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5170 SCABLE - Getting ready for major projects
by Cals Tue 09 Apr 2013, 11:34
Getting ready for major projects
Business & Markets 2013
Written by theedgemalaysia.com
Tuesday, 09 April 2013 10:11
A + / A - / Reset
Sarawak Cable Bhd
(April 8, RM1.46)
Maintain buy at RM1.51 with a revised target price of RM2 (from RM2.02): We maintain “buy” on Sarawak Cable, with a tweaked lower sum-of-parts-derived fair value of RM2 (versus RM2.02 previously).
The company has proposed a one-for-two renounceable rights issue of 77.625 million shares for RM1 per share and a subsequent one-for-five bonus issue of 46.575 million shares.
The entire exercise is expected to be completed in the third quarter of the year. Sarawak Cable’s paid-up capital now stands at RM77.625 million, comprising 155.25 million shares of 50 sen each.
The rights price is at a 21.9% discount to the theoretical ex-rights price of RM1.28 based on the five-day weighted average market price up to April 3 of RM1.42.
The company will procure written undertakings from substantial shareholders Sarawak Cable chairman Datuk Seri Mahmud Abu Bekir Taib, CEO Toh Chee Ching; Sarawak Energy Bhd, Central Paragon Sdn Bhd and Yek Siew Liong to subscribe in full their respective entitlements.
As at March 22, 2013, they collectively held 107.14 million shares, representing 69.01% of the company’s paid-up capital. Any rights shares not taken up will be fully underwritten.
About 86% or RM66.6 million of the proceeds will be used for working capital and capital expenditure within 24 months, while 13% or RM10 million will be used to pare down borrowings, which totalled RM123 million as at end-December 2012, for a net debt-equity ratio of 0.6 times.
Sarawak Cable said 75% of the working capital portion would be for existing and future projects in the power utility industry, including turnkey/engineering/fabrication projects, while the remaining would be used for the procurement of raw materials.
Sarawak Cable’s prospects are inextricably linked to the implementation of Sarawak’s proposed 500kV backbone power line, which has been long delayed. Its transmission package is reportedly worth about RM1 billion. Sarawak Cable has been tipped to win the project. — AmResearch, April 8
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Business & Markets 2013
Written by theedgemalaysia.com
Tuesday, 09 April 2013 10:11
A + / A - / Reset
Sarawak Cable Bhd
(April 8, RM1.46)
Maintain buy at RM1.51 with a revised target price of RM2 (from RM2.02): We maintain “buy” on Sarawak Cable, with a tweaked lower sum-of-parts-derived fair value of RM2 (versus RM2.02 previously).
The company has proposed a one-for-two renounceable rights issue of 77.625 million shares for RM1 per share and a subsequent one-for-five bonus issue of 46.575 million shares.
The entire exercise is expected to be completed in the third quarter of the year. Sarawak Cable’s paid-up capital now stands at RM77.625 million, comprising 155.25 million shares of 50 sen each.
The rights price is at a 21.9% discount to the theoretical ex-rights price of RM1.28 based on the five-day weighted average market price up to April 3 of RM1.42.
The company will procure written undertakings from substantial shareholders Sarawak Cable chairman Datuk Seri Mahmud Abu Bekir Taib, CEO Toh Chee Ching; Sarawak Energy Bhd, Central Paragon Sdn Bhd and Yek Siew Liong to subscribe in full their respective entitlements.
As at March 22, 2013, they collectively held 107.14 million shares, representing 69.01% of the company’s paid-up capital. Any rights shares not taken up will be fully underwritten.
About 86% or RM66.6 million of the proceeds will be used for working capital and capital expenditure within 24 months, while 13% or RM10 million will be used to pare down borrowings, which totalled RM123 million as at end-December 2012, for a net debt-equity ratio of 0.6 times.
Sarawak Cable said 75% of the working capital portion would be for existing and future projects in the power utility industry, including turnkey/engineering/fabrication projects, while the remaining would be used for the procurement of raw materials.
Sarawak Cable’s prospects are inextricably linked to the implementation of Sarawak’s proposed 500kV backbone power line, which has been long delayed. Its transmission package is reportedly worth about RM1 billion. Sarawak Cable has been tipped to win the project. — AmResearch, April 8
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