bonus issue

 
 

Alam Maritim’s share price flat on fund raising proposals

PETALING JAYA: Alam Maritim Resources Bhd's share price remained flat at 12.5 sen this morning, after proposing to issue redeemable convertible notes to raise up to RM160 million.

At 10.45 am, the stock was still trading at 12.5sen with 615,000 shares done.

The loss-making firm told Bursa Malaysia on Friday that it also plans to undertake a bonus issue of up to 462.23 million free warrants on the basis of one free warrant for two shares held, which could potentially raise up to RM73.96 million to fund capital expenditure and working capital, among others, based on an indicative exercise price of 16 sen per warrant.

Meanwhile, of the RM160 million proceeds raised from the notes issue, RM50 million will be used for maintenance and inspection/drydocking works; RM80 million as capital expenditure for vessel acquisition and conversion; and RM17.6 million as working capital.

The notes, carrying 1% interest per annum with a maturity period of three years, will be issued in three tranches.

Alam Maritim does not expect the proposed notes issue to have an impact on its controlling shareholder as the subscribers will not hold more than a 10% stake.

It said the proposed notes issue is the most appropriate avenue of raising funds to improve the group's financial performance as it is cost effective with a flexibility in drawdown.


Alam Maritim to raise RM160m via convertible notes, proposes 1-for-2 bonus issue of warrants

PETALING JAYA: Loss-making Alam Maritim Resources Bhd proposes to issue redeemable convertible notes to raise up to RM160 million.

It also plans to undertake a bonus issue of up to 462.23 million free warrants on the basis of one free warrant for two shares held, which could potentially raise up to RM73.96 million to fund capital expenditure and working capital, among others, based on an indicative exercise price of 16 sen per warrant.

Meanwhile, of the RM160 million proceeds raised from the notes issue, RM50 million will be used for maintenance and inspection/drydocking works; RM80 million as capex for vessel acquisition and conversion; and RM17.6 million as working capital.

The notes, carrying 1% interest per annum with a maturity period of three years, will be issued in three tranches.

Alam Maritim does not expect the proposed notes issue to have an impact on its controlling shareholder as the subscribers will not hold more than a 10% stake.

“In addition, the proposed bonus issue of warrants will enable the existing shareholders to increase its shareholding proportionately upon the exercise of the free warrants,” it explained.

Alam Maritim said the proposed notes issue is the most appropriate avenue of raising funds to improve the group’s financial performance as it is cost effective with a flexibility in drawdown.

The stock was unchanged at 12.5 sen with 722,200 shares done.


Top Glove sees 7.5% increase in Q4 net profit

PETALING JAYA: Top Glove Corp Bhd saw net profit for the fourth quarter ended Aug 31, 2018 rise 7.5% on higher sales volume and lower operating expenses.

This was despite an almost 69% increase in taxes for the quarter.

The group made a net profit of RM101.6 million for the quarter under review, compared with RM94.5 million for the corresponding quarter in 2017.

Revenue for the period was up 34.9% at RM1.2 billion, compared with RM902.4 million for the same period in 2017, making it the highest ever sales revenue ever recorded in a single quarter.

The group said an impairment test performed showed that there is no impairment required for the provisional goodwill arising from the acquisition of Aspion on RM1.16 billion as at Aug 31, 2018.

The group has recommended a final dividend of 10 sen per share (before bonus issue), which if approved will bring the total FY2018 dividend payout to 17 sen per share, an increase of 2.5 sen or 17% over FY2017.

Top Glove said it would continue to pursue strategic expansion, with the expansion of several existing facilities, as well as explore inorganic expansion via mergers and acquisitions, as well as new set ups in related industries in order to grow faster and more efficiently.

The facilities expansion are to be completed in 2019, while its newest factory in Thailand, is scheduled to be operational early 2020. These will boost the group’s total number of production lines by an additional 98 lines and production capacity by 9.8 billion gloves per annum.

By 2020, Top Glove is projected to have 746 production lines and a production capacity of 69.1 billion gloves per annum.

Top Glove is also looking to expand its operations to Vietnam and has entered into an agreement to acquire a piece of land for a factory, which is to be operational within the next two years.

For the full year ended Aug 31, 2018 the group made a net profit of RM433.6 million, compared with RM328.6 million for the financial year 2017.

Revenue for the financial year 2018 was 23.7% higher at RM4.2 billion, compared with RM3.4 billion for the same period in 2017.


Top Glove open to further M&As, undeterred by troubled Asdion deal

SHAH ALAM: Top Glove Corp Bhd remains open to further merger and acquisition (M&A) opportunities despite the company's troubled RM1.3 billion acquisition of Aspion Sdn Bhd from Singapore's Adventa Capital Pte Ltd.

Speaking to reporters after its EGM today, Top Glove founder and executive chairman Tan Sri Lim Wee Chai (pix) said the company is always on the lookout for a good opportunity, noting there are still a lot of good companies in the industry.

“We will continue to look out for good company. We will learn from this (the Aspion deal) and be more careful in acquiring things,” Lim added.

After three hours of deliberations at its much awaited EGM today, Lim said the shareholders approved the removal of Low Chin Guan, Adventa Capital's representative, as a director of the company with immediate effect, following the company's lawsuit against Adventa Capital.

“We are very happy for the support from the shareholders,” Lim said.

It is learnt that Low did not attend the meeting but sent a written representation instead, claiming that the action to remove him from Top Glove board of directors is unlawful and breached the sale and purchase agreement as he had not engaged in any fraudulent conduct.

Low noted that the company and its wholly owned subsidiary Top Care Sdn Bhd will be responsible for any losses he and Adventa Capital may suffer as a result of the litigation.

He also said Adventa Capital no longer considers itself obligated to guarantee the core profit after tax shortfall based on a clause in the sale and purchase agreement for Aspion.

The litigation, which seeks a sum of RM714.9 million from Adventa Capital, comes three months after Top Glove completed the acquisition, upon the latter discovering financial irregularities in Aspion's balance sheet.

Although a due diligence was done before the acquisition took place, Lim said, it was not easy to discover the irregularities as “they were very good at manipulating the financial statements”.

“Even the accountant could not find out but it took us about three months to find out,” he added, noting that the litigation process is ongoing and the group is confident of reclaiming the amount.

At its EGM earlier, Top Glove shareholders also approved a proposal to undertake a bonus issue on the basis of one bonus share for every one existing share held by shareholders. The exercise will see up to 1.28 billion bonus shares issued to shareholders of the company.

On Bursa Malaysia today, Top Glove closed unchanged at RM10.50 on volume of 5.88 million shares.


Shareholders approve Top Glove’s one-for-one bonus issue

KUALA LUMPUR, Oct 10 — Top Glove Corporation Bhd has secured shareholders’ approval for its one-for-one bonus share issue, which entailed up to 1.28 billion new ordinary shares in the company. Executive Chairman Tan Sri Lim Wee Chai noted that…


Top Glove shareholders vote to remove Adventa Capital board rep

SHAH ALAM: After three hours of deliberations at Top Glove Corp Bhd’s much awaited EGM today, shareholders approved the removal of Low Chin Guan as a director of the company with immediate effect, following the company's suit against Singapore’s Adventa Capital Pte Ltd over the RM1.3 billion Aspion Sdn Bhd deal.

It is learnt that Low did not attend the meeting but sent a written representation instead, claiming that the action to remove him from Top Glove board of directors is unlawful as he had engaged in any fraudulent conduct.

Top Glove shareholders also approved its proposal to undertake a bonus issue on the basis of one bonus share for every one existing share held by shareholders.

The exercise will see up to 1.28 billion bonus shares issued to shareholders of the company.


Taliworks gets shareholders approval for bonus issue

PETALING JAYA: Infrastructure company Taliworks Corp Bhd has obtained its shareholders' approval to undertake a two-for-three bonus issue of ordinary shares at its EGM today.

The bonus issue, slated for completion by mid-October, involves the issuance of up to 967.6 million new ordinary shares in the company, the group said in a statement.

Following its completion, together with an assumed conversion of all the existing warrants, Taliworks’ existing share capital will increase to a maximum of RM849.6 million comprising 2.4 billion shares.

“We are very pleased that our shareholders have given their approval to the bonus issue. The bonus issue is intended to allow shareholders of Taliworks to have greater participation in the company’s equity in terms of numbers of shares, while retaining their percentage of equity interest held,” its executive director Datuk Ronnie Lim said.

“Additionally, we are hopeful that the increase in the number of shares in issue will lead to an improvement in Taliworks’ share trading liquidity and marketability on the Main Market of Bursa Securities Malaysia Bhd,” he added.

Lim noted that the group remains on track to complete the bonus issue within the stipulated time frame.

Moving forward, he said the group will continue with its commitment to enhance its shareholders’ value by seeking potential value accretive opportunities for its businesses.

Taliworks is an established pure-play infrastructure company engaged in water treatment, supply and distribution, highway and toll management, waste management and construction and engineering.


A-Rank’s share price up eight sen on venture into property segment

PETALING JAYA: A-Rank Bhd's share price rose 10% or eight sen to 83 sen today on a proposal to diversify into the property development segment.

Some 1.1 million shares were traded earlier.

It is currently involved in the marketing and manufacturing of aluminium billets, with 65% of its revenue generated from domestic sales and the remaining 35% from export sales.

The group said in a filing with the stock exchange yesterday that its venture into the property development business may in future result in a diversion of 25% or more of its net assets and/or may contribute 25% or more of its net profit.

“The board believes that the proposed diversification will potentially contribute positively to the group’s future earnings. In addition, the proposed diversification may reduce the group’s reliance on its manufacturing business which is increasingly competitive, and subject to volatility of its primary raw material i.e. aluminium prices as well as fluctuation in foreign exchange rate as aluminium is imported and denominated in US dollar.”

While the property market is expected to remain flat and challenging in the medium-term, the group is of the view that the long-term prospect for property development is encouraging given the positive outlook of the Malaysian economy.

Despite the diversification, A-Rank said it remains committed to its existing business and will continuously endeavour to improve its business performance.

In separate filing, the group announced a bonus issue plan on the basis of two bonus shares for every five existing shares held.  

The proposed bonus issue entails the issuance of up to 51.45 million bonus shares and will be implemented by capitalising up to RM25.7 million from its retained earnings.


IJM Corp, Pesona Metro, Borneo Aqua, Ark Resources, Sapura Energy and UEM Edgenta

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KUALA LUMPUR (Sept 4): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Sept 5) may include the following: IJM Corp Bhd, Pesona Metro Holdings Bhd, Borneo Aqua Harvest Bhd, Ark Resources Bhd, Sapura Energy Bhd and UEM Edgenta Bhd IJM Corp Bhd has bagged a contract worth RM505 million to construct and complete the superstructure works of Affin Bank Bhd’s new 47-storey corporate headquarters at the upcoming international financial district Tun Razak Exchange (TRX). The new project, which is expected to be completed byRead More


Daiman Development major shareholders offer to take company private at RM3 a share

PETALING JAYA: Property developer Daiman Development Bhd has received an offer from its major shareholders Tay Kia Hong & Sons Sdn Bhd and Daiman Holdings Sdn Bhd to privatise the group by way of a selective capital reduction and repayment exercise (SCR) at RM3 per share.

Daiman Development told Bursa Malaysia that the board (save for the interested directors, namely, Tay Thiam Song, Tay Tian Liang, Tay Thiam Yew and Tay Hui Fong) will deliberate on the proposed SCR and decide on the next course of action.

“Accordingly, a further announcement will be made in due course after the board's deliberation.”

The SCR involves a total capital repayment of RM295.48 million or RM3 per share, which represents a 38.3% premium to its last traded price of RM2.17. Trading in the stock was suspended today pending the material announcement.

Daiman Development noted that the SCR offer price will not be reduced by the proposed 5 sen dividend in respect of the financial year ended June 30, 2018.

Given that the capital reduction is higher than the group's existing issued share capital, a bonus issue is proposed to increase its share capital up to a level which is sufficient for the capital reduction to facilitate the proposed SCR.

On the rationale for the proposed SCR, Daiman Development said the group may be required to defer its property launches and that the gestation period for its property development projects would be longer.

“As a result, the carrying cost for the group could potentially be higher and there is no certainty that the company can continue declaring and paying consistent dividends like those in the past,” it said.
In addition, the group said the trading liquidity of its shares has been very low with an average daily trading volume of 32,218 for the past three years.