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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MAHB plans share placement to raise RM598.4m

KUALA LUMPUR: Malaysia Airports Holdings 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).

MAHB said on Monday it planned to issue 110 million new shares, which was up to 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,” it said.

MAHB said assuming that the issue price was fixed at RM5.44 per placement share and MAHB issued 110 million new shares, “the company is expected to raise gross proceeds of approximately RM598.40 million”.

Of the proceeds, MAHB said RM590 million would be used to part finance the additional capex for klia2 while the remaining RM8.40 million would be used to defray expenses relating to the proposed private placement.



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Axiata gets another 2 yrs to secure outdoor structures approval

KUALA LUMPUR (Jan 30): Axiata Group Bhd has received another two-year extension from the Securities Commission (SC) to get the local authorities’ approval for its outdoor structures.

It said on Monday 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.

To recap, on Feb 22, 2010, the SC had given Axiata two years up to Jan 29, 2012 for it to get the necessary approvals for the remaining 111 structures.

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 with respect to such applications,” it said.

As part of the extension, Axiata said it had to make quarterly announcements on the status of application on the outdoor structures to Bursa Securities until the approvals were obtained.

Axiata also had to update the SC on the status of the application on the outdoor structures every six months until such approvals were obtained.



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UZMA names new chief operating officer

KUALA LUMPUIR (Jan 30): UZMA BHD [] has appointed Khong Kheng Ting as its new chief operating officer (COO) with effect from Feb 1, 2012.

In a statement Monday, UZMA said the appointment was in line with the group's business growth strategy in line with Petronas' major investment plans for the Oil & Gas industry as announced recently.

The company said Khong is a petroleum engineering graduate from University TECHNOLOGY [] Malaysia and a MBA from University of Strathclyde, United Kingdom, with 23 years experience in the upstream oil and gas services industry.

It said Khong was formerly a vice president of Roxar/Emerson Asia Pacific.

“Prior to this, he held various senior sales and operations management positions globally in Schlumberger, Halliburton and Baker Hughes, the top three global oil field services provider.

“Khong currently serves as Director of the Society of Petroleum Engineer (SPE) - Kuala Lumpur Chapter,” it said.



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D’nonce Technology posts 1Q net loss of RM6.11m due to Thai floods

KUALA LUMPUR (Jan 30): 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.

It said on Monday its factories in Bangkok were inundated by the flood waters which damaged its property, plant and equipment and inventories in early October 2011.

“The group has written off the assets which were damaged by the flood in this current quarter. Our insurance claim has yet to be finalized by the insurance company. As to date, our factories in Bangkok have yet to commence operations,” it said.

Its revenue rose 6.2% to RM40.78 million compared with RM38.36 million. Loss per share was 13.55 sen compared with earnings per share of 1.10 sen.

Notes to its accounts showed that operating expenses had increased to RM48.54 million from RM37.21 million. At the operations level, it reported losses of RM7.49 million compared with profit of RM1.35 million.

Its accumulated losses as at Nov 30, 2011 was RM19.25 million compared with RM13.14 million as at Aug 31, 2011.



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Malaysian Pacific Industries posts net loss RM16.21m in 2Q

KUALA LUMPUR (Jan 30): MALAYSIAN PACIFIC INDUSTRIES [] Bhd 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.

The company said on Monday that 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 was RM3.77.

For the nine months ended Dec 31, MPI posted net loss RM25.84 million compared to net profit RM51.13 million, on the back of a 19.4% drop in revenue to RM594.84 million from RM738.05 million.

Reviewing its performance, MPI said while the weak semiconductor market was affecting all its segments, many of the manufacturing hubs in Asia were shutting down towards the end of December to adjust for the lower demand.

“This, coupled with the general inventory correction in the industry, has further impacted the supply chain and revenue of the sub-contracting business during the quarter under review,” it said.

“The board anticipates that business prospects will remain challenging across all segments for the financial year ending June 30, 2012 given the uncertain macro-economic outlook,” it said.



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TI-Malaysia: Explain awarding of RM7.07 bn West Coast Expressway project

KUALA LUMPUR (Jan 30): Transparency International Malaysia (TI-M) has expressed concern over the apparent lack of transparency and proper procedure in the awarding of the RM7.07 billion West Coast Expressway concession project.

Its president, Datuk Paul Low said this mega project would involve massive public financing of a soft loan of RM2.24 billion and payment of RM980 million for land acquisition, and an unprecedented 60-year toll concession.

“TI-M views with concern the apparent lack of transparency and proper procedure in the award. Given the public funding and long concession period, there could have been proper governance and transparency in the award through an open, transparent and competitive procurement process and public disclosure of the terms and conditions of the contract,” he said in a statement.

To recap, on Jan 26, KUMPULAN EUROPLUS BHD [] announced to Bursa Malaysia that its 64.2% owned West Coast Expressway Sdn Bhd (WCE) has received the government’s approval to build the 316-km west coast project costing RM7.07 billion.

The 316-km Banting to Taiping expressway would be on a build-operate-transfer (BOT) with a concession period of 60 years.

KEuro also said the land acquisition cost of up to RM980 million for the project would be borne by the government.

The company had also saud a government support loan of RM2.24 billion, starting from 2013 at an interest rate of 4% per annum, and an interest subsidy, of up to 3% from commercial loans for a period of 22 years, would be granted to WCE,” it said.

KEuro had then said toll revenue in excess of an agreed traffic volume would be shared on the basis of 70:30 between the government of Malaysia and WCE till full settlement of the government support loan and subsequently 30:70 after the loan is settled.

However, on Monday, Low pointed out that such a mega project and also its impact on the public was an ideal candidate for implementing the Integrity Pact (IP), a tool for curbing corruption risks in public contracting projects.

“The government has recognised the potential benefits of IPs by a Treasury circular dated Dec 16, 2010 outlining guidelines for implementing IPs in government procurement.

“Further, MRT Corp., the GLC tasked with implementing the MRT project, has agreed to incorporate the IP in its procurement exercises,” he said.



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Perstima 3Q net profit falls 42.9% to RM7.99m on lower sales

KUALA LUMPUR (Jan 30): Perusahaan Sadur Timah Malaysia (Perstima) Bhd net profit for the third quarter ended Dec 31, 2011 fell 42.95% to RM7.99 million from RM14.01 million a year earlier, due mainly to lower sales volume coupled with lower profit margin.

The company said on Monday that its revenue for the quarter slipped 9.4% to RM204.26 million from RM225.47 million in 2010.

Earnings per share fell to 8.05 sen from 14.11 sen, while net assets per share was RM3.17.

For the nine months ended Dec 31, Perstima’s net profit fell 48.6% to RM30.55 million from RM59.42 million in 2010, while revenue was 3.51% lower at RM621.77 million from RM644.43 million.

Reviewing its performance, Perstima said its lower profit margin was due to the increase of production cost which was higher than the increase in selling price in order to remain competitive against importation in the market.

On its outlook, Perstima said it expects its operating environment to remain challenging and competitive due to lower tinplate price from China and Korea as well as the expected economic downturn in the global market.

“These factors will affect the growth and profitability of the group for the next three months,” it said.



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