Jotech gets shareholders’ nod for merger with AIC, AutoV

KUALA LUMPUR (March 20): JOTECH HOLDINGS BHD [] has received shareholders’ approval for the proposed merger with AIC CORPORATION BHD [] and AutoV Corporation Bhd.

Jotech, which makes precision stamped parts, said on Tuesday the approval was given at the EGM and court convened meetings on Tuesday.

All three companies would be collectively be acquired by a special purpose vehicle -- Temasek Formation Bhd (TFB) – which is owned by executive chairman of Jotech and AIC, Datuk Goh Tian Chuan.

To recap, TFB had received the Securities Commission’s approval in January 2012 for the proposed merger for RM711 million to be satisfied via the issuance of new TFB shares.

TFB would acquire Jotech at 18 sen per share, or 20% above the respective five-day volume weighted average market prices (VWAMP) of Jotech shares up to and including the price at July 26, 02011 of 15 sen.

The offer of 9.0 sen for each Jotech warrant was 17% over the respective five-day VWAMP of Jotech warrants up to and including the price at July 26, 2011 of 7.7 sen.

Jotech said the proposed swap ratio would be on the basis of three new TFB shares for every two existing Jotech shares. As for the warrants holders, the proposed swap ratio will be three new TFB shares for every four existing Jotech warrants.

Commenting on the latest development, Goh said the proposed merger would beef up Jotech both financially and market size to fully implement its business plan strategies.

“The proposed merged entity would be able to complement its counterpart’s strengths to achieve better business synergies going forward and further solidify its leading position in the industry,” he said.

The EGMs for AIC and AutoV would be held on March 21, and March 22.



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Stocks to watch: MAHB, Public Bank, MPI, Axiata

KUALA LUMPUR (Jan 31): Stocks on Bursa Malaysia could trade on a cautious note on Tuesday following investors’ disappointment over the absence of a Greek debt deal, though the broader market was firmer with interest in lower liners.

Reuters reported that dampened optimism about the global economic picture and the Greek crisis pushed the euro off six-week highs and sent world stocks lower on Monday with investors cautious ahead of an EU leaders’ summit.

EU leaders will sign off on a permanent rescue fund for the euro zone at a summit on later on Monday and are expected to agree on a balanced budget rule in national legislation, with unresolved problems in Greece casting a shadow on the discussions.

As for Bursa Malaysia, the FBM KLCI fell 7.33 points to close at 1,513.55, weighed by losses including at Genting, Hong Leong Bank and HLFG. However, gainers led losers by 460 to 387, while 310 counters traded unchanged. Volume was 2.31 billion shares valued at RM1.84 billion.

Among the companies which could see trading interest are Malaysia Airports Holdings Bhd (MAHB), PUBLIC BANK BHD [], MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI) and Axiata Group Bhd.

Other stocks of interest would be Perusahaan Sadur Timah Malaysia (Perstima) Bhd, D’nonce TECHNOLOGY [] Bhd and also JOTECH HOLDINGS BHD [], and AIC CORPORATION BHD [] and AutoV Corporation Bhd.

MAHB plans to raise RM598.40 million from a proposed share placement exercise to finance the new low cost carrier terminal at Kuala Lumpur International Airport (klia2).

The airports operator said it planned to issue 110 million new shares, or 10% of its issued and paid-up share capital to investors to be identified via a book building exercise.

Based on a 5% discount to the five-day volume weighted average market price (VWAMP) of MAHB shares up to and including Jan 27, of RM5.7298, the indicative issue price for the placement shares would be RM5.44.

Public Bank Bhd recorded net profit of RM876.98 million in the fourth quarter ended Dec 31, 2011, up 3.6% from a year ago due to higher net interest and net income from Islamic banking business. It declared a second interim single-tier dividend of 28 sen per share.

Its revenue rose 11.8% to RM3.32 billion from RM2.97 billion a year ago. Its earnings per share were 25.04 sen compared with 24.16 sen.

For the 4Q ended Dec 31, 2011, the group registered a pre-tax profit of RM1.163 billion, an increase of RM33.0 million or 2.9% as compared to the previous corresponding quarter. The improved performance was mainly due to higher net interest and net income from Islamic banking business.

MPI posted net loss RM16.21 million in the second quarter ended Dec 31, 2011 compared to net profit RM25.29 million a year earlier, due mainly to weaker demand and lower revenue.

Its revenue for the quarter fell 24.04% to RM279.23 million from RM367.59 million in 2010. Loss per share was 8.37 sen compared to earnings per share of 13.05 sen, while net assets per share were RM3.77.

Axiata Group Bhd has received another two-year extension from the Securities Commission (SC) to get the local authorities’ approval for its outdoor structures.

The SC had given it until Jan 29, 2014 to get the approvals for the outdoor structures, which were part of the conditions for its listing on Bursa Malaysia.

As at Dec 19, 2011, Axiata said 22 outdoor structures were pending approval from local authorities. Applications for 27 outdoor structures have been declined, and the Celcom Group is in the midst of appealing to the relevant local authorities.

Perstima’s net profit for the third quarter ended Dec 31, 2011 fell 42.95% to RM7.99 million from RM14.01 million a year ago, due mainly to lower sales volume coupled with lower profit margin. Its revenue for the quarter slipped 9.4% to RM204.26 million from RM225.47 million in 2010.

D’nonce Technology Bhd posted net loss of RM6.11 million in the first quarter ended Nov 30, 2011 compared with a net profit of RM498,000 a year ago due to the impact of the severe flooding in Thailand last year.

Its factories in Bangkok were inundated by the flood waters which damaged its property, plant and equipment and inventories in early October 2011. As to date, its factories in Bangkok have yet to commence operations.

Datuk Goh Tian Chuan’s special purpose vehicle Temasek Formation Bhd (TFB) has received the Securities Commission’s approval to merge Jotech Holdings Bhd, and AIC Corporation Bhd and AutoV Corporation Bhd.

The proposed merger of the three companies for a total consideration of about RM696 million would be satisfied via the issuance of new Temasek Formation shares.



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Goh Tian Chuan gets nod to merge Jotech, AIC and AutoV

KUALA LUMPUR (Jan 30): Datuk Goh Tian Chuan’s special purpose vehicle Temasek Formation Bhd (TFB) has received the Securities Commission’s approval to merge JOTECH HOLDINGS BHD [], and AIC CORPORATION BHD [] and AutoV Corporation Bhd.

The proposed merger of the three companies for a total consideration of about RM696 million would be satisfied via the issuance of new Temasek Formation shares.

Goh, who is the group executive chairman of Jotech and AIC, described the SC approval as “an important milestone for the three PLCs and will leverage the groups plans to achieve greater heights”.

When completed, the merger would create a larger group in terms of market capitalisation, streamline the multi-tiered shareholding structure and unlock potential intrinsic values.

“The full value of the business potential of Jotech, AIC and AutoV is expected to be accurately reflected at TFB level,” he said.

The merger offers comprise an offer of 18 sen for each Jotech share, RM1.80 for each AIC share and RM2.38 for each AutoV share, representing a premium of 20% over the respective five-day volume weighted average market prices (VWAMP) of Jotech, AIC and AutoV shares up to and including July 26, 2011 of 15 sen, RM1.50 and RM1.98 respectively.

The offers of 9.0 sen for each Jotech warrant and RM1 for each AIC warrant was a premium of 17% over the respective five-day VWAMP of Jotech and AIC warrants up to July 26, 2011 of 7.7 sen and 85.2 sen respectively.

The proposed swap ratios are three new TFB shares for every two existing Jotech shares; 15 new TFB shares for every one existing AIC share and 119 new TFB shares for every six AutoV shares.

As for the warrants holders, the proposed swap ratios would be three new TFB shares for every four existing Jotech warrants and 25 new TFB shares for every three existing AIC warrants.



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KL stocks easier in early trade

Share prices on Bursa Malaysia were traded lower in the early session Friday on profit-taking in the plantation, palm oil and finance counters, dealers said.

After 10 minutes of trading, the underlying FBM KLCI lost 1.15 points to 1,522.71 after opening 0.01 of a point higher at 1,523.87.

The HwangDBS Vickers Research said the benchmark FBM KLCI would probably tread in a tight band with a marginal downward bias.

"The immediate support line for the bellwether currently stands at 1,515," it said in a research note today.

The research house said while the broad market performance was expected to be sluggish, there could be excitement in individual stocks such as IJM Corp and Ahmad Zaki Resources Bhd amid media reports that they have been awarded construction packages worth RM1.7 billion for the Mass Rapid Transit project.

Kumpulan Europlus' shares are also expected to rise after securing government approval to undertake the RM7.1 billion West Coast Expressway project. The concession is for 60 years.

Market sentiments were broadly higher, with gainers outpacing losers 137 to 77, with 140 counters unchanged, 1,120 untraded and 26 suspended.

Turnover stood at 152.07 million shares worth RM80.17 million.
The Finance Index dwindled 10.74 points to 13,485.87, the Plantation Index lost 13.58 points to 8,713.63, and the Industrial Index fell 5.09 points to 2,787.61.

However, the FBM Emas gained 7.12 points to 10,581.73, the FBM Mid 70 surged 65.69 points to 12,127.71 and the FBM Ace rose 10.52 points to 4,460.92.

Among the volume leaders, The Media Shoppe earned half a sen to 12 sen, Karyon Industries added 1.5 sen to 5.5 sen, while Jotech Holdings eased half sen to 15 sen.

Among the heavyweights, Maybank gained four sen to RM8.26, Sime Darby stood unchanged at RM9.08, while Petronas Chemicals lost one sen to RM6.66. -- Bernama



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KL shares wring gains in early trade

Share prices on Bursa Malaysia opened marginally higher in early trading today, recovering from yesterday's losses in tandem with the rebound in US stocks and easing debt crisis fears in Europe, dealers said.

As at 9.15am, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 2.34 points to 1,474.99 after opening 1.97 points higher at 1,474.62.

The Finance Index, however lost 1.189 points to 13,182.28, the Plantation Index rose 40.09 points to 7,527.01 and the Industrial Index shed 4.95 points to 2,691.10.

The FBM Emas Index rose 19.88 points to 10,063.30, the FBM Mid 70 Index added 18.38 points to 10,821.78 and the FBM ACE Index advanced 18.28 points to 4,278.75.

Gainers beat losers 216 to 40, 143 counters unchanged, 1,085 untraded and 24 suspended. Turnover stood at 261.6 million shares worth RM84.9 million.

Newly-listed iDimension Consolidated Bhd, which made its debut on the ACE Market today, gained 4.5 sen to 42.5 sen after opening at 48 sen, 10 sen above its 38 sen issue price with 2.8 million units traded.

Other active counters, Compugates Holdings was unchanged at eight sen, Jotech Holdings warrants earned one sen to seven sen and JCY International increased two sen to 71.5 sen.

Heavyweights, Maybank was unchanged at RM8.24, CIMB rose three sen to RM7.29, Sime Darby slipped three sen to RM8.83 and Petronas Chemicals gained one sen to RM6.40. -- Bernama

Stocks to watch: MBSB, Ireka, Maybank, Chin Teck, Jerneh Asia

KUALA LUMPUR (Oct 31): The string of positive corporate news is expected to underpin market sentiment on Tuesday, Nov 1 after the FBM KLCI ended October on a strong note.

However, the overnight fall on Wall Street could rein in some of the buying appetite and investors use this opportunity to take profit. Wall Street closed its best month in 20 years on a down note on Monday as the failure of trading firm MF Global Holdings Ltd and new worries about Europe's debt crisis hammered financial shares.

The Dow Jones industrial average dropped 276.10 points, or 2.26 percent, to 11,955.01. The Standard & Poor's 500 Index fell 31.79 points, or 2.47 percent, to 1,253.30. The Nasdaq Composite Index lost 52.74 points, or 1.93 percent, to 2,684.41.

Among the stocks to watch are MALAYSIA BUILDING SOCIETY BHD [] (MBSB), IREKA CORPORATION BHD [], CHIN TECK PLANTATION []S BHD [], MALAYAN BANKING BHD [], JERNEH ASIA BHD [] and AutoV Corporation Bhd

MBSB posted a 134% increase in its earnings to RM95.08 million for the third quarter ended Sept 30, 2011 from RM40.51 million a year ago.

Its revenue increased by 72% to RM372.67 million from RM215.77 million while earnings per share were 10.88 sen compared with 5.79 sen.

Ireka’s unit has secured a RM85.14 million contract for the proposed City International Hospital project in Ho Chi Minh City, Vietnam from Hoa Lam-Shangri-La 1 Ltd Liability Company.

Chin Teck Plantations Bhd’s earnings surged 90.8% to RM21.84 million in the fourth quarter ended Aug 31, 2011 from RM11.45 million a year ago, boosted by the increase in average selling prices of fresh fruit bunches (FFB), crude palm (CPO) and palm kernel despite lower production.

Its revenue rose 31.4% to RM38.37 million from RM29.20 million a year ago while earnings per share were 23.91 sen compared with 12.53 sen.

For the financial year ended Aug 31, its earnings rose 62.1% to RM76.01 million from RM46.88 million. Revenue rose at a slower pace of 28.6% to RM143.34 million from RM111.44 million.

Malayan Banking Bhd’s PT Bank Internasional Indonesia Tbk (BII) reported consolidated net profit of Rp555 billion (RM193.04 million) for the January-September period, up 34% from Rp415 billion a year ago.

BII said “the increase was achieved on the back of solid growth across the Bank’s core businesses as well as from its overall operational improvements”.

It recorded a 22% consolidated loan growth from Rp50.8 trillion in September 2010 to Rp61.9 trillion in September 2011, underpinned by small and medium enterprises (SME) and commercial loans.

Jerneh Asia Bhd has received a notice of voluntary conditional take-over offer from Kuok Brothers Sdn Bhd to acquire the remaining 58.19% stake which it does not own for cash consideration of RM1.45 per share and 45 sen per warrant.

Kuok Brothers and the parties acting in concert directly hold 102.02 million shares or 41.81% of Jerneh Asia.

At RM1.45, this is nine sen above Monday’s close of RM1.36 while the warrants ended at 40 sen.

Automotive components manufacturer AutoV Corporation expects its turnover to increase by 60% next year with the acquisition of Proreka (M) Sdn Bhd.

Bernama reported executive chairman Bernard Kong as saying the company was also in the midst of merging with two other listed companies to form a bigger group. “Financially we will be much stronger to support our businesses. We also can support our clients better," he said.

Kong said the merger with AIC CORPORATION BHD [] and Jotech Holdings, expected to be completed "sometime in March next year", would transform the company into an integrated manufacturing group dealing in automotive as well as electronics products.