OCK Group, Perak Corp, CCM, Prolexus

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KUALA LUMPUR (Oct 24): Based on newsflow and corporate announcements today, the following stocks may garner interest next Monday (Oct 27) when the market resumes trading next week: OCK Group Bhd, Perak Corp Bhd, Chemical Company of Malaysia Bhd (CCM) and Prolexus Bhd.

OCK Group Bhd announced today that the Securities Commission (SC) has approved its proposed transfer from the ACE Market to Bursa Malaysia's Main Market.

In a filing with Bursa, the telecommunications network services provider said the SC had, through its letter dated Oct 21, informed the company on the decision.

It added that the SC had also approved the application for the proposed lifting of the moratorium on the OCK shares held by Aliran Armada Sdn Bhd, Ooi Chin Khoon, Abdul Halim bin Abdul Hamid, Low Hock Keong, Chang Tan Chin and Chong Wai Yew, in conjunction with the proposed transfer.

"The lifting of the moratorium is to be effective on the date of the official listing of OCK on the Main Market of Bursa Malaysia," the filing read.

OCK rose nine sen to close at RM1.46 with 3.67 million shares changed hand, translating into a market capitalisation of RM485.47 million.

Perak Corp Bhd announced it had received a letter from its controlling shareholder Perbadanan Kemajuan Negeri Perak (PKNP), together with its parties acting in concert, requesting the company to withdraw the proposed selective capital reduction (SCR) and repayment exercise.

The request came after a substantial shareholder Sime Darby Property Bhd, which holds a 6.13% equity stake, wrote to Perak Corp to inform the former would vote against the proposed exercise.

Perak Corp’s board said it would deliberate on the withdrawal of the proposed SCR and repayment, which would pave way for PKNP to take the asset-rich company private at RM3.90 per share.

The announcement would not augur well on Perak Corp share price, which has rallied on the proposed SCR and repayment.

Sime Property has 13% of the voting shares in hand, which is sufficient to block the proposed exercise.

PKNP is the largest shareholder in Perak Corp with a 52.27% stake, followed by Sime Property.

Perak Corp told Bursa Malaysia that the proposed SCR would require at least 50% approval of the entitled shareholders at the extraordinary general meeting (EGM), and 75% in value to the votes held by the entitled shareholders that are cast either in person or by proxy at the EGM.

Further, the number of votes cast against the proposed selective capital reduction and repayment must not be more than 10% of the votes, the announcement said.

To recap, Perak Corp had on Jan 6, announced that it has been directed to undertake a SCR and repayment exercise that will see PKNP and three other associated firms owning the company.

The stock has been suspended today, pending a material announcement. Prior to the suspension, Perak Corp shares were last traded at RM3.57 yesterday, for a market capitalisation of RM357 million.

Chemical Company of Malaysia Bhd (CCM) saw the emergence of Lembaga Tabung Haji (LTH) as a substantial shareholder, with a 5.01% stake.

The pilgrim fund board has subsequently raised its stake to 5.03%.

In a filing with Bursa Malaysia today, CCM said LTH had on Oct 16 this year, acquired 500,000 shares. The acquisition raised LTH's direct shareholding in CCM to 22.94 million shares, or 5.01%.

LTH had subsequently bought more CCM shares over the next few days. As of yesterday (Oct 23), LTH owned 5.03% in the chemical and pharmaceutical outfit, according to CCM.

CCM closed unchanged at RM1.10, giving it a market capitalisation of RM500.10 million.

Garments manufacturer Prolexus Bhd has proposed a two-for-five bonus issue, with the issuance of up to 36.9 million bonus shares.

In a filing to Bursa Malaysia today, Prolexus said the issuance of up to 36.95 million bonus shares is on the basis of two bonus shares for every five existing Prolexus shares held by the shareholders.

Upon exercising the proposed bonus issue, the group would see a maximum of 129.32 million shares with share capital of RM64.6 million, as compared with 81.74 million shares and share capital of RM40.87 million currently.   

It said the proposed bonus issue would be fully capitalised from the company's retained profits.

"The board confirms that the reserves required for the capitalisation of the proposed bonus issue, based on the latest audited financial statements for the FYE July 31, 2014, are adequate and unimpaired by losses on a consolidated basis," it said.

The proposed bonus issue is expected to be completed by the first quarter of 2015, it said.

The stock climbed two sen or 1.27% to close at RM1.60, brings its market capitalisation to RM125.37 million.