M&ACentury Logistics confirms Edge report, says “exploring corporate exercise” with Felda

by **Cals** Thu 13 Mar 2014, 19:18

M&ACentury Logistics confirms Edge report, says “exploring corporate exercise” with Felda

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Thursday, 13 March 2014 19:07

KUALA LUMPUR (March 13): Century Logistics Holdings Bhd says it is exploring a potential corporate exercise with the Felda group.

The company told Bursa Malaysia this in response to an article entitled “Felda group eyeing Century Logistics?” appearing in The Edge Financial Daily on 13 March 2014.

“After due enquiry with our board of directors, we wish to inform that the company is exploring a potential corporate exercise with the Felda group though nothing conclusive has been agreed upon,” it said.

In a separate announcement, Felda Ventures Holdings Bhd said it is “always exploring potential mergers and acquisitions to support its growth strategy.”

“The company wishes to state here that it is evaluating several proposals to enhance its value chain. With regard to Century Logistics Holdings Berhad, nothing conclusive has been agreed and/or decided upon.”

The Edge Financial Daily today reported that talks between the plantation giant and Century’s largest shareholder Datuk Richard Phua Sin Mo, who has a 26.4% equity stake in Century Logistics, have been ongoing for some time now.

As at yesterday’s close of RM2.65, Phua’s 26.4% stake or 30.8 million shares had a market value of RM80.3 million.

Felda and its units are eyeing Century Logistics to enable it have a supply chain for its various businesses.

Phua, who is the founder of the Century Logistics group, turns 65 this year and is said to be looking to retire if he can get a good price for his shares.

Century’s stock has been on the rise lately and is at a multi-year high. The company’s stock closed at RM2.68 today, inching up three sen after hitting a high of RM2.76 in earlier trades.

As at end December last year, Century had net asset per share of some RM2.09.