West River Capital rejects TSM Global’s request for better offer

KUALA LUMPUR (March 13): West River Capital Sdn Bhd (WRC) has rejected TSM GLOBAL BHD []’s request for better offer terms including the price and this has seen the latter resolving to consider other offers.

TSM said on Tuesday that WRC’s offer price would remain at RM1.25 per share. However, WRC had agreed to extend the acceptance deadline for the offer from Tuesday to April 6.

“The board has also resolved to consider any other credible offers for the business and undertaking, including all assets and liabilities of TSM received by 5pm on Monday, April 2, 2012,” it said.

To recap, several parties owning a 28.07% stake in TSM Global had on Feb 28, offered to acquire all the business, including assets and liabilities, for RM159.24 million or RM1.25 per share.

WRC is a special purpose vehicle in which TSM directors Datuk Lim Kheng Yew and Lim Tze Thean own 60:40 of West River.

The RM159.24 million would be RM1.25 cash per TSM share held by the remaining entitled shareholders and a deferred amount of RM1.25 per TSM share for all the shares held by identified parties as an amount remaining due and owing by the offeror.

TSM had then said the cash portion would amount to RM114.54 million and the deferred amount was RM44.70 million.

In the latest development, TSM said on Tuesday that all offers must contain the structure of the offer including period of offer; purchase consideration and method of settlement; intention of the offeror with regards to the existing employees of TSM group of companies.

TSM said background information of the offeror would have to be provided, including details of all directors and shareholders of the offeror; parties acting in concert and/or connected with the offeror; background information of the transferee of the TSM business if it is not to the offeror (including ultimate shareholder of the transferee);

It also said the offeror would have to provide a plan of the TSM business for the next 12 months after completion of the proposed acquisition of its business.

TSM also stated that an offeror (including WRC) interested in submitting an offer on or before the offer deadline had to provide an earnest deposit of RM500,000 which would only be refunded if the board/shareholders of TSM reject the offer.



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TSM Global shares climb on takeover offer

KUALA LUMPUR (Feb 29): Shares of TSM GLOBAL BHD [] advanced in early trade on Wednesday after the company received a takeover offer at RM1.25 a share.

At 10.02am, it was up eight sen to RM1.20 with 60,100 shares done.

The FBM KLCI rose 6.7 points to 1,563.43. Turnover was 406.92 million shares done valued at RM268.53 million. There were 269 gainers, 171 losers and 252 stocks unchanged.

TSM announced on Tuesday that several parties owning 28.07% of its shares, had offered to acquire all the business, including assets and liabilities, for RM159.24 million or RM1.25 per share

It had received the offer letter from West River Capital Sdn Bhd – a special purpose vehicle in which TSM directors Datuk Lim Kheng Yew and Lim Tze Thean own 60:40 of West River.



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HDBSVR sees chance for Malaysian equities to rally

KUALA LUMPUR (Feb 29): HwangDBS Vickers Research said there is a chance for the Malaysian bourse to leap forward on Wednesday.

HDBSVR said that in playing catch-up with its regional peers – which mostly ended higher on Tuesday – the benchmark index could pull away from the first support line of 1,555 ahead.

It said that overnight on Wall Street, main equity bellwethers rose between 0.2% and 0.7% amid hopes that the European Central Bank (ECB)’s long-term refinancing operation scheduled this afternoon would inject more liquidity into the monetary system, thus easing the banks’ funding strains.

At Bursa Malaysia, among the slew of financial result announcements that were releasedon Tuesday, UEM Land and Padini surprised on the upside but Masterskill came in below par.

Other corporate developments that may be of interest include: (a) TSM Global, after receiving a proposal to take over its businesses for RM1.25 per share (versus its last done price of RM1.12); and (b) CWorks, which is in advanced talks to take over a profitable IT company according to one media report.



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Stocks to watch: IPPs, Mah Sing, Genting, UEM Land

KUALA LUMPUR (Feb 29): With the current corporate results drawing to an end on Wednesday, investors’ focus would be on the companies with the stronger set of financial results and their prospects for the year ahead as the external and domestic economies slow down.

The important decision would be to pick companies which would be able to ride through slower growth, especially PLANTATION []s and banks with overseas operations.

Among the stocks to watch on Wednesday after independent power producers (IPPs), MAH SING GROUP BHD [], GENTING BHD [] and UEM Land Bhd.

The Energy Commission has invited the first generation of independent power producers to submit their plans to extend the power purchase agreements (PPAs).

These IPPs, whose PPAs were scheduled to end in three to four years, were invited to extend the agreements on condition they would reduce the capacity payments.

Mah Sing Group Bhd posted net profit of RM41.03 million in the fourth quarter ended Dec 31, 2011, up 30.8% from RM31.35 million a year ago, boosted by the property segment.

Its revenue increased by 41% to RM422.12 million from RM299.28 million. Earnings per share were 4.93 sen compared with 3.77 sen. It announced dividend of 11 sen a share.

For FY11, its earnings rose 42.7% to RM168.55 million from RM118.07 million in FY10.

Genting Bhd reported net profit of RM772.91 million in the fourth quarter ended Dec 31, 2011, up 66% from RM465.43 million a year ago.

Its revenue increased by 23.9% to RM5.06 billion from RM4.08 billion. Its earnings per share were 20.94 sen compared with 12.57 sen while it proposed a dividend of 4.5 sen a share.

Group profit before tax was RM1.802 billion, compared with RM1.182 billion a year ago as it included a reversal of RM308.6 million in respect of previously recognised impairment loss relating to the UK casino licenses and a net fair value gain of RM64.4 million on derivative financial instruments.

UEM LAND HOLDINGS BHD [] posted a 3.84% increase in earnings to RM140.56 million for the fourth quarter ended Dec 31, 2011, from RM135.36 million, due to improved performance from the group's various development activities.

It said the board was confident of the group’s prospects in the coming financial year as the on-going projects had unbilled sales of RM1.85 billion as at Dec 31, 2011.

Shareholders of TSM GLOBAL BHD [], who own 28.07% of the paid-up share shares, have offered to acquire all the business, including assets and liabilities, for RM159.24 million or RM1.25 per share.

Property developer, Dijaya Corp Bhd's earnings rose 12.8% to RM39.02 million for the fourth quarter ended Dec 31, 2011, from RM34.59 million a year ago, due to better sales performance and recognition of progress billings from its project launches in 2011.

Revenue was up 53.2% to RM156.19 million from RM101.91 million. Earnings per share were 8.53 sen compared to 7.60 sen a year ago.

KFC Holdings Bhd (KFCH) saw its fourth quarter earnings decline 21.9% to RM38 million from RM48.67 million a year ago.

It said KFC India and KFCH International College continued to incur high initial start-up costs in the current quarter during the gestation period.

QSR BRANDS BHD [] reported net profit of RM38.69 million in the fourth quarter ended Dec 31, 2011, up 9.7% from the RM35.25 million a year ago due to better profits from Pizza Hut Malaysia.

Cafe chain operator Oldtown Bhd recorded RM11.66 million in profits for the fourth quarter ended Dec 31, 2011 as it benefited from an increase in exports of its beverage products and higher selling prices.

Steel contractor Eversendai Corporation Bhd recorded profits of RM36.42 million for the fourth quarter ended Dec 31, 2011, due to higher revenue from current on-going projects. Its revenue was RM313.29 million while earnings per share were 5.41 sen.

For the financial year ended Dec 31, 2011, revenue was RM1.03 billion, while profits were RM119.45 million.

Benalec Holdings Bhd, posted a 52.51% increase in earnings to RM28.84 million for the second quarter ended Dec 31, 2011, from RM18.91 million due to net gain on sale of land in the current quarter.

Its revenue was 40.54% lower to RM26.89 million from RM45.22 million mainly due to certain projects located in Melaka had already reached the completion stage.

RHB CAPITAL BHD [] posted an 8.09% fall in profits to RM348.39 million for the fourth quarter ended Dec 31, 2011, from RM380.15 million due to increased competition among banks.



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TSM shareholders in RM159m takeover deal

KUALA LUMPUR (Feb 28): Shareholders of TSM GLOBAL BHD [], who own 28.07% of the paid-up share shares, have offered to acquire all the business, including assets and liabilities, for RM159.24 million or RM1.25 per share.

TSM said it had received the offer letter from West River Capital Sdn Bhd – a special purpose vehicle in which TSM directors Datuk Lim Kheng Yew and Lim Tze Thean own 60:40 of West River.

The RM159.24 million would be RM1.25 cash per TSM share held by the remaining entitled shareholders and a deferred amount of RM1.25 per TSM share for all the shares held by identified parties as an amount remaining due and owing by the offeror.

TSM said the cash portion would amount to RM114.54 million and the deferred amount was RM44.70 million.

The parties involved would not reduce their stake to below the current 28.07% throughout the offer period and might raise their shareholdings.



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LCI snaps two-day winning streak as select blue chips weigh

KUALA LUMPUR (Feb 15): The FBM KLCI snapped its two-day winning streak and closed lower on Wednesday, lagging its regional peers, weighed by losses at select blue chips.

The FBM KLCI fell 4.75 points to 1,561.30.

Gainers led losers by 433 to 385, while 346 counters traded unchanged. Volume was 2.31 billion shares valued at RM2.15 billion.

Meanwhile, regional markets rose on Wednesday as investors hoped Greece would deliver on a commitment to enact harsh reforms, while comments from China's central bank governor saying Beijing would continue to invest in euro zone government debt aided sentiment, according to Reuters.

Asian shares, including Shanghai, Hong Kong and Japan, also broke through key technical resistances, after Zhou Xiaochuan said Beijing remains confident in the euro and in the ability of euro zone members to solve their debt problems, it said.

The Shanghai Composite Index gained 0.94% to 2,366.70, Hong Kong’s Hang Seng Index added 2.14% to 21,365.23, Japan’s Nikkei 225 rose 2.30% to 9,260.34, Taiwan’s Taiex was up 1.54% to 8,005.24, South Korea’s Kospi added 1.13% to 2,025.32 while Singapore’s Straits Times Index added 0.81% to 3,011.68.

On Bursa Malaysia, Petronas Dagangan was the top loser and fell 56 sen to RM18.22; Hartalega lost 34 sen to RM7.92, Aeon 15 sen to RM7.70, Kossan and Carlsberg down 11 sen each to RM3.44 and RM9.45, Petronas Gas 10 sen to RM16.64, while Nestle, IGB, Hong Leong Bank and KLK fell eight sen each to RM55.40, RM2.67, RM11.62 and RM25.38 respectively.

Naim Indah Corp was the most actively traded counter with 268.3 million shares done. The stock rose four sen to 52 sen.

Other actives included TMS, Dataprep, Compugates, Tiger Synergy, Perisai, Emico, SAAG and KHSB.

Among the gainers, BAT added 70 sen to RM52.48, Amtek 27 sen to 50 sen, Kim Hin, SPB and Lafarge Malayan Cement up 16 sen each to RM1.44, RM3.74 and RM7.08 respectively, TSM 15 sen to RM1.47, while SapuraCrest added 12 sen to RM5.05.



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KL shares lower at mid-afternoon

Finance and plantation-related counters contributed to the soft performance on Bursa Malaysia today with the FTSE Bursa Malaysia KLCI (FBM KLCI) easing 5.67 points to 1,560.38 as at 3.05pm, dealers said.

Hong Leong bank, Kuala Lumpur Kepong, IGB Corporation, United Plantations, IOI Corporation, Sime Darby and CIMB were among the stocks in losses.

Dealers said market players were cautious ahead of the release of the domestic economic growth data later today, contributing to the bearish performance against an improved market sentiment in the region.

Nevertheless, the market sentiment was more optimistic following a pledge from China to help resolve Europe's debt crisis. The Finance Index lost 51.66 points to 13,851.04, the Industrial Index declined 5.33 points to 2,906.77 and the Plantation Index decreased 20.31 points to 8,861.24.

The FBM Emas eased 30.29 points to 10,852.34, the FBM 70 Index dropped 5.21 points to 12,368.06 and the FBM Ace Index was 16.7 points lower at 4,687.3. Losers led gainers 395 to 329 while 353 counters were unchanged. Total volume was 1.392 billion shares worth RM1.099 billion.

Among active stocks, Dialog Group-WA rose 30.5 sen to 34.5 sen, Sapuracrest Petroleum and TSM Global each added 16 sen to RM5.09 and RM1.48 respectively.

Of the heavyweights, Maybank was unchanged at RM8.52, Sime Darby fell two sen to RM9.62, Petronas Chemicals slipped four sen to RM6.94 and CIMB slid one sen to RM7.30. -- Bernama



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KL shares lower at midday

Weighed down by losses in selected key heavyweights including Petronas Gas, Hong Leong Bank, Petronas Dagangan and British American Tobacco, the FTSE Bursa Malaysia KLCI (FBM KLCI) remained in the red at midday today, dealers said.

At 12.30pm, the benchmark index declined 6.59 points to 1,559.46, after opening 0.61 of a point better at 1,566.66.

Dealers said the subdued market sentiment over uncertainties in the eurozone, and the fourth quarter 2011 gross domestic product report to be released later today, continued to weigh in on trading.

Losers led gainers 374 to 303 on Bursa Malaysia while turnover amounted to 1.070 billion shares worth RM826.885 million.

The Finance Index declined 66.25 points to 13,836.45, the Industrial Index slipped 7.85 points to 2,904.25 and the Plantation Index dropped 28.2 points to 8,852.75.

The FBM Emas Index eased 35.18 points to 10,847.45, the FBM Ace Index slipped 18.84 points to 4,685.16 and the FBM Mid 70 Index inched down 3.570 to 12,369.69.

Volume leaders, Dialog Group-WA gained 30 sen to 34 sen, TSM Global added 14 sen to RM1.46 and Hap Seng Plantations rose 12 sen to RM3.17.

Among heavyweights, Maybank was unchanged at RM8.52, Sime Darby and CIMB each lost three sen to RM9.61 and RM7.28 respectively, while Petronas Chemicals slid two sen to RM6.96. -- Bernama



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TSM Global falls on RM21m net loss

TSM Global Bhd., a Malaysian automotive-parts manufacturer, dropped to the lowest level in a week in Kuala Lumpur trading after posting third-quarter net loss of RM21.1 million, compared with a RM8.1 million profit a year earlier.

The stock lost 1.8 per cent to RM1.10 at 9:06 a.m. local time, set for its lowest close since Dec 15. -- Bloomberg



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