Hot Stock Century Logistics rises on news of Felda Group acquisition

by **Cals** Thu 13 Mar 2014, 17:09

Hot Stock Century Logistics rises on news of Felda Group acquisition

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Thursday, 13 March 2014 10:19

KUALA LUMPUR (Mar 13): Century Logistics Holdings Bhd (Century) stocks rose today on news that Felda Group is currently in talks to acquire a significant stake in the company.
At 9:53 am, Century rose 6 sen or 2.3% to RM2.71 with some 1.2 million shares traded.
The Edge Financial Daily had reported today that it was given to understood that talks between the plantation giant and Datuk Richard Phua Sin Mo, Century’s largest shareholder have been ongoing for some time now.
Phua currently owns a 26.4% stake or 30.8 million shares in the company which holds a market value of RM80.3 million.
Phua, also the founder of the company who turns 65 this year is said to be looking to retire if he can get a good price for his shares.
According to the report by The Edge Financial Daily, a source familiar with the company said: “The talks are not finalized yet and are ongoing at the shareholder level, but there is nothing concrete as yet”
Felda and its units are said to be eyeing Century Logistics to enable it to have a supply chain for its various businesses.
For its FY13 ended December, Century Logistics posted a net profit of RM22.55 million on revenue of RM255.81 million. Earnings per share were marginally lower at 19.42 sen against 20.39 sen.
Better profits were a result of a gain on revaluation of investment property amounting to RM10.6 million.
For FY13, the company had issued a dividend of 11 sen per share, a 38% increase from its 8 sen in the last year.