May5th-Companies in the news Sumatec, R&A, MAA Group, F&N, Kobay, Nexgram and Daibochi

by **Cals** Thu 05 May 2016, 07:31

Companies in the news

[size=28]Sumatec, R&A, MAA Group, F&N, Kobay, Nexgram and Daibochi

By Meena Lakshana / theedgemarkets.com | May 4, 2016 : 10:34 PM MYT

KUALA LUMPUR (May 4): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Thursday, May 5) could include the following: Sumatec, R&A, MAA Group, F&N, Kobay, Nexgram and Daibochi.

Sumatec Resources Bhd and Singapore-listed Hoe Leong Corp Ltd will own shipping-based special purpose vehicle (SPV) Semua Shipping Sdn Bhd (SSSB), which will then be sold to R&A Telecommunication Group Bhd in exchange for new R&A shares.

Bursa Malaysia's Practice Note 17 (PN17) entity R&A has proposed to buy the entire stake in SSSB, which owns six product tankers with long-term charters with Shell Malaysia, for RM150 million for its corporate revamp.

R&A told Bursa it would issue new R&A shares at 10 sen each to Sumatec and Hoe Leong.

R&A said it had signed a non-binding term sheet with Semua International Sdn Bhd for the proposed acquisition of SSSB.

Under the deal, Semua International will transfer its entire SSSB stake to the SPV, which will be owned by shareholders Sumatec and Hoe Leong in similar shareholding proportions.

Sumatec and Ebony Ritz Sdn Bhd each hold a 49% stake in Semua International while Hoe Leong holds the remaining 2% stake.

Hoe Leong owns a controlling 80% stake in Ebony Ritz. Auspicious Journey Sdn Bhd holds 20% in Ebony Ritz.

MAA Group Bhd is selling its 75%-owned subsidiary, MAA Takaful Bhd, to Zurich Insurance Co Ltd for RM393.75 million cash.

In a filing with Bursa, MAA Group said assuming that the proposed disposal is completed on Dec 31, 2015, MAA Group expects to record a pro forma non-recurring gain on disposal of RM289.5 million.

Solidarity Group Holding BSC, which holds the remaining 25% equity interest in MAA Takaful, will also be disposing of its stake to Zurich for RM131.25 million.

The group received approval from the Finance Ministry for the proposed disposal, vide Bank Negara Malaysia's letter dated April 27.

MAA Group said after the completion of the disposal, the board is proposing to declare an interim special dividend of 35 sen per MAA Group share, amounting to approximately RM100.8 million, on an entitlement date to be determined and announced later.

MAA Group said the proposed disposal provides an opportunity for it to unlock and realise the value of its investment at an attractive valuation amid an increasingly competitive insurance and takaful sector.

Fraser & Neave Holdings Bhd's (F&N) net profit rose 28.5% to RM90.57 million or 24.7 sen per share in the second financial quarter ended March 31, 2016 (2QFY16) from RM70.49 million or 19.3 sen per share a year ago, on higher sales and better product mix.

Revenue increased 6.3% to RM999.17 million from RM939.89 million in 2QFY15.

The group declared an interim dividend of 27 sen per share, amounting to RM99 million, payable on June 15.

For the half-year period ended March 31, 2016 (1HFY16), its net profit grew 72.5% to RM242.23 million or 66.2 sen per share from RM140.43 million or 38.4 sen per share in 1HFY15.

Revenue rose 3.5% to RM2.05 billion from RM1.98 billion a year ago.

On prospects, F&N chief executive officer Lim Yew Hoe expects the market to continue to see higher trade price competition and end consumer campaigns, which will impact contribution margins.

Kobay Technology Bhd plans to undertake an internal group reorganisation via inter-companies' disposal of its entire stake in four of its wholly-owned units to another wholly-owned subsidiary, Lipo Corp Sdn Bhd, for RM18.8 million.

In a filing with Bursa, Kobay said the exercise will allow for better managing and control of the manufacturing activities under the same portfolio.

Kobay said it entered into a shares sale agreement to dispose of its stake in Polytool Technologies Sdn Bhd, Maker Technologies Sdn Bhd, Bend Weld Engineering Sdn Bhd and Omni Value Chain Sdn Bhd with Lipo.

The total cash consideration that would be raised by Lipo is by way of issuance of 5.63 million ordinary shares of RM1 each at an issue price of RM3.35 per share, in the paid-up capital of Lipo.

Kobay said the transactions will not give rise to any gain or loss to the group but at company level, it shall record a gain from disposal of RM13.99 million after deducting the original cost of investment of RM4.8 million in the four companies.

The transactions are expected to be completed by second quarter of calendar year 2016.

Former director of Protasco Bhd Datuk Tey Por Yee has ceased to be a substantial shareholder in PN17 company R&A.

R&A said this is by virtue of his indirect shareholding via Nexgram Holdings Bhd. Nexgram disposed of 66.01 million shares in R&A at an undisclosed amount.

Tey ceased to be a substantial shareholder in Nexgram, the company he had founded, in February this year after transferring a total of 197.62 million shares or about 10.5% stake to his younger brother, Por Chen, between Feb 16 and 19 this year.

Daibochi Plastic and Packaging Industry Bhd saw its net profit grow 5.2% to RM6.51 million or 2.38 sen per share in the first quarter ended March 31, 2016 (1QFY16) from RM6.19 million or 2.27 sen per share a year ago.

Quarterly revenue was 4.1% higher at RM89.7 million, from RM86.16 million in 1QFY15, due to an increase in export sales, especially from a Thailand customer in line with its marketing campaign.

The plastic packaging manufacturer declared an interim dividend of 1.45 sen, payable on June 10.

Daibochi said it is on track to commence delivery of its new export contracts to the Australia and New Zealand market from both the second and third quarter of 2016 onwards.

It said the company has commenced the second phase of expansion of Daibochi Plastic Plant 2 with capital expenditure of approximately RM13 million.
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