Monday, 25 April 2011
Wednesday, 20 April 2011
Pos Malaysia divestment
Wednesday April 20, 2011
Pos Malaysia divestment
INVEST Malaysia has come and gone, and still there is no winner in the sale by Khazanah Nasional Bhd of its 32.2% stake in Pos Malaysia Bhd.
Perhaps that is apt, since the interests of minorities are very much in focus here, and the sellers need to carefully assess and address what might ultimately be not in line with the spirit of best practises.
Fact: Pos Malaysia's shareholding is highly fragmented about 23,800 shareholders, and ironically, majority owned by minorities.
We can see this from Pos' shareholding at the end of December, where there were 5,478 shareholders who owned a maximum of 100 shares in the postal company. This body of shareholders amounts to 23% of the total number.
A level higher, there are 8,443 shareholders who own between 100 and 1,000 shares, amounting to 35% of the total number of shareholders. And then there are another 8,531 shareholders who own a maximum of 10,000 shares in the company, also comprising about 35% of the total number of shareholders.
This would mean that 93% or a total of 22,452 retail minority shareholders of Pos Malaysia's may not enjoy the potential premium to the current price of RM3.51 as I write this article.
The rest of the shareholders are institutional funds such as the EPF, Socso and other unit trusts which will not enjoy this premium either.
(In a recent media release, Khazanah said it had shortlisted three and recently two bidders from five with offers ranging from RM3.38 to RM4.62 per share.)
Is this right? Should minorities be excluded from the potential upside on offer if the mandatory general offer (MGO) threshold of 33% is not breached?
This debate would be moot if the new owner is merely strategic. But as StarBiz rightly points out, Khazanah is asking bidders for their business plans for Pos Malaysia and rigorously vetting them. This suggests that the new owner could control the company with the 32.2% stake.
On the other hand, we also understand that Khazanah desires a “responsible exit” from Pos Malaysia as its services will impact all Malaysians thus the morally right thing for the seller to do whether control takes place or otherwise.
But the flipside is the possible exclusion of minorities from the premium potentially on offer that goes to only Khazanah because the sales falls short of the threshold level for an MGO by 0.8% .
Pos' book value per share stands at RM1.54 a share and it was reported initially that three shortlisted candidates were bidding between 2.2 times and 3 times, implying an offer range of RM3.38 to RM4.62 per share.
There are convincing arguments for minorities to be unhappy in such a situation where a new owner “slips in” without their consent or participation.
Firstly, there have been occasions in the past where minorities have not benefited from the exercise (such as Tan Sri Tajudin Ramli's 1994 acquisition of a 32% stake in Malaysia Airlines and Primus Pacific Partners' 2008 acquisition of a 20.2% block in EON Capital Bhd at a 55% premium).
Of course, the sellers might cite the possible upside from the stringent due diligence as a mitigating factor. After all, the reported final two shortlisted each bring their own niche expertise to the table, with one possibly looking to inject a bank via DRB, where, Khazanah the seller owns a substantial portion of it.
And Pos itself has been hard at work transforming itself. In June it announced a strategic alliance with UPS and jointly launched PosLaju International Premium, an international express delivery service serving over 215 countries.
And before that in January, Pos Malaysia and Maybank jointly launched a partnership to provide shared banking services at over 400 Pos Malaysia outlets around the country.
Is there a possible resolution to this? It depends.
Existing rules in the Takeover Code deem control as passing only when the 33% threshold has been breached and only then will there be a MGO for the remaining shares at the prevailing price by the offeror. It is essentially a numerical test, the same as in Britain, Hong Kong and Singapore, but the threshold levels are lower at 30%. The reasons cited is that determination of control is subjective.
The reality is that control in many cases can take place way below this threshold levels depending on the shareholding structure.
The more dispersed the shareholding, the easier to wrest control over the company as in this typical case of Pos.
Given the circumstances, it is important for the regulators to go beyond what is contained in the Takeover Code in certain cases, in assessing whether control has passed, and in assessing whether the rights and privileges of minorities might be compromised.
Pos Malaysia could be one such example?
Rita Benoy Bushon is chief executive officer of Minority Shareholder Watchdog Group.
Pos Malaysia divestment
INVEST Malaysia has come and gone, and still there is no winner in the sale by Khazanah Nasional Bhd of its 32.2% stake in Pos Malaysia Bhd.
Perhaps that is apt, since the interests of minorities are very much in focus here, and the sellers need to carefully assess and address what might ultimately be not in line with the spirit of best practises.
Fact: Pos Malaysia's shareholding is highly fragmented about 23,800 shareholders, and ironically, majority owned by minorities.
We can see this from Pos' shareholding at the end of December, where there were 5,478 shareholders who owned a maximum of 100 shares in the postal company. This body of shareholders amounts to 23% of the total number.
A level higher, there are 8,443 shareholders who own between 100 and 1,000 shares, amounting to 35% of the total number of shareholders. And then there are another 8,531 shareholders who own a maximum of 10,000 shares in the company, also comprising about 35% of the total number of shareholders.
This would mean that 93% or a total of 22,452 retail minority shareholders of Pos Malaysia's may not enjoy the potential premium to the current price of RM3.51 as I write this article.
The rest of the shareholders are institutional funds such as the EPF, Socso and other unit trusts which will not enjoy this premium either.
(In a recent media release, Khazanah said it had shortlisted three and recently two bidders from five with offers ranging from RM3.38 to RM4.62 per share.)
Is this right? Should minorities be excluded from the potential upside on offer if the mandatory general offer (MGO) threshold of 33% is not breached?
This debate would be moot if the new owner is merely strategic. But as StarBiz rightly points out, Khazanah is asking bidders for their business plans for Pos Malaysia and rigorously vetting them. This suggests that the new owner could control the company with the 32.2% stake.
On the other hand, we also understand that Khazanah desires a “responsible exit” from Pos Malaysia as its services will impact all Malaysians thus the morally right thing for the seller to do whether control takes place or otherwise.
But the flipside is the possible exclusion of minorities from the premium potentially on offer that goes to only Khazanah because the sales falls short of the threshold level for an MGO by 0.8% .
Pos' book value per share stands at RM1.54 a share and it was reported initially that three shortlisted candidates were bidding between 2.2 times and 3 times, implying an offer range of RM3.38 to RM4.62 per share.
There are convincing arguments for minorities to be unhappy in such a situation where a new owner “slips in” without their consent or participation.
Firstly, there have been occasions in the past where minorities have not benefited from the exercise (such as Tan Sri Tajudin Ramli's 1994 acquisition of a 32% stake in Malaysia Airlines and Primus Pacific Partners' 2008 acquisition of a 20.2% block in EON Capital Bhd at a 55% premium).
Of course, the sellers might cite the possible upside from the stringent due diligence as a mitigating factor. After all, the reported final two shortlisted each bring their own niche expertise to the table, with one possibly looking to inject a bank via DRB, where, Khazanah the seller owns a substantial portion of it.
And Pos itself has been hard at work transforming itself. In June it announced a strategic alliance with UPS and jointly launched PosLaju International Premium, an international express delivery service serving over 215 countries.
And before that in January, Pos Malaysia and Maybank jointly launched a partnership to provide shared banking services at over 400 Pos Malaysia outlets around the country.
Is there a possible resolution to this? It depends.
Existing rules in the Takeover Code deem control as passing only when the 33% threshold has been breached and only then will there be a MGO for the remaining shares at the prevailing price by the offeror. It is essentially a numerical test, the same as in Britain, Hong Kong and Singapore, but the threshold levels are lower at 30%. The reasons cited is that determination of control is subjective.
The reality is that control in many cases can take place way below this threshold levels depending on the shareholding structure.
The more dispersed the shareholding, the easier to wrest control over the company as in this typical case of Pos.
Given the circumstances, it is important for the regulators to go beyond what is contained in the Takeover Code in certain cases, in assessing whether control has passed, and in assessing whether the rights and privileges of minorities might be compromised.
Pos Malaysia could be one such example?
Rita Benoy Bushon is chief executive officer of Minority Shareholder Watchdog Group.
Billionaire Warren Buffett's Berkshire case highlights need for checks
Wednesday April 6, 2011
Billionaire Warren Buffett's Berkshire case highlights need for checks
Plain Speaking - By Yap Leng Kuen
THE case involving the purchase of shares by David Sokol a former manager ofBerkshire Hathaway Inc in Lubrizol Corp, whose takeover he helped to negotiate, highlights the need for higher governance in large funds.
In his statement following Sokol's resignation, Berkshire chief executive Warren Buffett admitted that Sokol had informed him in a “passing remark'' about his shareholding in Lubrizol but he (Buffett) did not pursue the matter.
“Shortly before I left for Asia on March 19, I learned that Dave first purchased 2,300 shares of Lubrizol on Dec 14, which he then sold on Dec 21.
“Subsequently, on Jan 5, 6 and 7, he bought 96,060 shares pursuant to a 100,000-share order he had placed with a US$104 per share limit price,'' said Buffett in the statement that appeared in the Telegraph last Thursday.
In this photo from May 1, 2010, David Sokol, chairman of Berkshire Hathaway's MidAmerican Energy, NetJets and Johns Manville units, speaks to shareholders at the annual Berkshire Hathaway shareholders meeting, in Omaha, Neb. Sokol, who suddenly resigned this week, said he wanted to start his own investment firm patterned after Warren Buffett's company. - APAccording to the statement, the two men first discussed the idea of buying Lubrizol in mid-January; however, Buffett became interested only after Sokol informed him of a talk with Lubrizol CEO James Hambrik on Jan 25.
Buffett then decided to buy Lubrizol, an engine lubricant maker, for US$9bil, in which Sokol may have made a profit of about US$3mil, according to Buffett's disclosure and data compiled by Bloomberg.
“Though the offer to purchase was entirely my decision, supported by Berkshire's board on March 13, it would not have occurred without Dave's early efforts,'' Buffett wrote in his statement.
Bloomberg reported, quoting an anonymous person, that the US Securities and Exchange Commission was examining if Sokol bought Lubrizol shares on inside information although there were opinions that this was more of a case of misconduct.
Buffett said in his statement that both men did not feel that Sokol's Lubrizol share purchases were in any way unlawful.
Sokol said in a CNBC interview that he didn't think he had done anything wrong.
This photo taken April 30, 2010, shows Todd Raba, left, president and CEO of Berkshire Hathaway subsidiary Johns Manville, as he walks with his boss, investor Warren Buffett, in Omaha, Neb. Raba will become chairman of Johns Manville following the surprise resignation of David Sokol. - AP“I can understand the appearance issue and that's why we made it public in the press release,” Bloomberg reported, quoting Sokol.
“The reality is that I have no control over a deal ever happening,'' he added.
Top managers and supervisors are responsible for the actions of their key staff especially when it comes to sensitive implications like insider trading and conflict of interest.
Reliance on self-discipline may not be sufficient; instead, a system of checks and risk controls need to be put in place for better investor protection.
Similar cases can occur elsewhere and unless exposed, or in this instance, mentioned by Sokol himself, money made on the sidelines is usually quietly pocketed.
The lure of big money can lead to dangerous actions which, if left unchecked, can have overall disastrous consequences such as in the recent US subprime housing crisis.
There are moves to regulate hedge funds in the US and Europe but the industry should not just sit back and wait for the guidelines and rules before taking preventive measures on its own.
Top managers should be carefully screened for the job and their progress subsequently monitored. While too much micro managing is bad, it is inevitable that some form of surveillance has to be in place, especially after what happened in the subprime rout.
Tuesday, 19 April 2011
QL associate Boilermech to raise RM11.5m from ACE listing
QL associate Boilermech to raise RM11.5m from ACE listing
Tags: Boilermerch Holdings Bhd | QL Resources Bhd
Written by Daniel Khoo
Friday, 15 April 2011 11:31
KUALA LUMPUR: Boilermech Holdings Bhd will raise RM11.52 million from its listing on Bursa Malaysia’s ACE Market, which is scheduled for May 5.
The company, an associate of food and agriculture group QL Resources Bhd, is a manufacturer of biomass boilers mainly for the palm oil milling industry.
It also serves other industries such as sugar milling, rubber-based manufacturers, food processing and palm oil refineries. QL will see its stake dilute to 35.03% after the listing.
The IPO will see Boilermech conducting both a public issuance and an offer for sale.
Under the public issuance, Boilermech will issue 34.9 million new shares of 33 sen each worth RM11.52 million, of which 19.25 million shares will be allocated for application by private placement to identified bumiputera investors, eight million shares for the public and 7.65 million shares for application by eligible directors and employees.
The IPO will also see an offer for sale of 13.5 million shares each totalling RM4.46 million by its major shareholders of which nine million shares will be privately placed out to bumiputera investors approved by the Ministry of International Trade and Industry and another 4.5 million shares by private placement to identified investors.
Of the proceeds raised for Boilermech, the company will use RM4 million for business expansion plans, RM2.5 million for repayment of its term loan, RM3.32 million for working capital and RM1.7 million to defray listing expenses.
(From left) OSK Investment Bank director/head of equity capital market Gan Kim Khoon, Boilermech Holdings Bhd chairman Dr Chia Song Kun, OSK Investment Bank director of corporate finance Tan Meng Kim and Leong at the launch of Boilermech’s prospectus yesterday.
“The group also intends to utilise RM500,000 of the proceeds towards intensifying its sales and marketing efforts in palm producing and agricultural-based processing countries in Southeast Asia, the African continent and the Central and South American region,” Boilermech said in a statement yesterday.
Directors who are offering for sale of a part of their stakes include Leong Yew Cheong who will see his stake diluted to 15.69% from 20.83% prior to the listing, as well as Wong Wee Voo, whose stake will be diluted to 10.67% from 14.13%. Chia Lik Khai, who is both a director at QL Green Resources Bhd and an executive director at Boilermech, said the investment which was done by QL just before Boilermech decided to list is synergistic and will see long-term benefits for both companies.
In its prospectus, the company highlights its main risk as the dependence on the palm oil industry, which in a downturn could mean lower palm oil production activities, fewer palm oil mills being built, lack of growth in plantation acreage and shrinking demand for its repairs and maintenance services.
Analysts note that with crude palm oil prices at above RM3,000 per tonne and production costs of RM1,200-RM1,400 per tonne, the outlook for the plantation sector remains buoyant. However, they note that labour and land cost issues could limit the sector’s expansion in Malaysia.
This article appeared in The Edge Financial Daily, April 15, 2011.
Tags: Boilermerch Holdings Bhd | QL Resources Bhd
Written by Daniel Khoo
Friday, 15 April 2011 11:31
KUALA LUMPUR: Boilermech Holdings Bhd will raise RM11.52 million from its listing on Bursa Malaysia’s ACE Market, which is scheduled for May 5.
The company, an associate of food and agriculture group QL Resources Bhd, is a manufacturer of biomass boilers mainly for the palm oil milling industry.
It also serves other industries such as sugar milling, rubber-based manufacturers, food processing and palm oil refineries. QL will see its stake dilute to 35.03% after the listing.
The IPO will see Boilermech conducting both a public issuance and an offer for sale.
Under the public issuance, Boilermech will issue 34.9 million new shares of 33 sen each worth RM11.52 million, of which 19.25 million shares will be allocated for application by private placement to identified bumiputera investors, eight million shares for the public and 7.65 million shares for application by eligible directors and employees.
The IPO will also see an offer for sale of 13.5 million shares each totalling RM4.46 million by its major shareholders of which nine million shares will be privately placed out to bumiputera investors approved by the Ministry of International Trade and Industry and another 4.5 million shares by private placement to identified investors.
Of the proceeds raised for Boilermech, the company will use RM4 million for business expansion plans, RM2.5 million for repayment of its term loan, RM3.32 million for working capital and RM1.7 million to defray listing expenses.
(From left) OSK Investment Bank director/head of equity capital market Gan Kim Khoon, Boilermech Holdings Bhd chairman Dr Chia Song Kun, OSK Investment Bank director of corporate finance Tan Meng Kim and Leong at the launch of Boilermech’s prospectus yesterday.
“The group also intends to utilise RM500,000 of the proceeds towards intensifying its sales and marketing efforts in palm producing and agricultural-based processing countries in Southeast Asia, the African continent and the Central and South American region,” Boilermech said in a statement yesterday.
Directors who are offering for sale of a part of their stakes include Leong Yew Cheong who will see his stake diluted to 15.69% from 20.83% prior to the listing, as well as Wong Wee Voo, whose stake will be diluted to 10.67% from 14.13%. Chia Lik Khai, who is both a director at QL Green Resources Bhd and an executive director at Boilermech, said the investment which was done by QL just before Boilermech decided to list is synergistic and will see long-term benefits for both companies.
In its prospectus, the company highlights its main risk as the dependence on the palm oil industry, which in a downturn could mean lower palm oil production activities, fewer palm oil mills being built, lack of growth in plantation acreage and shrinking demand for its repairs and maintenance services.
Analysts note that with crude palm oil prices at above RM3,000 per tonne and production costs of RM1,200-RM1,400 per tonne, the outlook for the plantation sector remains buoyant. However, they note that labour and land cost issues could limit the sector’s expansion in Malaysia.
This article appeared in The Edge Financial Daily, April 15, 2011.
IOI Corp falls to lowest since Sept last year
IOI Corp falls to lowest since Sept last year
Written by Joseph Chin of theedgemalaysia.com
Monday, 18 April 2011 16:13
KUALA LUMPUR: Shares of IOI Corp fell to a low of RM5.28 in late afternoon trade on Monday, April 18, which was the lowest since Sept 1, 2010.
At 3.50pm, it was down 13 sen to RM5.28 with 8.40 million shares done.
The FBM KLCI rose 5.62 points to 1,527.56. Turnover was 809.16 million shares valued at RM1.07 billion. There were 414 gainers, 266 losers and 272 stocks unchanged.
The most recent development involving IOI was its acquisition of a 49.9% interest in the South Beach project in Singapore through a restructuring exercise.
To recap, recently IOI bought a 33.3% stake in the project from Elad Group Singapore Pte Ltd for S$174 million (RM417 million).
Subsequently, IOI had injected the 33.3% stake into Scottsdale PROPERTIES [] Pte Ltd. Scottsdale Properties now owns 100% of South Beach. IOI then paid S$115 million (RM276 million) for a 49.9% stake in Scottsdale and will advance S$28 million as a shareholder’s loan. The other 50.1% shareholder of South Beach is City Developments Ltd (CDL).
AmResearch said: “In total, we estimate that IOI paid S$317 million (RM761 million) for a 49.9% stake in the South Beach project. Previous reports had speculated that IOI would pay between S$170 million and S$175 million for a 33.3% stake in South Beach."
The research report said IOI and CDL may be required to further contribute equity of S$500million each to redeem existing mezzanine notes of the project, working capital and part-finance the CONSTRUCTION [] of South Beach. IOI’s investment in the South Beach project has so far cost S$817 million (RM2 billion).
“We believe that IOI would be raising funds to finance its investment in South Beach. The group’s net gearing stood at 8% as at end-June 2010. Net debt amounted RM876million while gross cash and short-term investments totalled RM3.9 billion,” AmResearch said.
Written by Joseph Chin of theedgemalaysia.com
Monday, 18 April 2011 16:13
KUALA LUMPUR: Shares of IOI Corp fell to a low of RM5.28 in late afternoon trade on Monday, April 18, which was the lowest since Sept 1, 2010.
At 3.50pm, it was down 13 sen to RM5.28 with 8.40 million shares done.
The FBM KLCI rose 5.62 points to 1,527.56. Turnover was 809.16 million shares valued at RM1.07 billion. There were 414 gainers, 266 losers and 272 stocks unchanged.
The most recent development involving IOI was its acquisition of a 49.9% interest in the South Beach project in Singapore through a restructuring exercise.
To recap, recently IOI bought a 33.3% stake in the project from Elad Group Singapore Pte Ltd for S$174 million (RM417 million).
Subsequently, IOI had injected the 33.3% stake into Scottsdale PROPERTIES [] Pte Ltd. Scottsdale Properties now owns 100% of South Beach. IOI then paid S$115 million (RM276 million) for a 49.9% stake in Scottsdale and will advance S$28 million as a shareholder’s loan. The other 50.1% shareholder of South Beach is City Developments Ltd (CDL).
AmResearch said: “In total, we estimate that IOI paid S$317 million (RM761 million) for a 49.9% stake in the South Beach project. Previous reports had speculated that IOI would pay between S$170 million and S$175 million for a 33.3% stake in South Beach."
The research report said IOI and CDL may be required to further contribute equity of S$500million each to redeem existing mezzanine notes of the project, working capital and part-finance the CONSTRUCTION [] of South Beach. IOI’s investment in the South Beach project has so far cost S$817 million (RM2 billion).
“We believe that IOI would be raising funds to finance its investment in South Beach. The group’s net gearing stood at 8% as at end-June 2010. Net debt amounted RM876million while gross cash and short-term investments totalled RM3.9 billion,” AmResearch said.
BAT Malaysia to double cigarette exports
BAT Malaysia to double cigarette exports
Published: 2011/04/19
British American Tobacco (Malaysia) Bhd, the country’s biggest cigarette-maker, will double exports this year, Managing Director William Toh told reporters in Petaling Jaya, near Kuala Lumpur today.
The Selangor-based company will start sales to Japan and Australasia, Toh said.
Illicit cigarettes remain a threat to operations in the first quarter, he said. - Bloomberg
Read more: BAT Malaysia to double cigarette exports http://www.btimes.com.my/Current_News/BTIMES/articles/20110419143942/Article/index_html#ixzz1JyqKTC1i
Published: 2011/04/19
British American Tobacco (Malaysia) Bhd, the country’s biggest cigarette-maker, will double exports this year, Managing Director William Toh told reporters in Petaling Jaya, near Kuala Lumpur today.
The Selangor-based company will start sales to Japan and Australasia, Toh said.
Illicit cigarettes remain a threat to operations in the first quarter, he said. - Bloomberg
Read more: BAT Malaysia to double cigarette exports http://www.btimes.com.my/Current_News/BTIMES/articles/20110419143942/Article/index_html#ixzz1JyqKTC1i
OSK maintains 'hold' call on Tenaga
OSK maintains 'hold' call on Tenaga
Published: 2011/04/19
Higher coal costs and weak electricity sales in the first half of Tenaga Nasional Bhd''s (TNB) 2011 financial year are likely to weaken the company''s second quarter results to be announced on Thursday.
"Supported by high crude oil prices, coal costs remain persistently high with Newcastle coal at over US$120 per tonne despite a temporary weaker demand due to Japan''s natural calamities," OSK Research said in a research note today.
It expected TNB''s first half electricity sales growth to be weak given that sales for the five-month period from Sept 1, 2010 to Jan 31, 2010 in Peninsular Malaysia grew by only 3.8 per cent year-on-year.
Hence, OSK maintained a hold call on TNB.
"We have downgraded financial year 2011 earnings by 17 per cent to RM2.4 billion due to the raising of our coal assumption by US$10 per tonne to US$110 per tonne in the absence of any off-setting tariff rate increase," OSK Research said.
Currently, the research house said, the greater risk to TNB''s earnings stemmed from the rise in fuel costs and the timing of an electricity tariff hike to offset the higher costs.
Echoing the view that second quarter results would experience a decline, Kenanga Research said further erosions to earnings would eat into TNB''s RM9.2 billion cash pile which is dedicated for several reasons, including repayment of debts and future power plant projects. - BERNAMA
Read more: OSK maintains 'hold' call on Tenaga http://www.btimes.com.my/Current_News/BTIMES/articles/20110419133621/Article/index_html#ixzz1JyomhAv9
Published: 2011/04/19
Higher coal costs and weak electricity sales in the first half of Tenaga Nasional Bhd''s (TNB) 2011 financial year are likely to weaken the company''s second quarter results to be announced on Thursday.
"Supported by high crude oil prices, coal costs remain persistently high with Newcastle coal at over US$120 per tonne despite a temporary weaker demand due to Japan''s natural calamities," OSK Research said in a research note today.
It expected TNB''s first half electricity sales growth to be weak given that sales for the five-month period from Sept 1, 2010 to Jan 31, 2010 in Peninsular Malaysia grew by only 3.8 per cent year-on-year.
Hence, OSK maintained a hold call on TNB.
"We have downgraded financial year 2011 earnings by 17 per cent to RM2.4 billion due to the raising of our coal assumption by US$10 per tonne to US$110 per tonne in the absence of any off-setting tariff rate increase," OSK Research said.
Currently, the research house said, the greater risk to TNB''s earnings stemmed from the rise in fuel costs and the timing of an electricity tariff hike to offset the higher costs.
Echoing the view that second quarter results would experience a decline, Kenanga Research said further erosions to earnings would eat into TNB''s RM9.2 billion cash pile which is dedicated for several reasons, including repayment of debts and future power plant projects. - BERNAMA
Read more: OSK maintains 'hold' call on Tenaga http://www.btimes.com.my/Current_News/BTIMES/articles/20110419133621/Article/index_html#ixzz1JyomhAv9
Malaysian Bulk Carriers sees revenue drop
Malaysian Bulk Carriers sees revenue drop
Published: 2011/04/19
Malaysian Bulk Carriers Bhd (MBC) expects to record a lower revenue this year amid the currently challenging market.
Its chief executive officer, Kuok Khoon Kuan said the shipping industry was very competitive and the company would need to spend more for growth and expansion in order to survive.
"We expect growth in terms of asset size, which we have already started last year," he told reporters after the company's annual general meeting here today, adding that the company planned to acquire more ships this year as well as rebuild its fleet.
While he did not disclose the budget for their expansion, he said the company would not miss out on a good buy.
"It is a matter of opportunity. You see a good ship, with a good price, you go in," he added.
For the financial year ended Dec 31, 2010, MBC's revenue grew 33 per cent to RM404.3 million from RM303.7 million in 2009.
The better performance was attributed to a firmer dry bulk market and increased hire days. - BERNAMA
Read more: Malaysian Bulk Carriers sees revenue drop http://www.btimes.com.my/Current_News/BTIMES/articles/20110419151950/Article/index_html#ixzz1JynYR3XO
Published: 2011/04/19
Malaysian Bulk Carriers Bhd (MBC) expects to record a lower revenue this year amid the currently challenging market.
Its chief executive officer, Kuok Khoon Kuan said the shipping industry was very competitive and the company would need to spend more for growth and expansion in order to survive.
"We expect growth in terms of asset size, which we have already started last year," he told reporters after the company's annual general meeting here today, adding that the company planned to acquire more ships this year as well as rebuild its fleet.
While he did not disclose the budget for their expansion, he said the company would not miss out on a good buy.
"It is a matter of opportunity. You see a good ship, with a good price, you go in," he added.
For the financial year ended Dec 31, 2010, MBC's revenue grew 33 per cent to RM404.3 million from RM303.7 million in 2009.
The better performance was attributed to a firmer dry bulk market and increased hire days. - BERNAMA
Read more: Malaysian Bulk Carriers sees revenue drop http://www.btimes.com.my/Current_News/BTIMES/articles/20110419151950/Article/index_html#ixzz1JynYR3XO
Public Bank Q1 net profit rises 21pc
Public Bank Q1 net profit rises 21pc
By Zurinna Raja Adam
Published: 2011/04/19
Public Bank recorded RM828 million in net profit for the first quarter against RM685 million during the same period last year.
Kuala Lumpur: Public Bank Bhd (1295), the country's third largest lender, saw its first-quarter net profit rise by 21 per cent and hopes to continue its "satisfactory" performance for the rest of 2011.
Despite a slowdown in global economy, Public Bank said, the domestic operating environment remained buoyant, due to sustainable domestic demand, with the expectation of between 5 and 6 per cent growth in the economy this year.
Public Bank recorded RM828 million in net profit for the first quarter against RM685 million during the same period last year.
Chairman Tan Sri Teh Hong Piow said the banking group's lending activities remained focused on the retail sector, which accounted for 85 per cent of the group's total loan portfolio.
"This comprises loans to mid-market commercial enterprises as well as loans for the financing of residential properties and the purchase of passenger vehicles," Teh said in a statement yesterday.
On its overseas expansion, he said the group will remain focused on its Hong Kong and Cambodian operations, with plans to open three new branches in Hong Kong and six new branches in Cambodia by the end of this year.
Public Bank's domestic loan base grew by 3.6 per cent during the quarter compared to the domestic banking industry's loan growth of 1.7 per cent in the first two months of 2011.
Its domestic market share of loans and advances stood at 16.2 per cent as at end of February this year.
Public Bank attributed its strong growth in net interest and finance income, which grew 10 per cent during the quarter, on the back of strong organic growth and core customers deposits.
For the first quarter of 2011, Public Bank's domestic retail loan approvals increased by 10 per cent, with housing loan approvals growing at a higher 17 per cent.
The bank approved a total of RM3 billion of loans to domestic small and medium enterprises, 11 per cent higher than the corresponding quarter in 2010.
Public Mutual Bhd, the group's wholly-owned unit trust fund management subsidiary, continued to be the clear market leader in the private unit trust industry, with an overall market share of 45 per cent.
As at end-March 2011, Public Mutual's net assets under management stood at RM42.4 billion, or 16 per cent higher, compared with RM36.6 billion a year ago.
Yesterday, Public Bank's share price closed 2 sen higher to RM13.06.
Read more: Public Bank Q1 net profit rises 21pc http://www.btimes.com.my/Current_News/BTIMES/articles/publcof/Article/index_html#ixzz1JylptVzl
By Zurinna Raja Adam
Published: 2011/04/19
Public Bank recorded RM828 million in net profit for the first quarter against RM685 million during the same period last year.
Kuala Lumpur: Public Bank Bhd (1295), the country's third largest lender, saw its first-quarter net profit rise by 21 per cent and hopes to continue its "satisfactory" performance for the rest of 2011.
Despite a slowdown in global economy, Public Bank said, the domestic operating environment remained buoyant, due to sustainable domestic demand, with the expectation of between 5 and 6 per cent growth in the economy this year.
Public Bank recorded RM828 million in net profit for the first quarter against RM685 million during the same period last year.
Chairman Tan Sri Teh Hong Piow said the banking group's lending activities remained focused on the retail sector, which accounted for 85 per cent of the group's total loan portfolio.
"This comprises loans to mid-market commercial enterprises as well as loans for the financing of residential properties and the purchase of passenger vehicles," Teh said in a statement yesterday.
On its overseas expansion, he said the group will remain focused on its Hong Kong and Cambodian operations, with plans to open three new branches in Hong Kong and six new branches in Cambodia by the end of this year.
Public Bank's domestic loan base grew by 3.6 per cent during the quarter compared to the domestic banking industry's loan growth of 1.7 per cent in the first two months of 2011.
Its domestic market share of loans and advances stood at 16.2 per cent as at end of February this year.
Public Bank attributed its strong growth in net interest and finance income, which grew 10 per cent during the quarter, on the back of strong organic growth and core customers deposits.
For the first quarter of 2011, Public Bank's domestic retail loan approvals increased by 10 per cent, with housing loan approvals growing at a higher 17 per cent.
The bank approved a total of RM3 billion of loans to domestic small and medium enterprises, 11 per cent higher than the corresponding quarter in 2010.
Public Mutual Bhd, the group's wholly-owned unit trust fund management subsidiary, continued to be the clear market leader in the private unit trust industry, with an overall market share of 45 per cent.
As at end-March 2011, Public Mutual's net assets under management stood at RM42.4 billion, or 16 per cent higher, compared with RM36.6 billion a year ago.
Yesterday, Public Bank's share price closed 2 sen higher to RM13.06.
Read more: Public Bank Q1 net profit rises 21pc http://www.btimes.com.my/Current_News/BTIMES/articles/publcof/Article/index_html#ixzz1JylptVzl
Padini share placement to raise RM183m
Padini share placement to raise RM183m
Published: 2011/04/19
Malaysia’s Puncak Bestari Sdn Bhd will raise as much as RM183 million from the placement of shares in fashion retailer Padini Holdings Bhd , according to a term sheet obtained by Reuters on today.
Puncak is offering 179.3 million Padini shares at RM1.02 per share, a discount of 3.9 per cent to its closing price yesterday, the term sheet showed.
The placement exercise, representing about 27 per cent of Padini’s existing share capital, is jointly managed by CIMB and Maybank.
The placement price values the company at about 8.4 times price-to-2011 earnings against the 11.4 times average for its peers AEON and FJ Benjamin. - Reuters
Read more: Padini share placement to raise RM183m http://www.btimes.com.my/Current_News/BTIMES/articles/20110419094957/Article/index_html#ixzz1Jykt9bd0
Published: 2011/04/19
Malaysia’s Puncak Bestari Sdn Bhd will raise as much as RM183 million from the placement of shares in fashion retailer Padini Holdings Bhd , according to a term sheet obtained by Reuters on today.
Puncak is offering 179.3 million Padini shares at RM1.02 per share, a discount of 3.9 per cent to its closing price yesterday, the term sheet showed.
The placement exercise, representing about 27 per cent of Padini’s existing share capital, is jointly managed by CIMB and Maybank.
The placement price values the company at about 8.4 times price-to-2011 earnings against the 11.4 times average for its peers AEON and FJ Benjamin. - Reuters
Read more: Padini share placement to raise RM183m http://www.btimes.com.my/Current_News/BTIMES/articles/20110419094957/Article/index_html#ixzz1Jykt9bd0
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