KUALA LUMPUR (June 8): Based on corporate news flow and announcements today, stocks in focus tomorrow (Thursday, June 9) may include: BCorp, Magni-Tech, BAT, Mulpha International, CLIQ Energy, IHH and Salcon.
Berjaya Corporation Bhd (BCorp)’s wholly-owned subsidiary, Juara Sejati Sdn Bhd, has disposed of its entire 8.43% stake, comprising 13,716,900 shares, in Magni-Tech Industries Bhd for a cash consideration of RM56.71 million or an average price of RM4.13 per share.
The disposal was done via direct business transactions from Jan 13 to June 7. The average price of RM4.13 was at a discount of 24 sen from Magni-Tech’s closing price of RM4.37.
The cash proceeds arising from the disposal will be used as working capital of the Berjaya Corporation group. Based on the group’s carrying value of RM56 million, the share disposal resulted in a net gain of RM1.19 million, since the carrying value has incorporated a re-measurement gain of RM29.23 million. The gains were all recognized in the previous financial year ended April 30, 2016.
British American Tobacco (M) Bhd (BAT) is disposing of its factories and two parcels of leasehold land, measuring 5.3 hectares at Virginia Park, Petaling Jaya, for RM218 million cash.
Based on the purchase price, BAT is expecting a net gain of about RM148.78 million or 52.1 sen per share, after taking into consideration the audited net book value of the property, the estimated expenses to be incurred for the proposed disposal, and the real property gains tax.
The price tag, however, is below the market value of RM262.5 million for the assets, as appraised by DTZ Nawawi Tie Leung Property Consultants Sdn Bhd on April 22. BAT said the market value of the lands is RM216.80 million, whereas the market value of the buildings is RM45.70 million.
BAT said the use of the sale proceeds will be reviewed and determined by end-2016. The sum may be distributed as dividends, used to undertake capital reduction and/or repay current revolving credit facilities.
The group expects to complete the disposal by the end of the year.
Mulpha International Bhd's proposed two-call rights issue has been undersubscribed by 146.82 million shares or 13.76%.
In view of the under subscription, the group said it has resolved to allot the rights shares to all applicants who have applied for the excess rights shares in full.
"The undersubscribed 146.82 million rights shares have been subscribed by a substantial shareholder of Mulpha, namely Magic Unicorn Ltd, pursuant to the additional undertaking (as defined in the Abridged Prospectus dated May 17, 2016)," it added.
It said proceeds from the proposed rights issue will mainly be used to repay borrowings, as well as for development expenditure and working capital.
Meanwhile, the group will also allocate RM65.63 million for development expenditure and general working capital.
The remaining RM1.08 million from raised proceeds will cater for expenses in relation to the proposals.
The High Court will deliver its decision on Friday on the application by CLIQ Energy Bhd’s largest shareholder, Best Oracle Sdn Bhd, to strike out a petition to wind up the special purpose acquisition company.
Best Oracles, which owns 20% of CLIQ Energy, is seeking to strike out the petition filed by CLIQ Energy to dissolve the company and begin the liquidation process.
Best Oracles’ counsel Shamsul Bahrin Manaf argued in court today that CLIQ Energy should let shareholders vote on the winding up decision, before proceeding to file the petition in court.
However, CLIQ Energy's counsel Wong Kah Hui contended that there is no necessity for the members to take a vote, because this is an involuntary winding up.
In May, Best Oracle, made up of CLIQ’s management team, failed in its bid to obtain leave from the High Court for a judicial review to stop the liquidation process. It has filed an appeal, and had received a letter from the Court of Appeal this morning, to conduct the case management of the matter tomorrow.
The legal debacle began after CLIQ failed to get an extension of time from the Securities Commission to complete its proposed qualifying acquisition (QA) of a 51% stake in a special purpose vehicle that will host Phystech Firm LLP's two onshore Kazakhstan oilfields for US$110 million.
IHH Healthcare Bhd’s wholly-owned subsidiary, Parkway Pantai Ltd, said it is developing a 450-bed multi-specialty tertiary hospital at the Shanghai New Hongqiao International Medical Center (IMC).
The development, it said, will be undertaken by a joint-venture entity, which is 70%-owned by Parkway Pantai and 30%-owned by Shanghai Hongxin Medical Investment Holding Co Ltd.
The entity has entered into a land contract with the Shanghai Minhang District Planning and Land Authority for the development of the hospital on a 35,754 square metre site, which was acquired on leasehold basis for 50 years.
Called ParkwayHealth Shanghai International Hospital, the hospital is slated for opening in 2020, with a registered capital of 455 million renminbi (RM282 million), said Parkway Pantai in a statement today.
It will offer a range of specialties and healthcare services, with a focus on cardiology, cardiac surgery, gastroenterology, urology, minimally invasive surgery, general surgery and internal medicine, the company said.
“Given its close proximity to the Hongqiao airport and high speed railway station and Parkway Pantai's solid track record in delivering outstanding patient care and outcomes, we are confident [that] the hospital will serve the healthcare needs of the local residents, as well as medical tourists to Shanghai,” Shanghai New Hongqiao IMC Construction Development Co Ltd chairman Yang Jie said.
Wastewater engineering company Salcon Bhd has bagged two water infrastructure jobs, totalling RM232.19 million.
Salcon said its wholly-owned subsidiary, Salcon Engineering Bhd, has accepted the awards worth RM217.67 million and RM14.52 million from Konsortium Amanie JV Sdn Bhd and Pengurusan Aset Air Bhd, respectively.
The project for Konsortium Amanie involves the design and building of a 120-million litres per day conventional water treatment plant and service tank, and the installation of raw water and clean water pipes, for the Kuala Terengganu Utara Water Supply Scheme.
The project with Pengurusan Aset Air involves the upgrading of the Sg Lebam water treatment plant and distribution system in Johor.