rights issue


Pegasus looks to raise up to RM59m for F&B services venture

PETALING JAYA: Pegasus Heights Bhd plans to raise up to RM59 million or at least RM12 million from a renounceable rights shares with warrants issue to support its diversification into food and beverage (F&B) services and related activities.

An almost equal portion of the proceeds will also go to promotion, upgrade and maintenance of the Centerpoint Seremban as well as secure more suitable tenants to occupy the mall.

It plans to issue up to 5.99 billion rights shares together with up to 3.99 billion warrants at the rights issue price of RM0.01 per rights share on the basis of three rights shares for every one share held, with two warrants for every three right shares subscribed.

Pegasus currently does property management consultancy for property development and owns and operates Centrepoint Seremban.

The company said should it be able to raise RM59 million from the rights issue, it will allocate RM14 million to pay off term loans and bank overdrafts.

Pegasus intends to manage and operate up to eight F&B franchise outlets on the ground floor level of the mall to enhance the overall tenant mix and increase footfall in Centerpoint Seremban.

It expects the enhanced tenant mix and increased footfall in Centerpoint Seremban will ultimately encourage more tenants to operate in the mall and improve occupancy rates and yield of the mall.

The company has confirmed licenseeship for two F&B franchisors, which is subject to execution of the respective franchise/license agreements, and is in advance discussions with another six F&B franchisors with regard their respective franchises.

The board of Pegasus expects the F&B franchise outlets business will enhance overall tenant mix and increase footfall in Centerpoint Seremban and also provide it with an additional stream of income and diversify its earnings base.

It will seek shareholders approval for the diversification plan.

The stock closed unchanged at 2.5 sen with some 9.79 million shares traded.

Sapura Energy shares slip in early trade

KUALA LUMPUR, Nov 8 — Sapura Energy Bhd lost half-a-sen per share to 36.5 sen in the early trade today, amid its plan to seek shareholders’ approval for a proposed rights issue to raise RM4 billion. At 9.38am, 19.2 million shares were…

Bumi Armada says it’s not in default risk

PETALING JAYA: Bumi Armada Bhd management said the group is not in a default risk despite pushing back its US$500 million (RM2.09 billion) debt restructuring plan to the first half of 2019( 1H19), according to UOB Kay Hian.

It was reported that Bumi Armada has missed its proposed October deadline to restructure the US$500 million worth of unsecured short-term loans due in three tranches by May 2019.

The group also has short-term debts of RM2.22 billion and RM1.95 billion debts that are ring-fenced around FPSO Kraken, which can be reclassified into long-term debts.

In maintaining a “buy” call on Bumi Armada with a target price of 66 sen, the research house said it does not anticipate the group to sink into the red and takes a wait-and-see approach towards 2019 on expectations for it to resolve its balance sheet issues.

UOB Kay Hian quoted Bumi Armada management as saying that the group is working with lenders and there are no defaults or any deadlines in the current renegotiation of extending the refinancing of short-term loans. It is also not considering an equity fund raising, and will not secure any projects in the near term until it resolves the balance sheet.

“Bumi Armada has no intention to go for a rights issue as it is pursuing other options – refinance, EMTN (Euro medium-term notes) or trust (infrastructure funds) – to raise funds. A rights issue at the current price would not raise much money and would further erode share price.”

While current risk-reward is palatable, the research house said stock sentiments will continue to be weak on balance sheet concerns and earnings confidence issue.

UOB Kay Hian also does not expect further major unexpected negative surprises in the earnings of the floating, production, storage and offloading (FPSO) segment after a cut in earnings forecasts earlier in view of potential downside to offshore marine service earnings in 2019.

Bumi Armada’s share price gained 1.3% to close at 39.5 sen today with 10.95 million shares changing hands.

Sapura Energy seeks shareholder approval for RM4b rights issue

KUALA LUMPUR, Nov 7 — Sapura Energy Bhd will hold an extraordinary general meeting (EGM) here on November 29 to seek shareholders’ approval for its proposed rights issue to raise RM4 billion. In a circular to shareholders, the company proposes…

UMW’s share price down after takeover plans hits the brakes

PETALING JAYA: UMW Holdings Bhd’s share price fell as much as 1.68% this morning to RM4.67 after deciding not to pursue its takeover offer for a 50.07% stake in MBM Resources Bhd and a 10% equity interest in Perusahaan Otomobil Kedua Sdn Bhd (Perodua).

At 10.51 am the stock was trading at RM4.70 with 89,600 shares done.

The board has decided to allow the MBM offer and Perodua offer to lapse and not to further extend the period for the offers.

With the lapse of both offers, UMW will not be pursuing the proposed acquisitions, mandatory takeover offer and rights issue, according to its filings with the stock exchange.

UMW's takeover offer period for MBM and Perodua ended today.

UMW had previously extended the MBM and Perodua offers by six months from April 30, despite MBM's major shareholders Med-Bumikar Mara Sdn Bhd and Central Shore Sdn Bhd reiterating their rejection of the takeover bid for RM501 million or RM2.56 per share as it is “not reasonable”.

Med-Bumikar and Central Shore, which collectively own a 50.07% stake in MBM, are a major stumbling block to UMW's plans to take the company private. The jewel in MBM is its 22.58% stake in Perodua.

UMW president & group CEO Badrul Feisal Abdul Rahim said given the current business environment, the group has recalibrated its corporate strategy in line with its on-going transformation efforts and will focus on improving its financial performance.

UMW slams brakes on proposed acquisitions of MBM Resources, Perodua

Europe, Asia back free trade in face of Trump’s ‘America first’

BRUSSELS, Oct 20 — More than 50 European and Asian leaders backed free trade and the fight against climate change yesterday in a veiled swipe at US President Donald Trump and his increasingly protectionist approach. As disputes fester with…

Merkel calls for free trade as EU, Asia meet

BRUSSELS, Oct 19 — German Chancellor Angela Merkel issued a rallying call for free trade today as EU and Asian leaders met to unite in defiance of US President Donald Trump’s “America first” approach. As disputes fester with Washington, the…

MNC Wireless, SPNB Dana extend deadline for joint venture

PETALING JAYA: MNC Wireless Bhd and SPNB Dana Sdn Bhd have agreed to take another three months to set up a business to provide short-term loans for down payments and differential sums for SPNB Dana affordable housing projects.

In October 2017, MNC Wireless and SPNB signed a subscription and shareholder agreement (SSA) to form a 30:70 equity JV company for the venture.

They have until Jan 23, 2019 to move forward.

Previously, MNC Wireless said it plans to undertake a cash call exercise via a rights issue with free warrants to raise up to RM20 million to subscribe to redeemable preference shares of the JV company.

This will allow SPNB Dana to provide short-term financing of downpayments and/or differential sums for eligible homebuyers of housing developments developed by SPNB and its group of companies.

Sapura Energy suffers RM126m net loss in Q2

PETALING JAYA: Sapura Energy Bhd suffered a net loss of RM126.06 million for the second quarter ended July 31, 2018 compared with a net profit of RM28.93 million a year ago, due to lower contribution from the engineering and construction and drilling business segments.

In a filing with Bursa Malaysia, the group said its revenue for the quarter fell 23.94% to RM1.26 billion from RM1.66 billion a year ago.

The engineering and construction segment recorded a pre-tax loss of RM20.5 million compared with a pre-tax profit of RM126.7 million recorded a year ago.

The drilling segment’s pre-tax loss, however, narrowed to RM58.3 million from RM85 million due to the favourable impact from the lower depreciation costs as a result of an asset impairment exercise in the fourth quarter of FY18.

Meanwhile, the exploration and production segment’s pre-tax profit rose 24.3% to RM27.8 million, driven by higher liftings and higher average realised oil and gas price achieved.

For the six months ended July 31, 2018, Sapura Energy registered a net loss of RM261.79 million compared with a net profit of RM56.46 million a year ago while revenue for the period fell 32.43% to RM2.31 billion from RM3.43 billion a year ago.

Commenting on prospects, the group said it is well-positioned to capitalise on the recovery in the industry, amidst sustained and buoyant oil price that is driving increase in activities globally.

It noted the upward trend in bidding and prospective opportunities globally have translated into increased contract wins during the year.

For the financial year to-date, the group has won RM5.3 billion of new contracts across its engineering and construction and drilling businesses, which has resulted in the group’s orderbook increasing to RM16.9 billion.

“The growing orderbook provides the platform for increasing revenue and higher utilisation of the group’s assets in the future,” it said.

Sapura Energy has also proposed a RM4 billion rights issue as part of its strategic plan to boost its financial position. The rights issue has received support from three major shareholders namely Permodalan Nasional Bhd (PNB), Kumpulan Wang Persaraan and Sapura Technology Sdn Bhd.

The corporate exercise, which may see PNB Group emerging as the largest single shareholder, is expected to place Sapura Energy on a stronger footing to continue its growth momentum.

At 3.15pm, Sapura Energy's share price was trading 1.5 sen or 3.5% lower at 41 sen with 128.54 million shares changing hands.