Friday, March 9th, 2018


Toymakers tumble as Toys ‘R’ Us prepares to liquidate

NEW YORK, March 9 ― Shares of Mattel Inc and Hasbro Inc, the two largest US toymakers, tumbled today after reports that key customer Toys ‘R’ Us Inc is preparing for potential liquidation, six months after filing for bankruptcy. Mattel’s…

US stocks bounce on strong February jobs data

NEW YORK, March 9 ― Wall Street stocks rose early today after data showed the US added 313,000 jobs in February, far above analyst expectations. The closely-watched monthly US payrolls report also revealed moderating wage growth compared with…

UMW offers RM918.5m to boost stake in Perodua

KUALA LUMPUR, March 9 — UMW Holdings Bhd plans to boost its strategic stake in Perusahaan Otomobil Kedua Sdn Bhd (Perodua) from 38 per cent to 70.6 per cent. In a filing with Bursa Malaysia today, UMW said, it had made a conditional offer to…

EU to respond to US tariffs within 90 days if not exempt

BRUSSELS, March 9 ― The European Union expects to be excluded from US steel and aluminium tariffs but will go to the World Trade Organisation to impose its own measures if Washington presses ahead, EU officials said today. US President Donald…

Oil up after sell-offs amid optimism about Trump meeting Jong-un

LONDON, March 9 ― Crude oil futures rose today after two days of sell-offs amid optimism over a planned meeting between North Korea’s Kim Jong-un and US President Donald Trump. Kim also pledged to refrain from further nuclear or missile…

UMW seeks controlling stake in Perodua, to take MBM Resources private at RM2.56 apiece

PETALING JAYA: UMW Holdings Bhd is seeking to become the largest stakeholder in Perusahaan Otomobil Kedua Sdn Bhd (Perodua) via the proposed acquisitions of shares in MBM Resources Bhd and Perodua.

In a filing with Bursa Malaysia, UMW said it has made a conditional offer to Med-Bumikar Mara Sdn Bhd and its wholly owned subsidiary Central Shore Sdn Bhd for a collective equity interest of 50.07% in MBM Resources.

The MBM Resources offer is priced at RM501 million or RM2.56 per share to be settled in cash, valuing MBM Resources at about RM1 billion. If the offer is accepted, UMW will be obliged to extend the proposed mandatory offer (MO).

The RM2.56 offer price represents a 13.3% premium to MBM Resources' five-day volume weighted average market price of RM2.26.

UMW does not intend to maintain the listing status of MBM Resources subsequent to the proposed MO. The take over offer will remain open for acceptance until 5pm on March 28.

UMW has also made a conditional offer to PNB Equity Resource Corporation Sdn Bhd (PERC) for its 10% equity interest in Perodua at a price of RM417.5 million or RM29.80 per share, valuing Perodua at RM4.175 billion.

The offer will be satisfied via the issuance of 49.26 million new UMW shares at an issue price of RM6.09 and RM117.5 million cash.

UMW's wholly owned subsidiary UMW Corporation Sdn Bhd currently holds 38% equity interest in Perodua while MBM Resources holds 22.58% effective equity interest in Perodua.

After completion of the proposed MBM Resources acquisition and assuming full acceptance of the proposed MO, UMW's effective interest in Perodua will increase from 38% to 60.6%, which will further increase to 70.6% after the completion of the proposed Perodua acquisition.

UMW said the proposals will allow it to increase its strategic stake in Perodua, a leading marque in Malaysia with successful recent launches, as well as increase its exposure in the commercial vehicle segment via MBM Resources' multi-brand dealerships namely Daihatsu and Hino vehicles.

“MBM Resources' auto parts manufacturing business, namely its wheels manufacturing, safety products and noise, vibration and harshness products will also widen UMW's offerings in the manufacturing segment,” it said.

UMW expects the proposed acquisitions to further improve its prospects in the automotive segment by leveraging on Perodua's strength in the national car segment, coupled with its existing presence in the non-national car segment via the Toyota marque.

Maybank Investment Bank Bhd has been appointed as principal adviser to UMW for the proposals.

UMW's share price rose 5 sen or 0.85% to close at RM5.95, while MBM Resources fell 2 sen or 0.9% to RM2.20.

Keck Seng to buy hotel investment platform for RM121m

PETALING JAYA: Keck Seng (Malaysia) Bhd (KSM) is buying a stake in hotel investment platform AccorInvest Group SA for RM121 million to gain exposure to a diversified portfolio of hotels in Europe with resilient income stream and opportunities for value creation.

AccorInvest, which is owned by European hotel giant Accor SA, is the world leader in hotel real estate, with a current portfolio of 891 hotels.

KSM, which is involved in plantation, hotel and property businesses, told the stock exchange that a special purpose vehicle will be set up in which the group together with other investors will acquire the shares of AccorInvest.

However, it said the transaction, which will be satisfied by internally generated funds, is subject to certain regulatory approvals and will be submitted to the works council and a shareholders' meeting of Accor SA for consultation.

The agreement is expected to be finalised and signed by the respective parties in the second quarter of 2018.

KSM slipped 6 sen or 1.37% to RM4.32 with some 14,500 shares traded.

Weida to present selective capital reduction scheme to shareholders

PETALING JAYA: Weida (M) Bhd has decided to present the proposed selective capital reduction and repayment exercise (SCR) to its shareholders for their consideration.

Its major shareholder Weida Management Sdn Bhd (WMSB) had in last January launched its plan to take Weida private through the SCR exercise for RM2.40 per share.

WMSB has agreed to Weida's request for an extension of the acceptance period to March 12, 2018.

The rationale for the proposed SCR is that it has minimal value-add from listing status; the limited coverage by research analysts and brokers; low liquidity of Weida shares; market price not reflective of underlying value; and presents an opportunity for the entitled shareholders to exit and realise their investment.

The expenses for the exercise is estimated to be RM3.20 million and will be incurred in the next financial year as it is only expected to be completed by the third quarter of 2018.

The proposed SCR is expected to be completed in the third quarter of 2018.

Weida shares closed unchanged at RM2.27 with 43,800 shares done.

Ringgit extends bearish tone, ends lower

KUALA LUMPUR, March 9 ― The ringgit extended yesterday’s bearish tone as external factors continued to weigh on the local currency trading alongside other Asian currencies. At 6pm, the local note was quoted at 3.9100/9140 from Thursday’s…

Ranhill’s acquisition of Australian power firm falls through

PETALING JAYA: Ranhill Holdings Bhd has terminated the share sale agreement (SSA) for the AU$3.2 million (RM9.8 million) proposed acquisition of Australia's Northern Power Group Pty Ltd (NPG).

In a filing with Bursa Malaysia, Ranhill said the SSA's duration for fulfilment of the project conditions precedent has since lapsed and the parties were unable to agree on a mutual term for extension of time.

The original duration to fulfil the project conditions precedent was three months from the SSA date of Nov 20, 2017. A notice of termination was issued today.

Recall that the proposed acquisition was to enable Ranhill to participate in a new power project in Australia's Northern Territory.

NPG owns 100% equity interest in Northern Power Opco Pty Ltd, a special purpose vehicle established to undertake the proposed development of a 60MW gas-fired power generating station.

Ranhill's share price fell 0.71% or 0.5 sen to close at 69.5 sen today with a total of 1.11 million shares traded.