Stocks In Focus MY (Boustead, Seacera Group, Tenaga Nasional) – 31/03/15
Boustead Receives RM531 Million For ISS Job Extension
Boustead Heavy Industries Corp (BHIC) has received an extension of its in-service support (ISS) contract from the federal government for two units of Prime Minister’s class submarines of the Royal Malaysian Navy worth RM531.2 million.
The contract was supposedly ending on 30 November 2015, but BHIC’s subsidiary, Boustead DCNS Naval Corp (BDNC) received a letter of acceptance dated 3 March 2015 that approved the additional value and extension of the ISS Contract period to 31 May 2017.
The contract will allow the group to continue the maintenance of the two submarines prior to their refit, where the first vessel is due to commence its refit by the end of the year.
Significance: The ISS Contract will have material effects on the earnings of BHIC group for the financial year ending 31 December 2015 and will contribute positively to its future earnings.
Seacera Plans RM10 Billion Project
Seacera Group plans to develop a township-concept project on a 202 hectare site in Hulu Langat with a gross development value (GDV) of more than RM10 billion.
The land will be developed by the company or through a partnership.
The project is expected to be a success, with the land being closer to the city than other properties that are located further away.
Significance: The take up is predicted to have positive results if the positive response by other developers in the area are reliable. Company’s shareholders also approved the proposed diversification of the company and its subsidiaries’ businesses into property development and construction activities.
Tenaga Secures Control Of Integrax
Tenaga Nasional (TNB) has secured over 50 percent acceptance, effectively taking control of port operator Integrax after a three-month long corporate battle, with Amin Halim Rasip, Integrax’s second largest shareholder.
TNB secured 50.8 percent in Integrax, confirming the unconditional offer as of 30 March 2015. The closing date for the acceptance of offer is extended to 13 April 2015.
Amin, who has increased his stake in Integrax to 24.8 percent, had been trying to thwart TNB’s takeover of Integrax from the beginning, and had requested Integrax’s shareholders not to sell their shares to TNB yet, as he was planning to make a voluntary general offer (VGO) for the port operator.
Significance: TNB has succeeded in ending Amin’s bid to control the company by securing the majority stake in Integrax. TNB’s rationale for the takeover of Integrax was to ensure the security of coal supply for its 2,100- megawatt Janamanjung power plant, which is expected to double by 2017.
Boustead Receives RM531 Million For ISS Job Extension
Boustead Heavy Industries Corp (BHIC) has received an extension of its in-service support (ISS) contract from the federal government for two units of Prime Minister’s class submarines of the Royal Malaysian Navy worth RM531.2 million.
The contract was supposedly ending on 30 November 2015, but BHIC’s subsidiary, Boustead DCNS Naval Corp (BDNC) received a letter of acceptance dated 3 March 2015 that approved the additional value and extension of the ISS Contract period to 31 May 2017.
The contract will allow the group to continue the maintenance of the two submarines prior to their refit, where the first vessel is due to commence its refit by the end of the year.
Significance: The ISS Contract will have material effects on the earnings of BHIC group for the financial year ending 31 December 2015 and will contribute positively to its future earnings.
Seacera Plans RM10 Billion Project
Seacera Group plans to develop a township-concept project on a 202 hectare site in Hulu Langat with a gross development value (GDV) of more than RM10 billion.
The land will be developed by the company or through a partnership.
The project is expected to be a success, with the land being closer to the city than other properties that are located further away.
Significance: The take up is predicted to have positive results if the positive response by other developers in the area are reliable. Company’s shareholders also approved the proposed diversification of the company and its subsidiaries’ businesses into property development and construction activities.
Tenaga Secures Control Of Integrax
Tenaga Nasional (TNB) has secured over 50 percent acceptance, effectively taking control of port operator Integrax after a three-month long corporate battle, with Amin Halim Rasip, Integrax’s second largest shareholder.
TNB secured 50.8 percent in Integrax, confirming the unconditional offer as of 30 March 2015. The closing date for the acceptance of offer is extended to 13 April 2015.
Amin, who has increased his stake in Integrax to 24.8 percent, had been trying to thwart TNB’s takeover of Integrax from the beginning, and had requested Integrax’s shareholders not to sell their shares to TNB yet, as he was planning to make a voluntary general offer (VGO) for the port operator.
Significance: TNB has succeeded in ending Amin’s bid to control the company by securing the majority stake in Integrax. TNB’s rationale for the takeover of Integrax was to ensure the security of coal supply for its 2,100- megawatt Janamanjung power plant, which is expected to double by 2017.
