KUALA LUMPUR (May 10): Based on corporate announcements and news flow today, stocks in focus on Tuesday (May 11) may include the following: Dayang Enterprise Holdings Bhd, Boustead Holdings Bhd, Gamuda Bhd, Astino Bhd, Eastern & Oriental Bhd, EcoFirst Consolidated Bhd and Privasia Technology Bhd.
Dayang Enterprise Holdings Bhd has been awarded a contract by Sarawak Shell Bhd (SSB) and Sabah Shell Petroleum Company Ltd (SSPC) for the provision of topside major maintenance services. The value of the contract is based on work orders issued by SSB and SSPC throughout the contract duration and shall include any or all other work and services which is generally related to the scope of works in this contract at a fixed schedule of rates.
Boustead Holdings Bhd says it is unable to share further information about the Littoral Combat Ship project, following the government's announcement on Friday that the project will continue despite previous delays. Boustead said it will wait for official confirmation on the government’s approval, before disclosing any of its plans.
Gamuda Bhd confirmed today that it is currently in talks with the government to put forth its proposal to sell its four highway concessions to a private highway trust. The group, however, denied that the enterprise value of the sale would be RM5.2 billion.
It was responding to a query by Bursa Malaysia in relation to an article in this week's issue of The Edge Malaysia weekly, which stated that Gamuda had put forward a proposal to the government to sell the four highway concessions to a trust known as Amanah Lebuhraya Sdn Bhd. This trust will fund the acquisitions by raising money from bond investors with a promised annual return of 4% to 5%, backed by cash flows from the tolls without any need for government guarantees.
Astino Bhd has proposed a bonus issue of 219.29 million shares on the basis of four bonus shares for every five shares held. The exercise will increase the group’s share base to 493.41 million shares from 274.12 million shares, while the share capital will remain unchanged at RM138.27 million. The theoretical ex-bonus price of its shares will range between 51 sen and 93 sen.
Eastern & Oriental Bhd (E&O) said Tan Sri Mohd Bakke Salleh has resigned as non-independent and non-executive director of the group. E&O said Bakke's resignation, effective immediately, was "due to the cessation of Sime Darby Bhd as a major shareholder of the company".
EcoFirst Consolidated Bhd has proposed a bonus issue of up to 443.82 million warrants, on the basis of one warrant for every two existing EcoFirst shares. EcoFirst said at the assumed conversion price of 40 sen apiece — a 2.12% premium to the five-day volume weighted average market price of EcoFirst shares up to May 7 of 39.17 sen — the bonus issue is expected to raise gross proceeds of RM177.53 million, more than half of its market capitalisation of RM344 million. Such proceeds, if raised, will be placed in deposits with financial institutions and/or short-term money market instruments, the group said.
Privasia Technology Bhd has roped in the former CEO of the Malaysian Investment Development Authority (MIDA), Datuk Azman Mahmud, as its independent and non-executive director. Apart from Azman, the company also appointed Rachel Lau Jean Mei and Leong Kah Chern as independent and non-executive directors.