IOI Properties, Genting Plantations, Axiata, Reliance Pacific, TNB, Boustead Holdings and Mulpha Land



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KUALA LUMPUR (March 6): Based on corporate news flow and announcements today, stocks in focus on Monday (March 9) could include: IOI Properties Group Bhd, Genting Plantations Bhd, Axiata Group Bhd, Reliance Pacific Bhd, Tenaga Nasional Bhd (TNB), Boustead Holdings Bhd and Mulpha Land Bhd.

IOI Properties Group Bhd (IOIPG) has decided to terminate its RM2.74 billion share sale agreement (SSA) entered into on Dec 5, 2014 to purchase a 37.17% stake in Taipei Financial Center Corporation (TFCC).

TFCC is a Taiwanese company notable for its ownership of the Taipei 101 skyscraper.

IOIPG (fundamental:1.35; valuation: 1.80) said the three month period for the seller and purchaser to obtain the foreign investment approval from Taiwanese authorities had expired on March 5, 2015. Following that, IOIPG decided not to extend the 3-month period of the SSA.

In accordance with the SSA, IOIPG will now proceed to obtain a refund of the deposits paid.

Genting Plantations Bhd (fundamental: 2.7; valuation: 1.5) has tied up with Musim Mas Group to set up a RM300 million palm oil refinery in Sabah.

It will have a capacity of 600,000 tonnes per annum or 1,800 tonnes per day and is targeted for completion in the second half of 2016.

Both companies had signed an agreement to set up Alfa Raya Development Sdn Bhd to helm the project; Genting Plantations will hold a 72% stake in the entity, while Musim Mas Group will have the remaining 28%.

The refinery will be part of the Genting Integrated Biorefinery Complex that the company is establishing for the production of high value-added downstream products.

With the complex, Genting Plantations aims to create high-performance palm oil derivatives, using green and efficient processes, at significantly lower production costs and capital investments than conventional petroleum-based processes.

Musim Mas Group is among the biggest players in the vegetable oil refining and soap manufacturing industries in Indonesia, and owns the largest palm oil refinery in the world.

Axiata Group Bhd (fundamental: 0.85; valuation: 0.9)’s subsidiaries Celcom Axiata Bhd and Celcom Resources Bhd (formerly known as Technology Industries Bhd) had reached a settlement with former TRI executive director Datuk Lim Kheng Yew over three legal suits brought on by TRI against Lim and former chiefs of TRI, Tan Sri Tajudin Ramli and Datuk Bistaman Ramli.

The amount of settlement agreed between the parties was not disclosed.

However, Celcom and Celcom Resources had filed their respective notices of discontinuance of suits against Lim in the Kuala Lumpur High Court, with no order of costs.

TRI had instituted a suit against the three and several others in September 2006, to recover sums paid by the company to them as alleged compensation for the loss of office and incentive payments.

The three individuals left TRI’s board in July 2002, following a bitter power tussle with Telekom Malaysia Bhd, after the latter bought a 31.25% stake in TRI.

In March 2013, the Kuala Lumpur High Court had ruled that Axiata Group was allowed to recoup a total of RM37.87 million from Lim, Tajuddin and Bistamam, as restitution of compensation payments made to them.

The decision had included interest to be paid at an annual rate of 3% from the judgement date to the date of payment realisation, but without other costs to be assessed.

Tan Sri Dr Samsudin Hitam, chief executive officer of Maju Expressway Sdn Bhd, has been appointed as chairman and director of Reliance Pacific Bhd (fundamental: 0.55; valuation: 2.1).

Samsudin will be replacing outgoing chairman and director, Datuk Gan Eng Kwong, who resigned today "to comply with corporate governance practices under the Malaysian Code on Corporate Governance 2012."

Gan, who directly and indirectly held a total of 45.6% equity in the company, is the spouse of another director Datin Irene Tan.

Tenaga Nasional Bhd (TNB) has extended the service tenure of its president and chief executive officer Datuk Seri Azman Mohd by another three years, from July 1 this year to June 30, 2018.

The electricity utility company, who has offered to take over the remaining 77% stakes it does not own in Integrax Bhd (fundamental: 1.65; valuation: 1.2), is also standing firm by its revised offer of RM3.25 a share, expressing optimism that its offer, this time, will be "well-received" by the shareholders of the port operator.

TNB (fundamental: 1.3; valuation: 1.8) is now awaiting Perak Corp's shareholders to accept the offer at its upcoming extraordinary general meeting on March 27. Perak Corp holds a 15.74% stake in Integrax, via its wholly-owned unit Taipan Merit Sdn Bhd.

TNB had raised its offer price for the rest of Integrax to RM3.25 per share on Feb 25, 2015, from the original RM2.75. Integrax shareholders have until March 31, 2015, to decide on the revised offer.

Boustead Holdings Bhd (fundamental: 0.65, valuation: 1.8) is acquiring stake in the controversial automated enforcement system (AES), via a proposed shares subscription of 50% stake in Irat Properties Sdn Bhd (Irat) for RM127.8 million.

Irat is in the midst of acquiring 100% interest in AES operators A.T.E.S. Sdn Bhd (ATES) and Beta Tegap Sdn Bhd (Beta Tegap). Irat had on Feb 27 entered into two conditional share sale and purchase agreements with ATES and Beta Tegap for the acquisitions. However, it is not disclosed when the deal will be completed nor the price of the acquisitions.

Boustead’s proposed acquisition in Irat, which is expected to be completed by second quarter of this year, is part of the group's strategic thrust to strengthen their property division and improve earnings potential.

Upon completion, the remaining equity in Irat Properties will continue to be held by Lembaga Tabung Angkatan Tentera (LTAT) and Irat Holdings Sdn Bhd, while the AES will be jointly managed by Boustead and LTAT.

The acquisition will also see Boustead acquiring two properties in the city centre, namely the Chulan Tower Office Block and The Royale Chulan Kuala Lumpur Hotel, collectively valued at RM508 million.

Mulpha Land Bhd has received a mandatory take-over offer from entrepreneur Datuk Fakhri Yassin Mahiaddin, via his private investment vehicle Teladan Kuasa Sdn Bhd, to acquire the rest of Mulpha Land for 49.7 sen a share.

The take-over offer was triggered after Teladan Kuasa exercised a call option to acquire 75 million option shares, representing up to 32.85% equity interest in Mulpha Land, at 47 sen apiece or RM35.25 million.

"The board will be meeting to consider the offer, including as to whether the board will be seeking an alternative person to make a take-over offer for the offer shares, and make an announcement in due course," said Mulpha Land (fundamental: 1.3; valuation: 2.4) in a filing with Bursa Malaysia today.

An independent adviser will be appointed to advise the non-interested directors and non-interested shareholders of Mulpha Land, in relation to the offer.

The duration of the offer will last for 21 days.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)