Complete Logistics sees 29.1% stake crossed off-market

KUALA LUMPUR (March 30): COMPLETE LOGISTIC SERVICES BHD []’s 29.1% stake was traded in an off-market deal on Friday at an average price of 35 sen.

Stocks market data showed the stake comprises of 35 million shares, based on the paid-up of 120 million shares.

At 35 sen, this was six sen below its Thursday’s closing price of 41 sen.

The shares were untraded as at 4pm at 41 sen.



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Market Commentary

The FBM KLCI index gained 9.18 points or 0.62% on Wednesday. The Finance Index increased 0.19% to 13282.17 points, the Properties Index up 0.90% to 959.54 points and the Plantation Index rose 0.37% to 7586.04 points. The market traded within a range of 9.53 points between an intra-day high of 1490.74 and a low of 1481.21 during the session.

Actively traded stocks include HIBISCS-WA, TEJARI, ASUPREM, DATAPRP, EMICO, HIBISCS, COMPUGT, GPRO, JCY and JCY-CD. Trading volume increased to 2677.72 mil shares worth RM1818.10 mil as compared to Tuesday’s 1812.89 mil shares worth RM1538.64 mil.

Leading Movers were AXIATA (+13 sen to RM4.96), SIME (+12 sen to RM8.92), GENTING (+14 sen to RM11.00), PETCHEM (+7 sen to RM6.48) and CIMB (+4 sen to RM7.36). Lagging Movers were KLK (-6 sen to RM21.14), GENM (-1 sen to RM3.86), AMMB (-1 sen to RM5.83), UMW (-2 sen to RM6.85) and HLFG (-2 sen to RM11.88). Market breadth was positive with 562 gainers as compared to 222 losers.-- JF Apex Securities Bhd

Complete Logistics plans to fully acquire Guper

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.

Stocks to watch: Hartalega, Sanichi, Cypark, GuocoLand

KUALA LUMPUR (Nov 8): Stocks which could see trading interest on Wednesday, Oct 9 include Harlatega Holdings Bhd, SANICHI TECHNOLOGY [] BHD [], CYPARK RESOURCES BHD [] and GUOCOLAND (MALAYSIA) BHD [] (GLM).

Harlatega reported its earnings fell 2% to RM46.13 million in the second quarter ended Sept 30, 2011 from RM47.01 million a year ago as it was impacted by high raw material prices.

However, it is cautious about the outlook following the sharp increase in nitrile material price and recent high volatility of US dollar.

Its revenue rose 24.5% to RM229.54 million from RM184.31 million. At the profit before tax level, it dipped 2.4% to RM59.55 million from RM61.02 million. Earnings per share were 12.68 sen compared with 12.96 sen. It declared an interim dividend of 6.0 sen per share.

Sanichi resumes trading on Wednesday after it announced that German-based Projektarbelt Technische Beratung Venretung International (Protev) has completed its first phase of due diligence of the company and the second phase in early 2012.

However, as there were no significant updates, interest could decline in the company. The company was earlier queried by Bursa Malaysia Securities over the unusual market activity in the trading of its shares.

In Cypark, executive vice chairman Siow Kwang Khee disposed of 3.97 million shares on Nov 3.

Following the disposal of the shares, his direct stake was reduced to 10.50 million shares or 7.24%.

GuocoLand has proposed to acquire PJ City Development Sdn Bhd for a cash consideration of RM29.78 million from GuoLine Asset Sdn Bhd.

PJ City’s core business is property development and property investment activities. Based on its audited financial statements for FY ended June 30, 2011, PJ City recorded profit after tax of RM4.75 million while its net assets were RM38.61 million.

PJ City also owns two parcels of land in Section 32 in Petaling, Selangor. GLM said after the completion of the proposed acquisition, it intends to develop commercial office buildings and corporate factories on the land.

COMPLETE LOGISTIC SERVICES BHD [] (CLSB) has proposed to acquire the remaining 40% stake in its subsidiary Guper Integrated Logistics Sdn Bhd for RM13.60 million cash.

Complete Logistic to buy remaining Guper stake for RM13.6m

KUALA LUMPUR (Nov 8): COMPLETE LOGISTIC SERVICES BHD [] (CLSB) has proposed to acquire the remaining 40% stake in its subsidiary Guper Integrated Logistics Sdn Bhd for RM13.60 million cash.

CLSB said on Tuesday, it would acquire 1.20 million Guper shares from the vendors RM13.60 million cash through internally-generated funds and/or borrowings, if required.

At present Guper is a 60.0%-owned subsidiary and upon completion of the proposed acquisition, Guper will be a unit of CLSB.

“As the business of Guper is already on-stream, the Proposed Acquisition is not expected to give rise to any additional financial commitment from CLSB other than the consideration to be satisfied through borrowings, if any,” it said.