Thursday, April 12th, 2018

 

Wall Street jumps on earnings optimism, Syria worries ebb

NEW YORK, April 12 — Wall Street stocks bounced higher today as expectations that lower US taxes would fuel corporate earnings added to easing of nerves over US military conflict with Russia in Syria. Growth stocks including technology,…


EU regulators tell financial firms to prepare for Brexit

LONDON, April 12 — European Union regulators urged banks, investors and customers today to take “timely action” to avoid disruption to cross-border derivatives and insurance contracts caused by Brexit. Britain leaves the EU in March 2019…


Bio Osmo proposes to acquire six hospitality companies

PETALING JAYA: Drinking water company Bio Osmo Bhd proposes to acquire six companies for a total of RM425.9 million to expand its existing hospitality business.

Five of the companies are Impiana Hotels & Resorts Management Sdn Bhd (100% stake for RM70.84 million), Impiana Pangkor Sdn Bhd (100% for RM79 million), Astaka Mekar Sdn Bhd (100% for RM15.83 million), Intra Magnum Sdn Bhd (25% for RM12.68 million) and Impiana Cherating Sdn Bhd (100% for RM207.14 million), to be satisfied through the issuance of new shares and new irredeemable convertible preference shares (ICPS), at an issue price of 5 sen per share.

In addition, Bio Osmo’s 75%-owned Intra Magnum is buying Impiana Ipoh Sdn Bhd for RM40.41 million, which is to be satisfied via the combination of 174.11 million new shares, 116.07 million new ICPS and RM25.9 million cash.

Bio Osmo said the purchase sum falls within the range of the fair market value of RM397.80 million to RM439.98 million.

Following the acquisitions, Bio Osmo proposes to change its name to “Impiana Hotels (Malaysia) Bhd” to better reflect its principal business activity and the corporate identity.
The hospitality business contributed 51.6% to its financial year ended June 30, 2017.

In addition, the group proposes to undertake a private placement of up to 2 billion new shares to raise RM100 million at 5 sen per share for the repayment of bank borrowings, repayment of advances from shareholders and future expansion of hospitality assets/working capital.

Bio Osmo is also planning an offer for sale of up to 1 billion shares to independent third party investors at 5 sen per share.

On Bursa Malaysia today, Bio Osmo gained half a sen or 11.1% to close at 5 sen on volume of 544,000 shares.


Global trade growth strong but at risk if conflict escalates, WTO says

GENEVA, April 12 — World trade in goods is maintaining a robust recovery, but it still might falter if trade tensions escalate further, the World Trade Organisation said in its annual forecast today. Trade in goods will grow 4.4 per cent this…


International banking model must evolve for future needs, says BNM deputy governor

KUALA LUMPUR, April 12 — The model of international banking must evolve to become more desirable and beneficial for the needs of the future, said Bank Negara Malaysia (BNM) Deputy Governor, Shaik Abdul Rasheed Abdul Ghaffour. He said the…


Malaysia’s economy to grow by 5.4pc this year, says World Bank

KUALA LUMPUR, April 12 — The World Bank has raised its projection of Malaysia’s economy to grow by 5.4 per cent this year from its earlier projection of 5.2 per cent. In its World Bank East Asia and Pacific Economic Update April 2018…


IHH Healthcare said to be planning rival bid for India’s Fortis

BENGALURU: Malaysia’s IHH Healthcare Bhd plans to bid for India’s Fortis Healthcare Ltd at a price marginally better than Manipal Hospitals Enterprises Pvt Ltd’s offer, Bloomberg reported today, citing people aware of the matter.

The rival bid by IHH would follow Manipal’s offer on April 10 to buy Fortis at around 155 rupees per share, or 80.39 billion rupees (RM4.77 billion), which minority shareholders – including billionaire Indian investor Rakesh Jhunjhunwala – had expressed concerns about.

The IHH bid could value the healthcare services giant at as much as US$1.3 billion (RM5 billion), according to Bloomberg.

IHH, which wants to work with Fortis on a friendly offer, has asked the board for time to update its due diligence before making a formal bid, the report added.

Fortis shares spiked following the report, although it wasn’t immediately clear if the new bid would appease minority shareholders.

The deal is critical for Manipal to expand its presence in the growing hospitals business beyond south India. Increasing access to healthcare services and a government drive to expand health insurance are expected to increase footfalls at hospitals, benefiting chains such as Manipal and Fortis.

IHH, one of Asia’s largest healthcare operators, has been scouting acquisitions to grow in India, where it has said before that it expects a spike in demand for private healthcare.

Fortis chief executive Bhavdeep Singh said on a call last month that other parties, which he declined to name, had expressed an interest in buying Fortis.

IHH declined to comment yesterday and Fortis did not respond to a request for comment.

Fortis shares jumped as much as 4% today to reach 153.9 rupees, their highest level since March 27, when Manipal made its first offer public. – Reuters


Serba Dinamik unit buys stake in UAE-based Al Sagar

PETALING JAYA: Serba Dinamik Holdings Bhd’s unit has acquired 49% of UAE-based pumps supplier Al Sagar Engineering Group LLC and Al Sagar National Establishment (Al Sagar) for 10 million dirhams (RM10.54 million) cash.

The group told the stock exchange, the acquisition is part of its strategy to expand its business into asset ownership model which further enables it to gain access to projects and markets which are complementary to its operations.

Moving forward, it said the acquisition is expected to enhance the group’s financial position and profitability.

Al Sagar currently holds various licences from reputable original equipment manufacturers, including Mitsubishi Heavy Industries Ltd (Japan) and SPP Pumps Ltd (UK). It is also a registered vendor with several upstream and downstream national oil and gas companies in the UAE.

Serba Dinamik said its unit Serba Dinamik International Ltd (SDIL) has entered into a share purchase agreement with Abdulla Al Hamad Al Sagar & Bros for the stake acquisition.

Serba Dinamik said the purchase consideration was arrived at on a “willing buyer-willing seller” basis after taking into consideration the future earnings potential of Al Sagar.

The purchase consideration was funded through the proceeds from the group’s initial public offering (IPO) which was completed on Feb 8, 2017.

On Bursa Malaysia yesterday, Serba Dinamik slipped 3 sen or 0.9% to RM3.30 with 1.5 million shares traded.


Serba Dinamik unit buys stake in UAE-based firm

PETALING JAYA: Serba Dinamik Holdings Bhd’s unit has acquired 49% of UAE-based pumps supplier Al Sagar Engineering Group LLC and Al Sagar National Establishment (Al Sagar) for 10 million dirhams (RM10.54 million) cash.

The group told the stock exchange, the acquisition is part of its strategy to expand its business into asset ownership model which further enables it to gain access to projects and markets which are complementary to its operations.

Moving forward, it said the acquisition is expected to enhance the group’s financial position and profitability.

Al Sagar currently holds various licences from reputable original equipment manufacturers, including Mitsubishi Heavy Industries Ltd (Japan) and SPP Pumps Ltd (UK). It is also a registered vendor with several upstream and downstream national oil and gas companies in the UAE.

Serba Dinamik said its unit Serba Dinamik International Ltd (SDIL) has entered into a share purchase agreement with Abdulla Al Hamad Al Sagar & Bros for the stake acquisition.

Serba Dinamik said the purchase consideration was arrived at on a “willing buyer-willing seller” basis after taking into consideration the future earnings potential of Al Sagar.

The purchase consideration was funded through the proceeds from the group’s initial public offering (IPO) which was completed on Feb 8, 2017.

On Bursa Malaysia yesterday, Serba Dinamik slipped 3 sen or 0.9% to RM3.30 with 1.5 million shares traded.


Wholesale, retail sales value up 7.5% in February

PETALING JAYA: Wholesale and retail trade sales value rose 7.5% to RM97.3 billion in February compared with the RM90.5 billion registered in the corresponding period last year, on the back of the positive growth of 9.2% and 7.5% in retail trade and wholesale trade, respectively.

On a month-on-month (mom) basis, wholesale and retail sales declined 3.8% from RM101.1billion recorded in January 2018, due to negative sales value recorded by the retail trade, wholesale and motor vehicle segments.

Sales value encompasses the wholesale trade, retail trade and motor vehicles businesses.

On a yoy basis, wholesale trade rose 7.5% to RM47.6 billion, while retail trade was up 9.2% RM39.2 billion. As for the motor vehicle segment, its sales value grew 1.9% to RM10.5 billion.

MIDF Research foresees distributive trade sales to remain on steady momentum underpinned by stable job market, strengthening ringgit, decelerating inflationary pressure, tourism activities and accommodative economic policies.

The research house foresees Malaysia’s domestic spending will continue expanding at steady pace in 2018, in line with external trade activities and tourism performance.

“Firm domestic spending together with strengthening labor market including more job creation and wage growth will support Malaysia’s economy particularly via private consumption and services sectors.”

MIDF Research estimates private consumption and services sectors to grow at 6.5% and 6.2% respectively for 2018. Overall, the Malaysian economy is projected to grow 5.5% in 2018.