FBM30 1649.75
-1.28 points (-0.08%) Volume
864.8mil Value 1,744mil
1) KLCI fell to a low of 1640.44pts by midday as
plantation names came under selling pressure following recent weakness in CPO
prices. However index managed to claw back its losses paced by gains in Telcos. Regionals were mixed after Chinese services industries
expanded at the weakest pace since at least March 2011. Market breadth turned
negative with decliners outpacing advancers 434:295. Futures closed 1649.5pts
(parity).
2) Heavyweights: SIME-3.39% RM9.09, KLK-5.17% RM20.90,
IOICORP-0.8% RM4.97, DIGI+2.82% RM5.47, TENAGA+1.46% RM6.95, AXIATA+0.76%
RM6.67, TM+1.62% RM6.28, PETGAS+1.65% RM19.74,
3) DBT: DIALOG 10mil @ RM2.31, BAHVEST 8.3mil @ RM0.60,
KOSSAN 2.4mil @ RM3.03
4) Situationals:
ADVENTA+4.47% RM1.87: Glove maker Adventa had received a
takeover offer from Aspion in July where Adventa would dispose its
assets and liabilities for RM320.9mil or RM2.10 per share. Today, group has
proposed a distribution of RM1.70 per share by means of RM1.30 special dividend
and proposed capital reduction and repayment of 40 sens.
5) GW Plastic
Received an expression of interest from Scientex Berhad
to acquire the business and undertaking of GW Plastics via Scientex Packaging,
a wholly owned subsidiary of Scientex . The sale involves 88,004,400 ordinary shares of RM1.00 each in
GWPI, representing 100% equity interest in GWPI interest in GW Flexible
Packaging Sdn Bhd; and 6,000,002
ordinary shares of RM1.00 each in GW Packaging, representing 100% equity
interest in GW Packaging to Scientex Packaging for an aggregate sale
consideration of RM283.20 million.
The Disposal Consideration is equivalent to approximately
RM1.20 per share or a price-to-earnings ratio of approximately 14.49 times
based on the audited net EPS of 8.28 sen for FYE 31 December 2011; and a
price-to-book ratio of approximately 1.41 times based on the audited net assets
per share as at 31 December 2011 of 0.85.
Tentatively, it is estimated cash amount to be returned
to the entitled shareholders under the Proposed Distribution will be
approximately RM1.19 for every one (1) GW PlasticsShare (after
excluding Treasury Shares and deducting estimated expenses of RM2.0 million).
After the distribution, GW Plastics shall apply to Bursa Securities to be
delisted from the Main Market of Bursa Securities.
The offer price is a premium of 10% over the last traded
price of RM1.08. Based on the PE multiple of 14.5x which is approximately
around the sector average we deem this offer fair especially taking into
account the illiquid nature of the company.
6) Market - As we highlighted yesterday, we expect the
Plantation sector to continue to draw the most interest in the market with most
analyst likely to adjust full year forecast results which could imply lower
target valuations especially if this downtrend in CPO px are not just a
seasonal phenomenon. With this major overhang, it is unlikely the KLCI can
scale a new high above the 1655pt high achieved in early Sept.
