Companies in the news: Sime Darby, Perisai Petroleum, Pesona Metro, YFG, Willowglen MSC, Plenitude, The Nomad Group, 7-Eleven and Rapid Synergy
Chen Shaua Fui
KUALA LUMPUR (March 2): Based on news flow and corporate announcements today, stocks in focus tomorrow (Tuesday, March 3) could include: Sime Darby Bhd, Perisai Petroleum Teknologi Bhd, Pesona Metro Holdings Bhd, YFG Bhd, Willowglen MSC Bhd, Plenitude Bhd, The Nomad Group, 7-Eleven Malaysia Holdings Bhd and Rapid Synergy Bhd.
Sime Darby Bhd (fundamental: 1.3; valuation: 1.3)'s wholly-owned unit, Sime Darby Plantation Sdn Bhd (Sime Darby Plantation), has completed the acquisition of UK and Papua New Guinea-listed New Britain Palm Oil Ltd (NBPOL).
The NBPOL buy will add another 135,000 ha of land in Papua New Guinea to Sime Darby Plantation’s land bank and bring it to about 1 million ha, spread out in five countries.
Following the completion of the acquisition, five representatives from Sime Darby Plantation will be appointed to the board of NBPOL, namely Datuk Henry Sackville Barlow, Datuk Rashidi Che Omar, Rosely Kusip, Tan Sri Mohd Bakke Salleh and Datuk Franki Anthony Dass, with Barlow set to be appointed chairman of the board.
To recap, on Oct 9 last year, Sime Darby launched a conditional general offer (GO) to acquire all shares in NBPOL at £7.15 per share or £1.07 billion cash. The offer turned unconditional in February this year.
Oil and gas company Perisai Petroleum Teknologi Bhd (fundamental: 0.35; valuation: 1.2) has secured a further extension — worth US$3.65 million (RM13.24 million) — for its marine vessel charters.
Perisai’s major shareholder, Emas Offshore Pte Ltd, opted to lease Perisai's three vessels for another two years, from August 31, 2015 to August 31, 2017.
The extensions will have no effect on the issued and paid-up capital of the company and is expected to contribute positively to Perisai group’s earnings and net tangible assets for the financial year ending December 31 2015 and the financial periods thereafter, in the duration of the extension charters.
The two-year extension followed a three-year extension between September 1, 2012 and August 31, 2015, for the vessels known as Sarah Gold, Sarah Jade and Bayu Pearl.
Pesona Metro Holdings Bhd (fundamental: 1.7; valuation: 0.3)’s wholly-owned subsidiary Pesona Metro Sdn Bhd has secured a joint-venture project worth RM172.72 million with Pembinaan Kaleigh Sdn Bhd and Hanawin Sdn Bhd, for road works in Pahang.
The contract entails road works for Section 3E2 (Merapoh to Kg Kubang Rusa), which is a part of the Central Spine Road Package 3, linking Gua Musang, Kelantan to Kg Relong, Pahang.
Pesona Metro had previously completed the road works for Section 3F of the highway in 2013.
The works are expected to take 36 months from the date of procession of the site on March 17, 2015.
YFG Bhd (fundamental: 0.15; valuation: 0.6)’s wholly-owned subsidiary, YFG Properties Sdn Bhd (YFGP), has proposed to dispose of a piece of freehold land in Bukit Jelutong, together with a three-storey office building and an annexed single storey warehouse, to Rangkaian Handal Sdn Bhd for RM17.6 million.
YFG expects to book a net gain of RM1.88 million from the disposal, which translates into a consolidated earnings per share (EPS) of 31 sen for the financial year ending June 30, 2015.
The property was acquired by YFGP on Aug 16, 2012, at a cost of RM13.2 million. YFGP had since incurred additional costs of about RM1.52 million for renovation, legal fees and stamp duty.
Of the total proceeds, YFG has allocated RM13.5 million to repay borrowings, RM3.095 million for working capital and RM1.005 million to cover expenses incurred for the disposal.
Pursuant to the disposal, YFG will be relocating its operations to another premise, yet to be determined.
Willowglen MSC Bhd (fundamental: 3; valuation: 1.2)’s wholly-owned subsidiary, Willowglen Services Pte Ltd, has been awarded a three-year contract valued at RM9.91 million by Singapore’s SP Power Assets Limited, for remote monitoring and control facilities.
The contract, which commenced on Feb 23 and will complete by Feb 22, 2018, was to provide service for extension of remote monitoring and control facilities to part of the remaining distribution network, consisting of 1,000 6.6KV Substations.
The contract is expected to contribute positively to the group’s earnings and net assets per share for the financial years ending Dec 31, 2015 to 2017.
Plenitude Bhd (fundamental: 2.7; valuation: 1.8) has proposed a conditional take-over of The Nomad Group Bhd (fundamental: 1.05; valuation: 1.2) at an offer price of RM1.25 per share.
The takeover will be satisfied by the issuance of new Plenitude shares at an issue price of RM2.50 each, with each holder of the offer share who accepts the offer to receive one consideration share (Plenitude shares) for every two offer shares (The Nomad Group shares) surrendered.
The acquisition will see the issuance of up to 111.53 million new Plenitude shares for RM278.83 million. The new shares issued translates to 29.23% of the enlarged share capital. The deal would increase Plenitude's issued and paid-up share capital to 381.53 million, from 270 million.
The proposed offer represents an opportunity for the company to expand its hotel segment to diversify its earnings base and enhance its source of recurring income. Following the acquisition, Plenitude will take The Nomad Group private.
SmallCap World Fund Inc has ceased to be a substantial shareholder of 7-Eleven Malaysia Holdings Bhd (fundamental: 0.3; valuation: 1.55), after disposing of 32.66 million shares or a 2.64% stake in the company.
An earlier filing showed SmallCap World Fund had disposed of some 94,100 7-Eleven shares on Feb 18 this year.
Rapid Synergy Bhd (fundamental: 0.95; valuation: 0.3), which is 29.6%-owned by Datuk Dr Yu Kuan Chon, has acquired an additional 491,500 shares or a 0.2% stake in Hong Leong Capital Bhd (HLCap) between Jan 16 and Feb 27, 2015, for RM6.28 million.
The latest purchase adds to another 0.58% stake which Rapid had acquired earlier.
In January, Rapid had acquired 511,500 shares in HLCap between Dec 19, 2014, and Jan 8, 2015, for a total of RM6.98 million.
Before that, the firm had also acquired 923,800 HLCap shares or a 0.37% stake between Oct 16 and Dec 2, 2014, for some RM12.67 million.
(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.)