Widad, Lotte Chemical Titan, AME Elite, Mudajaya, Guocoland, Caring Pharmacy and LKL International

TheEdge Thu, Oct 31, 2019 01:03am - 4 years View Original


KUALA LUMPUR (Oct 30):  Based on corporate announcements and news flow today, companies that may be in focus on Thursday (Oct 31) may include the following: Widad Group Bhd, Lotte Chemical Titan Holding Bhd, AME Elite Consortium Bhd, Mudajaya Group Bhd, Guocoland (Malaysia) Bhd, Caring Pharmacy Group Bhd and LKL International Bhd.

Widad Group Bhd, whose parent company is Widad Business Group (WBG), has revised upward its offer price by 77% to RM5.3 billion cash from RM3 billion to acquire the entire stake in PLUS Malaysia Bhd.

In addition to the cash consideration, the group offered a compensation waiver of RM3.038 billion and debt assumption of RM30 billion, bringing the total enterprise value of the offer to RM38.338 billion.

The revised offer also included waiver of the RM11 billion sukuk guarantee by the Government and a new option for the Government to buy back PLUS after 10 years based on market valuation.

Meanwhile, Khazanah Nasional Bhd managing director Datuk Shahril Ridza Ridzuan said the fund is not in the mood to sell PLUS Malaysia. Khazanah holds a 51% stake in PLUS Malaysia, while The Employees Provident Fund (EPF) owns the remaining 49% stake.

Eagle US 2 LLC (Eagle US) has exercised its call option to buy an additional 34.79% stake in LACC LLC — a joint venture in which Lotte Chemical Titan Holding Bhd (LCT) holds an effective 35.2% stake.

The equity stake in LACC LLC, which owns an ethane cracker plant in Louisiana State, was transacted at US$816.47 million (RM3.41 billion). The plant carries an annual capacity to produce one million tonnes of ethylene.

Upon completion of the transaction, Eagle US’ shareholding in LACC LCC will increase to 46.77% while LC USA is left with the remaining 53.23%.

LCT holds a 40% equity interest in LC USA and LCT’s parent Lotte Chemical Corp holds the remaining 60% stake in the LC USA.

AME Elite Consortium Bhd has proposed to acquire a piece of land in Kulai, Johor, measuring approximately 6.08 hectares for RM25 million to develop units of industrial buildings with a gross development value of RM120 million.

It expects commencement date of the development to be the second quarter of 2020 and it is slated for completion within 18 months.  

Mudajaya Group Bhd, whose shares rose to its six-month peak of 35 sen yesterday, said its unit Mudajaya Corp Bhd has been granted a Worldwide Mareva Injunction up to the value of RM49.31 million and Ancillary Orders prohibiting its former employee and three other individuals from any dissipation of assets.

This order is also to prohibit any third party from knowingly assisting or permitting a breach of the order until the disposal of the full trial. The court has fixed case management on Nov 21.

Guocoland (Malaysia) Bhd, the property development arm of Hong Leong Group, reported a widened net loss of RM10 million for the first quarter ended Sept 30, 2019 (1QFY20) versus its net loss of RM1.22 million in the previous year’s corresponding quarter, marking its sixth consecutive quarter in the red.

The higher loss reported was on the back of a 38% decline in revenue for the quarter to RM48.32 million from RM77.77 million a year earlier, which was attributed to lower sales of completed units.

Caring Pharmacy Group Bhd’s net profit grew 2.27% to RM4.18 million in the first quarter ended Aug 31, 2019 (1QFY20) from RM4.09 million in the same period a year ago, as revenue increased.

Its quarterly revenue was also up 8.86% at RM163.26 million versus RM149.97 million, mainly contributed by the sales generated from the establishment of 16 new outlets.

Leading medical/healthcare beds, peripherals and accessories provider LKL International Bhd is upbeat on its prospects in light of the higher allocation for healthcare services announced in the recently-tabled 2020 Budget.

LKL said its strategy of continuously building up product portfolio with new medical accessories and devices positions the group strategically to capitalise on new opportunities set to arise from the Government’s pro-healthcare measures.

In the Budget, the Government announced an allocation of RM30.6 billion for healthcare compared with RM28.7 billion a year ago. The allocation includes the construction of new hospitals, upgrading and expansion of existing hospitals, and upgrading of medical equipment and ICT services, among others.

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