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).
The share price of KHB, on the other hand, has soared from 55 sen on 2 January 2018 to 84 sen on 20 February 2018, a day prior to the suspension of KHB shares for the announcement of the Proposed Disposal. This price increase represents a significant appreciation of 55.6%. We believe the sudden surge of KHB’s share price prior to the announcement of the Proposed Disposal does warrant an investigation into unusual trading activity by the regulators for possible insider trading.
KINSTEEL BERHAD (“KINSTEEL”)
Further to the Company’s announcements made on 11 May 2016, 13 May 2016, 2 December 2016 and the winding-up petition served on 22 December 2016 by Messrs T.J. Goh & Co., acting for Knusford Marketing Sdn Bhd (“KMSB”) and 29 January 2018 on the Notice pursuant to Section 218 of the Companies Act, 1965, the Board of Directors of Kinsteel announced that Kinsteel had on 13 February 2018 been served a notice of appointment of liquidator and situation of office of liquidator.
[Source: Kinsteel’s announcement on Bursa Malaysia’s website on 21 February 2018]
MSWG’S COMMENTS:
The notice of appointment of liquidator should not come as a surprise for shareholders of Kinsteel as they have known that a winding-up petition was previously served by KMSB on 22 December 2016. Shareholders are likely to feel disappointed with the latest development which puts a spanner in the works on the turnaround plan outlined by the Board of Directors of Kinsteel at the last AGM held not long ago.
There are now two urgent questions in the minds of the shareholders. They urgently want to know from the company whether:
(i) the company would be able to fend off the winding-up petition and whether it would be able to submit its restructuring plan to Bursa Malaysia on time; and
(ii) the value of total assets would be sufficient to cover total liabilities in the scenario of an eventual winding-up and if there would be any surplus available to the shareholders.
MSWG’S AGM WEEKLY WATCH 26 FEBRUARY 2018 – 2 MARCH 2018
For this week, the following are the AGMs/EGMs of companies which are in the Minority Shareholder Watchdog Group’s (MSWG) watch list.
The summary of points of interest is highlighted here, while the details of the questions to the companies can be obtained via MSWG’s website at www.mswg.org.my.
|
Date & Time |
Company |
Venue |
|
27.02.18 (Tue) |
JCY International BHd |
Grand Paragon Hotel, 18 Jalan Harimau, Taman Century, JB |
|
28.02.18 (Wed) |
Selangor Properties Bhd |
TPC Kuala Lumpur (Kuala Lumpur Golf & Country Club Berhad), Off Jalan Bukit Kiara, KL |
|
The points of interest to be raised: |
|
|---|---|
|
Company |
Points/Issues to Be Raised |
|
JCY International BHd
|
What is the current market share and what would be the expected market share for the Group for the next financial year?
|
|
Selangor Properties Bhd
|
|
MSWG’S WATCHLIST
MALAYSIA PACIFIC CORPORATION BERHAD (“MPC”)
The Board of Directors of MPC announced that the company had on 20 February 2018 received a Winding-Up Petition pursuant to Section 465 of the Companies Act 2016 (Act 777) dated 6 February 2018 from Messrs Gibb & Co. and the case management is fixed on 21 February 2018.
The company previously on 14 June 2016 received a notice of statutory demand pursuant to Section 218 of the Companies Act 1965 (Act 125) dated 8 June 2016 from Messrs Gibb & Co.
On 21 February 2018, the Court fixed the next case management on 27 March 2018.
[Source: MPC’s announcement on Bursa Malaysia’s website on 21 February 2018]
LOCAL NEWS AND DEVELOPMENTS
Final version of Trans-Pacific trade deal released, includes Malaysia
Toyo Ink surges to multi-year high, prompts Bursa query
Toyo Ink surges to multi-year high, prompts Bursa query
Malaysia's 2017 labour productivity up 3.6pct to RM81,039
https://www.nst.com.my/business/2018/02/337958/malaysias-2017-labour-productivity-36pct-rm81039
Malaysian economy grew 5.9% last year, slower pace seen this year
https://www.thestar.com.my/business/business-news/2018/02/15/steady-growth/
Malaysia’s balance of payments falls into RM13.1b deficit in 4Q17
http://www.theedgemarkets.com/article/malaysias-balance-payments-falls-rm131b-deficit-4q17
Inland Revenue Board slaps winding-up petition on Eden
http://www.thesundaily.my/news/2018/02/21/inland-revenue-board-slaps-winding-petition-eden
Maxis Communications' Aircel to file for bankruptcy in India
https://www.nst.com.my/business/2018/02/337208/maxis-communications-aircel-file-bankruptcy-india
Pressure piling on new Proton CEO
Malaysia capable of achieving GDP of RM2 trillion by 2022
Bank Negara to introduce new policies as new external risks emerge
SC charges duo for insider trading involving Johor Land shares in 2009
Four Genneva directors sentenced to jail, fined RM1m each
http://www.theedgemarkets.com/article/four-genneva-directors-sentenced-jail-fined-rm1m-each-0
Offer for Oldtown at RM3.18 a piece open till March 13
http://www.thesundaily.my/news/2018/02/20/offer-oldtown-rm318-piece-open-till-march-13
Ex-director sues Brite-Tech for alleged breach of confidence
http://www.theedgemarkets.com/article/exdirector-sues-britetech-alleged-breach-confidence
TRIplc shareholders give nod for restructuring and disposal exercise
GLOBAL NEWS AND DEVELOPMENTS
US yields rise in auctions as stocks sink; US$ recovers
China Warns It May Retaliate If U.S. Imposes Metal Tariffs
http://www.theedgemarkets.com/article/china-warns-it-may-retaliate-if-us-imposes-metal-tariffs
Three held in Punjab National Bank scandal, hit to lenders may exceed US$3b
BoJ may keep retreating from stimulus under Kuroda
US regulator warns of cryptocurrency 'pump-and-dump' schemes
SEC halts Chicago Stock Exchange sale to group led by China-based investors
In free trade U-turn, Modi raises India’s import duties
European car sales went up 6.8% in January
China remains Germany's biggest trading partner in 2017
http://www.theedgemarkets.com/article/china-remains-germanys-biggest-trading-partner-2017
Toyo Ink surges to multi-year high, prompts Bursa query
MSWG Analysts
Lya Rahman, General Manager, [email protected]
Rebecca Yap, Head, Corporate Monitoring [email protected]
Quah Ban Aik, Head, Corporate Monitoring [email protected]
Norhisam Sidek, Manager, Corporate Monitoring [email protected]
Wong Kin Wing, Manager, Corporate Monitoring, [email protected]
Hoo Ley Beng, Manager, Corporate Monitoring [email protected]
Elaine Choo, Manager, Corporate Monitoring, [email protected]
Lee Chee Meng, Manager, Corporate Monitoring [email protected]
Abdul Halim Alias, Manager, Corporate Services, [email protected]
Mustaqim Yusof, Analyst, Corporate Services [email protected]
Muhammad Faris bin Mohamed Yusof, Analyst, Corporate Monitoring [email protected]
DISCLOSURE OF INTERESTS
• With regard to the companies mentioned, MSWG holds a minimum number of shares in all these companies covered in this newsletter.
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The contents and the opinions expressed in this newsletter are based on information in the public domain and are intended to provide the user with general information and for reference only. Best efforts have been made to ensure that the information contained in this newsletter is accurate and current as at the date of publication. However, MSWG makes no express or implied warranty as to the accuracy or completeness of any such information and opinions contained in this newsletter. No information in this newsletter is intended to be or should be construed as a recommendation to buy or sell or an invitation to subscribe for any, of the subject securities, related investments or other financial instruments thereof.
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