FBM30 1594.10 -9.02 pts ( 0.56%) Volume 1.05b Value RM1.48b
1) The KLSE retraced, weighed down by concerns on China's
growth prospects & Germany's hardened resistance to Euro-area debt sharing
before European leaders meet later this week. Sentiment was weak through the
sessions, with the index drifting downwards to close near day's low of 1593.8
pts. The Technology sector +0.62% bucked the trend, led by JCY+2.03%, UNISEM+0.7%. The broader market was negative,
with losers overwhelming gainers 472:274. Futures closed 1591 pts (
3.1 pts disc).
2) Heavyweights: YTL-2.9% RM2.00, GAMUDA-2% RM3.50,
PPB-1.9% RM15.74, MRCB-1.6% RM1.81, AXIATA-1.1% RM5.44, GENTING-1.1% RM9.44,
PCHEM-1.1% RM6.45, TOPGLV+1.2% RM5.18, MHB+0.9% RM5.28.
3) DBT: AGLOBAL 4.7m @ RM0.14, KURASIA 3m @ RM0.63 -
RM0.635, TM 1.7m @ RM5.70.
4) Situationals:
TOPGLOVE +1.2% RM5.18 : after Co announced that it was
buying PT Agro Pratama Sejahtera from 5 sellers representing 95% of total
issued & paid up shares. PT Agro is chiefly involved in rubber forest
plantation, with land measuring almost 30,773 ha in Province of Kepulauan
Bangka Belitung, Indonesia. The deal is expected to be completed within 15
months.
MUHIBBAH -1.6% RM1.20 : Co announced that it will be
injecting it's fabrication yard in New South Wales, Australia into Favelle
Favco Bhd (FFB) for AUD15m ( RM48m). The total consideration will
be satisfied with the issue of 31.7m new shares of 50s each in FFB. Muhibbah
currently has 55.57% equity stake in FFB, will increase to 62.25% following the
sale. The 4.68ha property is locate in Preston, NSW.
5) UMW
Announce that UMW Drilling 4 Ltd ("UMW D4"), a wholly-owned
subsidiary of UMW Petropipe (L) Ltd, which in turn, is a wholly-owned
subsidiary of UMW, has today entered into a Share Purchase Agreement with S.D. Standard Drilling Plc for the acquisition of the entire
shareholding of SD in Offshore Driller B324 Ltd , for a consideration of
USD70.0 million and further for the assignment of all rights and interests
under the Construction & Sale Agreement entered into between OD B324 and
Keppel Fels Limited on 17th December 2010, for the construction of a 400 feet B
Class mobile offshore self-elevating drilling unit with hull no. B324 ,
inclusive of all equipment and spares belonging to the Rig whether on board,
ashore or on order as may be delivered by Keppel under the CSA, for a
consideration of USD144.0 million.
The total consideration arising from the Proposed
Acquisition is USD214.0 million. The Rig is currently being constructed and is expected to
be completed and delivered by February 2013. In consideration of the SPA and the payment of USD1.00,
SD agreed to grant to UMW D4, the option to purchase the entire issued and
paid-up capital of a Special Purpose Vehicle ("SPV") company, which
holds the rights and interests under a Vessel Construction Agreement
("VCA") entered into between the SPV and Keppel, for the construction
of a jack-up rig, inclusive of all equipment and spares belonging to the rig
under the VSA, whether on board, ashore or on order, at a consideration
estimated at USD212.0 million.
The option shall be exercised by UMW D4, on or before
27th September 2012. UMW D4, however, has not made any decision to exercise the
option at this point in time.
The Proposed Acquisition is in line with the UMW Group's
plan to raise revenue and profit contributions from the Oil & Gas Division.
The Rig will enhance the assets portfolio of UMW Oil & Gas that would be
offered to its clients, apart from the existing assets (including that of
drilling rigs, workover rigs as well as semi-submersible rigs) currently in its
stable. It will also facilitate UMW Oil & Gas' expansion
specifically in Malaysia and globally. +ve as the management has already made known their desire
to increase revenue contribution to the group from past year of 11.6%
to 20-25% in the future to help counter the cyclical nature of their auto
business.
6) Market - We continue to encourage clients to take this
opportunity to trim exposure at these record high levels in view of the
uncertainties that lie ahead , in particular the key Euro meeting this week.
