KUALA LUMPUR (May 17): The FBM KLCI rose 0.26% at midday break today, lifted by select blue chips, as well as as s firmer economic performance by the country. The Malaysian economy, measured by the indicator gross domestic product (GDP), has grown by 5.4% year-on-year in the first quarter (1Q) of 2018, underpinned by continued expansion in private sector activity and strong support from net exports, according to Bank Negara Malaysia At 12.30pm, the FBM KLCI gained 4.91 points to 1,863.17. Gainers and losers were tied at 296 each, whileRead More
KUALA LUMPUR: Mi Equipment Holdings Bhd, an equipment manufacturer of wafer-level chip-scale packaging sorting machines for the semiconductor industry, will not only become the first company to be listed on Bursa Malaysia’s Main Market this year but also the largest initial public offering (IPO). “Proceeds from the IPO will be predominantly used for capacity expansion […]
PETALING JAYA: Felda Global Ventures Holdings Bhd (FGV) is disposing of its 30% stake in Taiko Clay Chemicals Sdn Bhd for RM145 million, as part of the group’s efforts to dispose of non-core businesses.
FGV told Bursa Malaysia that its 72%-owned subsidiary Felda Palm Industries Sdn Bhd, which in turn a wholly owned subsidiary of FGV, yesterday entered into an agreement with Orient View Sdn Bhd for the proposed disposal.
Taiko Clay Chemicals is involved in manufacture and sale of activated bleaching earth and related products; production of sulphuric acid, oleum and battery acid; general trading and manufacturing of aluminium sulphate.
FGV’s original cost of investment in Taiko Clay Chemicals is RM41.45 million, which will bring a one-off gain on disposal of RM16.06 million.
Taiko Chemical Industries Sdn Bhd and Batu Kawan Bhd own 62% and 8% equity interest in Taiko Clay Chemicals each.
The audited net profit of Taiko Clay Chemicals for the financial year ended Dec 31, 2016 and 2017 was RM55.61 million and RM61.74 million, respectively.
Explaining the rationale behind the divestment, FGV said Taiko Clay Chemicals’ overseas expansion plan will likely require additional capital injection from its shareholders.
“Given that FGV views its interest in TCC (Taiko Clay Chemicals) as an investment in a non-core business, additional capital injection into TCC does not correspond with the objectives under SP20 (2020 Strategic Plan) and deviates from FGV’s current focus on the performance of its core businesses,” it added.
FGV also noted that Taiko Clay Chemicals may see a constraint in paying dividends in the future with its expansion plan. Since its investment in Taiko Clay Chemicals in 1997, Felda Palm Industries has received a total of RM58.6 million in dividends from Taiko Clay Chemicals.
On Bursa Malaysia today, FGV gained 19 sen or 11.8% to RM1.80 on volume of 108.2 million shares.
PETALING JAYA: Mi Equipment Holdings Bhd has received the Securities Commission of Malaysia’s (SC) approval for its initial public offering (IPO) on the Main Market of Bursa Malaysia.
Mi Equipment, slated to be the first new listing on the Main Market this year, is a manufacturer of wafer-level chip scale package sorting machines for the semiconductor industry.
“The approval is a significant step towards materialising our growth plans and it is a milestone accomplishment, in accordance with the route map set up during our company’s incorporation,” its CEO and executive director Oh Kuang Eng said in a statement.
“The IPO will provide us with the financial impetus needed to achieve our growth strategies, which is vital for us to stay competitive in a dynamic business environment that encompasses an ever-increasing demand for high performance semiconductor manufacturing technologies,” he added.
The IPO comprises 152.9 million shares wherein 60.4 million shares will be offered via private placement to identified investors, 50 million shares to bumiputra investors approved by the Ministry of International Trade and Industry, 25 million shares to the Malaysian public and the remaining 17.5 million shares to eligible directors, employees and business associates.
The proceeds will be used for the construction of two production facilities cum offices in Bayan Lepas and Batu Kawan, Penang, working capital, and research and development.
Oh said the group plans to expand its capacity with the construction of the two factories in the next three years.
For the last three financial years, he said, the majority of the group’s revenue was derived outside of Malaysia.
Affin Hwang Investment Bank Bhd is the principal adviser, sole underwriter and sole placement agent for Mi Equipment’s IPO.
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KUALA LUMPUR: The Securities Commission (SC) announced that as at January 17, 2018 there are only seven companies with all-male boards out of 100 top companies, a 65 per cent improvement from 20 companies as at December 31, 2016. During the launch of the Malaysian Code on Corporate Governance (MCCG) in April last year, the […]