English

26 February 2018

MSWG’S QUICK TAKE ON-ONGOING CORPORATE DEVELOPMENTS

KRETAM HOLDINGS BERHAD (“KHB”) / HAP SENG PLANTATIONS HOLDINGS BERHAD (“HSPB”)

The Board of KHB announced that KHB has been informed by its Executive Director/Chief Executive Officer and the controlling shareholder, Datuk Lim Nyuk Sang @ Freddy Lim that he had on 21 February 2018 entered into agreements with HSPB to divest his direct and indirect shareholdings in KHB (“Proposed Disposal”).

[Source: KHB’s announcement on Bursa Malaysia’s website on 21 February 2018]

MSWG’S COMMENTS:

The Proposed Disposal looks like a good deal for shareholders of KHB, as the disposal price of RM0.92 per KHB Share represents an attractive price-to-earnings ratio of 76.9 times (based on the unaudited annualised EPS of 1.2 sen as at 30 September 2017) and price-to-book ratio of 2.3 times (based on the unaudited Net Assets per Share of 40.4 sen as at 30 September 2017).

09.02.2018

VOICE OF MSWG

The local capital markets received a boost this week when a slew of new measures to stimulate market vibrancy were announced.

These included liberalising margin financing rules, allowing intraday short selling to ALL investors and introducing a new category of traders who trade on their account, known as 'Trading Specialists', the idea being of course to boost market participation.

There were also other measures, including the introduction of a volume-based incentive programme and giving new investors a fee waiver on trading and clearing fees for six months, both also designed to encourage more participation.

The PM also announced the establishment of the Malaysia-Singapore Connect, enabling stock market investors on either side of the divide to trade in the other’s capital markets seamlessly.

02.02.2018

MSWG’S QUICK TAKE ON-ONGOING CORPORATE DEVELOPMENTS

Chin Teck Plantations Berhad (“CTPB”)

CTPB held its 59th Annual General Meeting (AGM) on 30 January 2018. MSWG’s representatives attended the meeting. The meeting was opened by the Chief Financial Officer (CFO) cum Company Secretary.

MSWG’S COMMENTS:

MSWG’S QUICK TAKE ON-ONGOING CORPORATE DEVELOPMENTS

Since 1 December 2016, CTPB’s Company Secretary was also the CFO. The role of a company secretary is an important role – so important, that the requirement to have a company secretary is mandated by the Companies Act 2016. The role of a CFO is also an important role – as chief financial officer of the Company, the CFO is deemed as a director for certain provisions of the Companies Act 2016. Also, changes to the CFO are disclosure items for public dissemination under Bursa Malaysia’s Listing Requirements. Combining both these roles in a single person dilutes the relative importance of these distinctly different and challenging roles.