KUALA LUMPUR: CI Holdings Bhd (CIH) is on the prowl for new businesses, following the completion of the sale of its entire equity interest in food and beverage arm Permanis Sdn Bhd to Japanese Asahi Group Holdings Ltd for RM820 million last year.
The Main Market-listed company is in talks with many parties for potential business ventures, but will not rush in or limit itself to specific sectors, said managing director Datuk Johari Abdul Ghani.
“We are looking at all possible businesses,” he told reporters after an EGM here yesterday.
“Basically, we don’t limit ourselves to any industry except that we are not interested in oil and gas, and property as I don’t have experience in these two sectors.”
One of the main criteria for possible business ventures is that CIH is more interested in companies it can have full control of so it can execute its
business plans smoothly, Johari said.
“But nothing is concrete yet. That is the reason why I decided to give back the 50 sen to shareholders because I don’t think we should keep that much cash in the company,” he said.
“And as when we identify a business, and we need more capital, we will talk to shareholders and try to get the capital from them if the business we intend to acquire requires sizeable capital,” he said.
Shareholders yesterday approved CIH’s proposed capital repayment of RM71 million on the basis of 50 sen for each share held via a reduction of the issued and paid-up share capital.
In total, the company is paying some RM724.2 million or RM5.10 via a special dividend and capital repayment following its disposal of Permanis to Asahi for RM820 million. As at Sept 30, 2011, CIH had RM11.35 million net cash.
The disposal of Permanis left the company with tap and sanitary ware businesses. Johari said CIH is also looking at potential business acquisitions that can expand the tap and sanitary ware businesses further.
CIH’s net profit for 1QFY12 ended Sept 30 fell 33% to RM7.34 million from RM11.67 million a year earlier.
The company’s revenue for the quarter in review was RM9.08 million, compared with RM10.98 million a year earlier. Earnings per share stood at 5.17 sen against 8.22 sen a year ago.
Decreases in revenue and profit were mainly due to the delayed completion of various projects, attributable to factors such as softening demand due to uncertainty in global economic conditions and Bank Negara Malaysia’s revision of property loan regulations to curb speculation.
“High and increasing cost also caused developers and distributors to exercise caution,” the company said in notes accompanying an announcement to Bursa Malaysia.
This article appeared in The Edge Financial Daily, January 19, 2012.
The Main Market-listed company is in talks with many parties for potential business ventures, but will not rush in or limit itself to specific sectors, said managing director Datuk Johari Abdul Ghani.
“We are looking at all possible businesses,” he told reporters after an EGM here yesterday.
“Basically, we don’t limit ourselves to any industry except that we are not interested in oil and gas, and property as I don’t have experience in these two sectors.”
One of the main criteria for possible business ventures is that CIH is more interested in companies it can have full control of so it can execute its
business plans smoothly, Johari said.
“But nothing is concrete yet. That is the reason why I decided to give back the 50 sen to shareholders because I don’t think we should keep that much cash in the company,” he said.
“And as when we identify a business, and we need more capital, we will talk to shareholders and try to get the capital from them if the business we intend to acquire requires sizeable capital,” he said.
Shareholders yesterday approved CIH’s proposed capital repayment of RM71 million on the basis of 50 sen for each share held via a reduction of the issued and paid-up share capital.
In total, the company is paying some RM724.2 million or RM5.10 via a special dividend and capital repayment following its disposal of Permanis to Asahi for RM820 million. As at Sept 30, 2011, CIH had RM11.35 million net cash.
The disposal of Permanis left the company with tap and sanitary ware businesses. Johari said CIH is also looking at potential business acquisitions that can expand the tap and sanitary ware businesses further.
CIH’s net profit for 1QFY12 ended Sept 30 fell 33% to RM7.34 million from RM11.67 million a year earlier.
The company’s revenue for the quarter in review was RM9.08 million, compared with RM10.98 million a year earlier. Earnings per share stood at 5.17 sen against 8.22 sen a year ago.
Decreases in revenue and profit were mainly due to the delayed completion of various projects, attributable to factors such as softening demand due to uncertainty in global economic conditions and Bank Negara Malaysia’s revision of property loan regulations to curb speculation.
“High and increasing cost also caused developers and distributors to exercise caution,” the company said in notes accompanying an announcement to Bursa Malaysia.
This article appeared in The Edge Financial Daily, January 19, 2012.
