KUALA LUMPUR: Guper Logistics Sdn Bhd is set to become a wholly owned subsidiary of Complete Logistics Services Bhd (CLS) if the proposed acquisition by CLS is approved.
In its proposal to Bursa Malaysia, CLS plans to acquire 1.2 million ordinary shares in Guper, or 40% equity interest, from Banjaran Unggul Sdn Bhd (BUSB), an investment holding company. CLS currently owns 1.8 million shares in Guper.
“The purchase consideration for the proposed acquisition of RM13.6 million was arrived at after taking into consideration the expected potential net profit contribution from Guper for FY12 ending March 31 of about RM6.8 million and at a price-earnings ratio (PER) of five,” CLS said in its statement to Bursa.
CLS also expects the proposed acquisition to enhance its profitability through Guper’s land-based logistics services, which include haulage, forwarding and warehousing. The group also owns and operates the Nilai Inland Port.
According to CLS, Guper contributed RM25.7 million (28.1%) to its consolidated revenue for FY11 ended March 31. Out of CLS’s net profit attributable to ordinary shareholders, Guper contributed RM2.9 million, or 74.4%.
The purchase consideration will cost CLS RM13.6 million, which the group said in its announcement it will satisfy in cash, through internally-generated funds and borrowings, if required. CLS also said that because Guper’s business is already “onstream”, the proposed acquisition is not expected to give rise to any additional financial commitment from CLS besides satisfying the consideration.
CLS recently made another purchase from BUSB. On Oct 11, CLS announced that it had entered into a share sale agreement with BUSB for a 65% stake in Ecocentre Sdn Bhd. This represents 65,000 ordinary shares and had a total cash consideration of RM242,000. Ecocentre’s business primarily involves processing and trading recycled products, trading of tyres, lubricants and related products, and provision of tyre maintenance services.
CLS closed last Friday at 34 sen with 5,000 shares traded. This was a 2.7% dip from its closing price of 35 sen on Nov 1.
This article appeared in The Edge Financial Daily, November 9, 2011.
In its proposal to Bursa Malaysia, CLS plans to acquire 1.2 million ordinary shares in Guper, or 40% equity interest, from Banjaran Unggul Sdn Bhd (BUSB), an investment holding company. CLS currently owns 1.8 million shares in Guper.
“The purchase consideration for the proposed acquisition of RM13.6 million was arrived at after taking into consideration the expected potential net profit contribution from Guper for FY12 ending March 31 of about RM6.8 million and at a price-earnings ratio (PER) of five,” CLS said in its statement to Bursa.
CLS also expects the proposed acquisition to enhance its profitability through Guper’s land-based logistics services, which include haulage, forwarding and warehousing. The group also owns and operates the Nilai Inland Port.
According to CLS, Guper contributed RM25.7 million (28.1%) to its consolidated revenue for FY11 ended March 31. Out of CLS’s net profit attributable to ordinary shareholders, Guper contributed RM2.9 million, or 74.4%.
The purchase consideration will cost CLS RM13.6 million, which the group said in its announcement it will satisfy in cash, through internally-generated funds and borrowings, if required. CLS also said that because Guper’s business is already “onstream”, the proposed acquisition is not expected to give rise to any additional financial commitment from CLS besides satisfying the consideration.
CLS recently made another purchase from BUSB. On Oct 11, CLS announced that it had entered into a share sale agreement with BUSB for a 65% stake in Ecocentre Sdn Bhd. This represents 65,000 ordinary shares and had a total cash consideration of RM242,000. Ecocentre’s business primarily involves processing and trading recycled products, trading of tyres, lubricants and related products, and provision of tyre maintenance services.
CLS closed last Friday at 34 sen with 5,000 shares traded. This was a 2.7% dip from its closing price of 35 sen on Nov 1.
This article appeared in The Edge Financial Daily, November 9, 2011.
