Oct 16th - Stocks To Watch Bright Packaging, Ho Hup, Insas, AirAsia X, IHH, Zelan, UEM, MNC Wireless

by **Cals** Tue 15 Oct 2013, 08:48

Stocks To Watch Bright Packaging, Ho Hup, Insas, AirAsia X, IHH, Zelan, UEM, MNC Wireless

Business & Markets 2013

Written by Ho Wah Foon of theedgemalaysia.com

Monday, 14 October 2013 19:54

KUALA LUMPUR (Oct 14): Based on corporate announcements, stocks that may stir up excitement on Wednesday could include Bright Packaging, Ho Hup, Insas, AAX, IHH, Zelan, UEM and MNC Wireless.

The local stock market will be closed tomorrow for holiday as the nation celebrates Hari Raya Haji.

Bright Packaging Industry Bhd plans to raise about RM47.6 million, through a rights issue with free warrants, to purchase two new production lines.

The capital expected to be raised is based on the indicative issue price of RM0.55 per rights share. This means that the rights share is priced at a 59% discount to Friday’s closing price of RM1.22 per unit.

In an announcement to Bursa Malaysia, the company said: "We intend to raise funds by proposing a renounceable rights issue of 86.59 million new ordinary shares of 50 sen each, on the basis of two rights shares for every one existing share held.

"This is together with 57.71 million free detachable warrants, on the basis of two warrants for every three rights shares subscribed.

"The management intends to reward shareholders who have stood by the company and supported recent management changes, by offering the rights share at a 59% discount to last Friday’s closing price of RM1.22," it added.

Ho Hup Construction Company Bhd announced that its substantial shareholder Datuk Thong Kok Khee had on Oct 9, Oct 10 and Oct 11 bought some 2.38 million shares in the company.

These purchases, via Insas Bhd, helped to raise Thong’s indirect stake in Ho Hup to 7.82% (equivalent to 7.978 million shares).

Last week, the financially-stressed construction company announced that its lengthy restructuring was nearly over and exit from PN17 status was in sight as creditors and shareholders had approved a proposed restructuring exercise involving a capital reduction, a rights issue and a scheme to pay its creditors.

The corporate exercise is expected to be completed by the end of November and Ho Hup plans to apply to Bursa Malaysia to have the PN17 status lifted.

AirAsia X Bhd (AAX) has received approval from Thailand’s Transport Ministry for an air operator licence (AOL).

The airline, in a statement today, said its associate company Thai AirAsia X Co Ltd has officially received the approval for the AOL on October 8, 2013.

“The final approval of the Air Operators Certificate is expected by end of 2013, after which the company will be able to commence operations,” it added.

This is a step closer for AirAsia X to realise its first international hub outside Kuala Lumpur in the first quarter of 2014, it noted.

CEO Azran Osman-Rani said in the statement Thai AirAsia X will capitalise on its collaboration with Thai AirAsia, the largest short-haul low-cost carrier in Thailand.

He opined that Thai AirAsia X expects to significantly grow tourist arrivals to Thailand.

IHH Healthcare Bhd announced that its managing director Dr Lim Cheok Peng will step down as the managing director (MD) of the company effective December 31, 2013.

The company’s executive director Dr Tan See Leng will be promoted as the new MD and CEO of the company with effect from January 1, 2014, according to IHH’s announcement to Bursa today.

“Dr Lim has confirmed that he has no disagreement with the board and that there are no matters relating to his cessation of office as the MD that need to be brought to the attention of the shareholders of the company,” it said.

Lim’s stepping down is part of the transition plan to be undertaken by the company, IHH added.

According to IHH’s announcement, Tan has over 20 years of experience in the healthcare industry. He was appointed as executive director in April last year.

Zelan Bhd announced that it has disposed 2.608 million shares in IJM Corporation Bhd on Oct 11 via a direct business transaction at an average disposal price of RM5.78 per share for RM15,027,817.

It said the gain on the disposal at group level was about RM4.2 million while at the company level was about RM5.9 million.

“This would contribute positively to the company's earnings per share,” Zelan said, adding the proceeds will be primarily used to pay bank borrowings and improve the company’s gearing position.

The latest IJM share sale was part of the company’s strategy to realise funds to pay bank borrowings and the derivative financial liability incidental to the repayment of the bank borrowings.

The company obtained shareholders' mandate for the disposal of up to 56,671,000 ordinary shares of RM1.00 each in IJM on Sept 30, 2013. Zelan, which has started to dispose its IJM shares since June this year, has so far sold off 22.133 million shares in IJM.

UEM Sunrise Bhd marked its maiden venture into the Australian market by acquiring two prime freehold land parcels in Melbourne, Australia, Bernama reported.

Managing Director/Chief Executive Officer Datuk Wan Abdullah Wan Ibrahim said the Australian market is one of the key countries under its strategic regional expansion plan.

These land parcels -- covering 3,197 sq. m. on LaTrobe Street and about 2,030 sq. m. on Mackenzie Street -- are in two of the city's hotspots, and have existing commercial tenancies.

They will be redeveloped as premium residential developments with a retail component, infused with arts and culture to achieve a vibrant and edgy mixed-use community within the developments.

MNC Wireless Bhd informed the stock exchange that based on legal advice, a recent requisition by two shareholders to convene an EGM to oust five current directors is “invalid”.

On Sept 26, MNC Wireless said its board of directors had received a requisition to convene an EGM from shareholders Ho Jo Hun and Yap Sheau Chiann to remove five directors and to appoint four new directors.

The company said today it has received legal advice that the requisition by Ho and Yap to convene an EGM pursuant to Section 144 of the Companies Act 1965 “is invalid as it does not comply with Section 144”.

Hence, it said the requirement to convene an EGM pursuant to Section 144 is not triggered.

On Sept 26, Ho and Yap, who have stated that they are the shareholders collectively holding 9,567,800 shares of MNC Wireless or 10.13% stake, are seeking to remove from the board Yeoh Eng Kong, Choo Wai Kit, Gerald Nicholas Tan Eng Hoe, Lionel Koh Kok Peng and Lee Kam Chun.

In addition, they are seeking to appoint Ho Jo Hun, Yap Sheau Chian, Chew Wai Peng and Ghee Tse Wei to the board of the ACE Market-listed mobile applications developer.