Envair proposes to place out 30% of paid-up to raise RM9.78m

KUALA LUMPUR (March 2): ENVAIR HOLDING BHD [] plans to undertake a private placement of up to 35.56 million new shares or 30% of its paid-up to raise RM9.78 million.

It said on Friday that the shares, at an indicative price of 27.5 sen per share, would be placed out to its major shareholder Deepak Jaikishan, directors Mohd Anuar Mohd Hanadzlah and Mohd Shukri Abdullah and independent third parties.

Of the 35.56 million shares, Envair said 18 million units would be allocated to Deepak, 16.06 million shares to independent investors, one million shares to Anuar and 500,000 units to Shukri.

“The proceeds are to be utilised by Envair and its subsidiaries for working capital in relation to the proposed new business of the group, namely distribution and trading of oil and gas products,” it said.

To recap, on Oct 13 last year, its unit Envair Energy Sdn Bhd had entered into a joint collaboration with Resscom Petroleum Sdn Bhd for distribution and trading of oil and gas products.



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Cypark Resources proposes private placement to raise RM27.48m

KUALA LUMPUR (March 2): CyPARK RESOURCES BHD [] has proposed to place out up to 15.52 million shares or 10% of the paid-up share capital to raise up to RM27.48 million.

It said on Friday the indicative issue price was RM1.77 per placement share, or a discount of about 10% to the five-day volume weighted average market price of the shares up to and including the last practical date of RM1.9585.

“The proposed private placement will enable Cypark to raise funds for its working capital requirements without incurring interest costs, as compared to bank borrowings,” it said.

Cypark added the corporate exercise was the fastest way to raise funds from the capital market as opposed to other forms of fund raising.

It said the shareholders had approved the issuance of up to 10% of the issued and paid-up share capital at its AGM on April 27, 2011.



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PNB, Liew hold 51.24% of S P Setia, offer now unconditional

KUALA LUMPUR (March 2): Permodalan Nasional Bhd (PNB) and S P Setia president and CEO Tan Sri Liew Kee Sin’s conditional takeover of the property company has become unconditional as they collectively hold 51.52% of the shares.

S P Setia said on Friday the joint offerors and parties acting in concert collectively hold 976.72 million shares or 51.24% as at March 2.

“The offer will remain open for acceptances until 5pm on Monday, March 19, unless otherwise extended by the joint offerors,” it said.

PNB and Liew had made a cash offer price of RM3.95 per share and 96 sen per warrant.



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DBE Gurney proposes placing out 67m shares to raise funds for working capital

KUALA LUMPUR (March 2): Poultry-based DBE Gurney Bhd has proposed to place out 67.33 million shares or 10% of the current paid-up share capital to raise funds for working capital.

The company said on Friday that based on the audited loss after tax of about RM3.71 million incurred by the group for the financial year ended Dec 31, 2010 and the group’s immediate working capital requirements, the placement was the most appropriate method to raise funds.

“The proposed private placement will enable the DBE Gurney group to raise fund for working capital requirements, improve the group’s cash flow position and also to provide continued support to the Group’s existing business and future business expansion,” it said.

DBE Gurney said assuming the placement shares were issued at an indicative issue price of 10 sen per placement share based on the par value of the shares, the proposed private placement is expected to raise gross proceeds of up to RM6.73 million.

It said the working capital amount would be used to fund the group’s day-to-day operations which may include purchases of raw material such as soy, feed and other operational expenses.

It added the actual proceeds to be raised from the proposed private placement would depend on the final issue price of the placement shares.



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S P Setia ex-CFO disposes of 2.7m shares under takeover offer

KUALA LUMPUR (March 2): S P Setia Bhd’s former chief financial officer Yap Kok Weng disposed of 2.70 million shares on Feb 28 following the conditional mandatory takeover offer.

A filing to Bursa Malaysia showed he had accepted the conditional mandatory take-over offer by Permodalan Nasional Bhd and S P Setia president and chief executive officer Tan Sri Liew Kee Sin.

Yap was the CFO until July 2009 but remained with the group as the executive vice president in charge of strategic planning pursuant to an internal reorganisation of responsibilities within the group.



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CIMB leads KLCI to higher close, 11 pts away from all-time high

KUALA LUMPUR (March 2): CIMB led the FBM KLCI to a higher close, just 11 points away from the all-time high of 1,594.74 in July 2011, as the firmer blue chips galvanised market sentiment.

At the close, the KLCI was up 10.33 points or 0.66% to 1,583.78. Turnover was 1.63 billion shares valued at RM1.93 billion. Advancing counters beat decliners 540 to 276 while 330 counters were unchanged.

Reuters reported European shares edged up to their highest level in more than a week on Friday, with the European Central Bank's ultra-cheap funding this week helping the euro zone debt market and further reducing risk within the battered banking sector.

Financials were among the top gainers, with the STOXX Europe 600 Banking index rising 0.6 percent and Commerzbank advancing 3%. The index, which was the worst performer in 2011 with a 32% drop, has gained about 19% so far this year.

Among the key regional markets, Japan’s Nikkei 225 rose 0.72% to 9,777.03, Hong Kong’s Hang Seng Index added 0.81% to 21,562.26, Shanghai’s Composite Index added 1.43% to 2,460.69 and Singapore’s Straits Times Index 0.49% higher at 2,993.49.

BAT was the top gainer, adding 40 sen to RM53.50. Its fourth interim dividend of 66 sen per share tax exempt will go ex on Tuesday.

CIMB rose 16 sen to RM7.33, pushing the index up 2.82 points after the banking group moved closer to expand its regional reach by acquiring certain assets of The Royal Bank of Scotland in Asia Pacific.

AMMB added nine sen to RM6.26 while Maybank and Public Bank rose two sen each to RM8.77 and RM13.70.

Petronas Chemical added 15 sen to RM6.90, Genting 14 sen to RM10.60 while DiGi and YTL advanced eight sen each to RM4.12 and RM1.78.

KHSB was the most active counter with 76 million shares done, adding 6.5 sen to 62.5 sen.

Silver Bird was unchanged at 20.5 sen as the price could have bottomed out after being sold down on Thursday where it lost nearly half its value.

China Stationery Ltd saw its share price slipping three sen to RM1.8 as investors took profit following its listing on Feb 24 at the offer price of 95 sen.

Among the decliners, PPB fell 34 sen to RM16.94, Dutch Lady 22 sen to RM29.50, Ta Ann 20 sen to RM5.71 and Hartalega 19 sen to RM8.13.



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Dijaya’s corporate exercise to involve very substantial transaction

KUALA LUMPUR (March 2): DIJAYA CORPORATION BHD [] plans to under a corporate exercise which would involve a very substantial transaction.

The property developer said on Friday it had requested for the suspension in the trading of the securities for next Monday and Tuesday. Details of the corporate exercise would be released on Tuesday.

Trading in the securities was suspended from 4.35pm on Friday.

Dijaya’s share price rose to an intra-day high of RM1.72. It was up four sen to RM1.67 before trading was suspended.

Market talk is that Dijaya's major shareholder Danny Tan Chee Sing could be injecting his personal assets into the company which could increase the market capitalisation from RM766 million to about RM1 billion.



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Dr M: Transform Proton and reverse financial losses

KUALA LUMPUR (Mar 2): DRB-HICOM BHD [] has been urged by Tun Dr Mahathir Mohamad to transform PROTON HOLDINGS BHD [] and look at ways to reverse the current fiscal losses.

In making the call, the former premier and adviser to the national auto maker said the new management after the takeover, scheduled to be completed this month, has to bring the national automotive company to its old glory.

"Obviously, you (DRB-Hicom) need to beef up the organisation, examine all the losses to see how you can reimburse the losses.

"Generally, the new company will have to look at all aspects of management of Proton as it is weak in all angles," Mahathir told Bernama in an interview.

The national car maker's pre-tax loss widened to RM84.054 million for the third quarter ended Dec 31, 2011 compared to a pre-tax loss of RM51.535 million in the same period in 2010.

Revenue for the period also decreased to RM1.432 billion from RM1.833 billion previously.

Turnover for the first nine months also dipped to RM5.92 billion from RM6.36 billion on the back of a RM36.530 million loss before taxation against a pre-tax profit of RM134.3 million recorded in the corresponding period in the preceding financial year.

On the new Proton chief, Mahathir said it is up to DRB-Hicom whether to name a new successor or to retain the old management.

Asked whether Proton can regain its glory with the old management under a new parent, Mahathir said: "Obviously, there might be some new inputs from DRB-Hicom. For sure it is not just going to buy Proton and leave it as it is."

He added the profitability aspect was lacking from the current management under the leadership of chairman Datuk Seri Mohd Nadzmi Mohd Salleh and group managing director Datuk Seri Syed Zainal Abidin Syed Mohamed.

"Well, they (Proton) are not making a profit. Business must make profit. So we must find out why they are not making profit," Mahathir said.

In January 2012, DRB-Hicom struck a deal to buy Khazanah Nasional Bhd's 42.7 per cent stake in Proton for RM1.29 billion or RM5.50 per share.

DRB-Hicom is expected to officially take Proton private later this month, after the completion of certain take-over codes and regulations. — Bernama



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