Sunday, June 16th, 2019

 

China prepared for long trade fight with the US, says party journal

SHANGHAI, June 16 — The United States has underestimated the Chinese people’s will to fight a trade war and Beijing is prepared for a long economic battle, an influential Chinese Communist Party journal said today. China would not give way on…


Xinhua: China’s FedEx probe should not be seen as retaliation

SHANGHAI, June 16 — China’s investigation into FedEx Corp over misdirected mail should not be regarded as retaliation against the US company, state news agency Xinhua said today, amid worsening relations between China and the United States. The…


Saudi Arabia committed to Aramco IPO, says crown prince

RIYADH, June 16 — Saudi Arabia remains committed to selling shares in national oil conglomerate Aramco through an initial public offering but only at the right time, Crown Prince Mohammed bin Salman has said. “We are committed to the IPO of…


YTL’s share swap offer a positive deal

PETALING JAYA: MIDF Research views YTL Corp Bhd’s proposal to take YTL Land & Development Bhd private via share swap as positive deal for the group, citing potential value accretion and small dilutive impact.

The research house sees the deal as a positive for YTL Corp as its shares are currently trading at over 100% premium to YTL Land’s price-to-book (PB) valuation of 0.39 times, giving rise to potential value accretion.

“While we are still largely uncertain on YTL Land’s minorities’ reception on the share swap offer (given the large disparity in valuations), despite the dilutive impact, this is potentially a net valuation accretive deal for YTL,” it said in a note.

Although YTL Land currently entails net gearing of 2.6 times compared with 2.2 times for YTL Corp, its net debt is just 5.4% of YTL’s group net debt level.

MIDF noted that YTL’s offer price of 36 sen per share (RM104 million) for the remaining 35% YTL shares is at par to its latest closing price. YTL Land’s irredeemable convertible unsecured loan stock (ICULS) will be offered at a market price of 32 sen per share totaling RM67 million.

“YTL Land is currently loss making and the offer represents a PB valuation of just 0.39 times. For the share swap, YTL’s shares will be valued at RM1.14 (at par to market price), which implies an estimated 0.8 times PBV.”

MIDF said if the offer is fully taken up, it will expand the group’s share base by 150 million new shares equivalent to 1.5% of its share, with the acquisition of YTL Land share accounting for 0.9% and the acquisition of ICULS making up 0.6%.

“However, since YTL Land is loss making, consolidation of the remaining 35% of YTL Land’s losses is estimated to impact YTL’s FY20 net profit by 6% (from an incremental RM26 million net loss).”

MIDF retains its neutral call on YTL Corp with an unchanged target price of RM1.03.


Matrade to match O&G firms with foreign buyers

PETALING JAYA: Malaysia External Trade Development Corporation (Matrade) will be matching more than 40 Malaysian companies in the oil and gas (O&G) sector with foreign buyers through its signature programme, International Sourcing Programme (INSP).

It said in a statement that the move is an effort to strengthen the inclusion of Malaysian small and medium enterprises (SMEs) in the world’s global supply chain.

The INSP will be held in conjunction with the 17th Asian Oil, Gas & Petrochemical Engineering Exhibition 2019, which is taking place on June 18-19 at Kuala Lumpur Convention Centre.

Matrade said it will bring together 10 foreign companies from Vietnam, Myanmar, United Arab Emirates, Qatar, Pakistan, the Netherlands, the US and Nigeria to the event.

The business meeting sessions serve as a cost-effective catalyst for Malaysian companies to connect and explore trade opportunities through one-on-one pre-arranged business meetings with high-quality buyers sourced from Matrade’s global offices buyers database.

“Matrade has more than two decades of experience in coordinating effective business matching for Malaysian business with foreign buyers. The last time Matrade organised the INSP at OGA was in 2015. During the event, sales of RM182.60 million (US$44.77 million) was recorded. We hope the participation this year will generate good results for the Malaysian companies,” said Matrade director of oil & gas, chemical and energy section Jai Shankar.

“This initiative will further improve market access for Malaysian oil & gas service providers amid the current challenging economic landscape in this industry. This effort has been receiving good feedback from Malaysian companies as they get to meet potential buyers from multiple countries under one roof in Kuala Lumpur. This saves their travelling cost,” he added.


“I’m still D’Nonce chairman”, says Tengku Ahmad

PETALING JAYA: Tengku Ahmad Badli Shah Raja Hussin says he is still D’Nonce Technology Bhd chairman amid new largest shareholder Blackstream Investment Pte Ltd’s bid to remove all the board of directors.

Blackstream holds a 25.61% stake in D’Nonce.

Recall that Blackstream’s call for an EGM on June 12, called by Blackstream, hit a stumbling block after Tengku Ahmad announced the passing of the motion of adjournment.

However, Blackstream, in challenging the legality of the adjournment, proceeded with the EGM. It later claimed that all resolutions were passed, including the removals of Tengku Ahmad, Lim Teck Seng and Datuk Yeo Boon Leong as well as the appointments of Lim Siang Kai, Lam Kwong Fai (Lin Guang Hui) and Chong Kim Teck.

Interestingly, Ng Kok Wah resigned as D’Nonce director on the same day, citing personal reasons.

Tengku Ahmad told SunBiz that he was shocked with the latest developments despite the EGM adjournment. He also stressed that there was no walkout at the meeting as reported as it was officially adjourned.

“We are in the midst of finalising the official minutes of the meeting which is a true representation of the EGM and that any shareholders are able to refer to the matter,” he explained.

Last Friday, Blackstream and P’ng Chiew Keem filed an originating summons in the Kuala Lumpur High Court to, inter alias, declare the adjournment of the EGM to be null and void. It is fixed for hearing on June 24.

They also filed an application fixed for an injunction to, inter alias, restrain the company from proceeding with its AGM tomorrow. However, it was dismissed by the High Court.

Tengku Ahmad stressed that he is still the rightful chairman and that he will be attending tomorrow’s AGM held in Kota Baru, Kelantan to explain the matter to the shareholders.

Speaking of business operations, he believes that the company is on track to achieve greater heights with its future business plan.

“As the new management team, mandated since mid-January 2019, we have been actively ensuring all compliances and adherence to transparency and accountability are well preserved and emphasised.”

“Although this may be time consuming, and especially with what has transpired in the organisation, we are adamant about making that positive change and restoring the company into a strong organisation in the industry. We have constantly and clearly communicated with our shareholders of our timeline and initiatives in corporate roadmap and strategies,” he stressed.

Despite the interference from the third party, Tengku Ahmad said the most important thing is to ensure a sound future plan to lead the company to profitability.

D’Nonce is involved in the supply of packaging and other materials, integrated supply chain products and services and contract manufacturing.

It saw a net profit of RM2.8 million for the 16-month period ended Dec 31, 2018. For the first quarter ended March 31, 2019, it incurred a net loss of RM1.39 million.

In its latest annual report, the group said its future plan is to become a fully integrated global contract manufacturing company through expanding its reach in the local and overseas market.


Negri Sembilan banks on business-friendly policies to attract investors, says MB

NILAI, June 16 — The Negri Sembilan government always subscribes to business-friendly policies to attract foreign and domestic investors to the state, said Menteri Besar Datuk Seri Aminuddin Harun. He said investors welcomed the policies, as it…


From apples to almonds, India hikes tariffs on US goods

NEW DELHI, June 16 — India today imposed higher tariffs on 28 items imported from the US, in retaliation to Washington’s recent withdrawal of trade privileges for New Delhi. The increased duties apply to products including almonds, apples and…


As headwinds grow, Singapore fresh grads adjust job expectations, embrace short-term contracts

SINGAPORE, June 16 — When Halida Thanveer Asana Marican started hunting for a job last December, she sent out only one or two applications. But when she did not get any replies, the final-year student at the National University of Singapore (NUS)…


Zalora aims to remain top fashion player in Asean

KUALA LUMPUR, June 16 — South East Asian e-commerce platform Zalora aims to maintain its position as a top fashion player in the region due to the good performance seen in all its markets. Zalora chief commercial officer Giulio Xiloyannis said…