional Bhd has entered into a share sale and purchase agreement (SSPA) with 1Malaysia Development Bhd (1MDB) for the acquisition of a 70% shareholding in Jimah East Power Sdn Bhd for RM46.98 million.

In a filing with Bursa Malaysia today, Tenaga (fundamental:1.3; valuation:1.8) said that it has submitted the letter of acceptance to the Energy Commission’s addendum to the Letter of Award which was issued on June 29, 2015.

The remaining 30% in Jimah East owns by Mitsui & Co Ltd.

Upon completion of the acquisition, Jimah East will become a subsidiary of Tenaga.

Project 3B, which located in Jimah, Negri Sembilan, is expected to achieve its scheduled commercial operation date for Unit No. 1 and Unit No. 2 no later than June 15, 2019 and Dec 15, 2019 respectively, according to the filing.

Tenaga said that the acquisition consideration of RM46.98 million, which it will pay with its internal funds, was derived upon the completion of a detailed due diligence conducted by the utilities giant itself, and its appointed consultants on all technical, legal and financial aspects.

Tenaga mentioned that the actual project development cost incurred by 1MDB is RM83.68 million as at April 17.

It added that the government approved for Tenaga to acquire the project at a higher levelised tariff as compared to the previous award to 1MDB-Mitsui, in order to offset the increase in construction cost and foreign exchange rates.

Tenaga said Project 3B will add 2,000MW of generating capacity and will increase its generation market share from the current 53.3% to 57.7% by year 2020.

The estimated project costs are approximately RM11.7 billion, Tenaga said it will be financed through a combination of project finance and equity.

JAKS Resources Bhd has requested for a suspension of trading of its securities next Monday (July 6), pending a material announcement.

Next Monday, JAKS (fundamental: 0.65; valuation: 1.5) is due to sign an agreement with a new equity partner, to jointly develop a 1,200MW coal-fired power plant in Hai Duong Province, Vietnam, which is under a build-operate-transfer contract.

The power plant is expected to be the game changer for JAKS, which was earlier trying to rope in Tenaga to participate in the project. 

Property developer Global Oriental Bhd plans to acquire the remaining 35% stake in Pewira Nadi Trading Sdn Bhd (PNT) for RM27 million cash to make the latter its wholly-owned subsidiary.

According to Global Oriental's (valuation: 1.5, fundamental: 0.8) filing with Bursa Malaysia today, it signed the share sale agreement with PNT shareholder Lee Kian Jin.

PNT’s principal business is trading and distribution of kitchenware products.

TDM Bhd has proposed a private placement of new shares, which may raise some RM91.86 million to finance the plantation company's working capital needs.

In a filing with Bursa Malaysia today, TDM (fundamental: 1.25; valuation: 1.4) said it planned to place out, up to 148.17 million shares at an indicative price of 62 sen each.

The group said the corporate exercise enables TDM to raise funds to meet its working capital requirements and expansion programme, without incurring additional interest costs, as compared to bank borrowings.

TDM also said the proposed private placement may be implemented in one or more tranches, within a period of six months from the date of the approval from the regulator.

Animal nutrition specialist Peterlabs Holdings Bhd has fixed the price of its private placement shares at 19.5 sen each.

In a filing with Bursa Malaysia today, Peterlabs (fundamental: 1.7; valuation: 1.4) said the price represented a discount of about 1.7 sen or 8.02% to the five-day volume-weighted average market price calculated until July 2.

Peterlabs had on March 30 proposed the said private placement of 18.8 million new shares to raise fund for its working capital which includes payment to creditors for purchase of raw materials and other day-to-day operating expenses.

At 19.5 sen apiece, Peterlabs could raise about RM3.66 million from this corporate exercise, or which RM100,000 will be catered for the expenses of the private placement.

Newly-listed Sedania Innovator Bhd has appointed Kamshul Kasim as its chief executive officer (CEO) effective immediately.

In a filing with Bursa Malaysia today, Sedania said Kamshul, 54, has more than 30 years of experience in the telecommunications and technology-related industry.

Prior to his new role, Kamshul was previously the CEO of Société des Télécommunications de Guinée in Guinea, West Africa. He also held the positions of CEO and chief technology officer in Telekom Malaysia International (Bangladesh) — which is now known as Robi Axiata Ltd, and vice-president of various divisions, including mobile services division in Celcom Axiata Bhd.

The Employees Provident Fund (EPF) Board has trimmed its shareholding in Yinson Holdings Bhd from 5.01% to 50.65 million shares or 4.91%.

In June alone, the EPF had unloaded 8.64 million shares or a 0.84% stake in Yinson.

Hussin Othman has emerged as a new substantial shareholder at Guidance Note 3 (GN3) company, Scan Associates Bhd.

In a filing with Bursa Malaysia today, it was revealed that Hussin, 56, had acquired 10.17 million Scan Associates (fundamental: 0.15; valuation: 0) shares or a 5.09% stake in the company yesterday (July 2).

The company had earlier announced the emergence of MNC Wireless Bhd executive director Yeoh Eng Kong, 46, as a substantial shareholder in Scan Associates on June 25, 2015, after acquiring 500,000 shares, bringing his total shareholding in the company to 10.48 million shares or 5.24%.

(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.)