Stocks In Focus [13-09-2017]

(Sept 12): Based on corporate announcements and news flow today, stocks in focus tomorrow (Sept 13) could include Corp, Willowglen, Censof, Titijaya, Enra Group, Boustead Holdings and DBE Gurney.

IOI Corp Bhd has sold its 70% controlling stake in specialty edible-oils provider IOI Loders Croklaan to New York-listed Bunge Ltd for US$595 million plus 297 million euros cash.

In a filing with Bursa today, IOI Corp said it entered into a sale agreement with Koninklijke Bunge, Bunge’s wholly-owned subsidiary, to dispose of the controlling stake in Loders — the company that it invested into more than a decade ago to expand its oleochemicals operation.

The plantation giant said that the disposal is part of its internal restructuring exercise.

Willowglen MSC Bhd has received an unconditional mandatory takeover offer from its managing director Wong Ah Chiew’s private entity, New Advent Sdn Bhd, to buy the remaining 109.5 million shares or 45% stake in the company not owned by New Advent and the persons acting in concert (PACs) with it, for 80 sen per share or RM87.6 million in all.

The offer price represents a discount of 40.3% over RM1.34, which is the five-market-day volume weighted average price (VWAP) of Willowglen shares up to and including Sept 11.

It is also 42.44% less than the stock’s midday price of RM1.39 today, prior to its requested trading suspension to make way for the announcement, which gave it a market capitalisation of RM338.22 million.

The mandatory takeover offer by New Advent, an investment holding company, was triggered after the latter inked several agreements today with several vendors to buy 55.75 million shares or 22.92% stake in the company, also for 80 sen apiece or RM44.61 million in all.

Post-acquisition, the collective stake held by New Advent and the PACs in Willowglen will increase from 32.08% to 55%. The offeror intends to maintain the listing status of Willowglen, a computer-based control system developer and supplier, on the Main Market of Bursa Malaysia.

Censof Holdings Bhd is optimistic about achieving even better performance for its ending March 31, 2018 (FY18), as it foresees more positive prospects moving forward.

The group, which provides financial management software solutions, will be leveraging on expected contributions, particularly from two business segments — financial management solutions (commercial division) and training solutions — which it noted to have witnessed more developments as of late.

“For FY18, we will definitely see more positive [prospects], anchored by the two mentioned divisions. There have been a lot of developments in these two business segments lately,” Censof’s group managing director Ameer Shaik Mydin told reporters, after its annual general meeting.

Titijaya Land Bhd said it is “confident” of achieving up to RM600 million worth of new property sales in the current financial year, as the prepares to launch RM1.8 billion worth of projects.

Titijaya chief financial officer Edmund Tan said the group has set its at RM500 million to RM600 million for financial year ending June 30, 2018 (FY18), after breaching the RM300 million mark in FY17.

“Our launches have been held back for the past year or more, but we are gearing up this year”, Tan told reporters after the group’s extraordinary general meeting yesterday.

He said the group’s two high-rise mixed development in Kuala Lumpur, namely 3rdNvenue along Jalan Ampang and Riveria City at Kuala Sentral, will bring “significant contribution” to Titijaya’s FY18 performance.

Enra Group Bhd, via its (JV) with Australia-based ICON Engineering Pty Ltd, forming JV company (JVCo) Enra Icon Sdn Bhd, has secured a technology licence from national oil firm Petroliam Nasional Bhd (Petronas).

A report by energy portal yesterday said the licence allows the JV to provide services directly to Petronas.

Enra Icon Sdn Bhd, based in Kuala Lumpur, targets undeveloped Asian oil and gas fields using ICON’s range of minimal facility, wellhead platforms and self-installing production facilities.

Boustead Holdings Bhd has issued its first Islamic Medium Term Notes worth RM500 million under a programme with a nominal value of up to RM2 billion.

Investment Bank said in a filing on behalf of Boustead that the proceeds will be used to refinance existing borrowings and financing.

The sukuk programme was inked by Boustead on Aug 25, with a tenure of 10 years.

DBE Gurney Resources Bhd is considering selling three poultry products — leg meat yakitori, gizzard yakitori and tail yakitori, sourced from Japan-based GDJ Co Ltd — to generate potential sales of around RM10 million.

DBE Gurney’s plan to source the three Yakitori products was formalised after it inked a Memorandum of Understanding with GDJ today, a trading firm controlled by its director Toshikuni Nozawa.

Source: The Edge Markets

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