FBMKLCI
1770.35 +1.32pts (+0.07%)
Volume 1.867b Value 1.576b
1) The KLCI were positive with index trading in a 5
points range as investors remains cautious as US government goes through a
partial shutdown due to disagreement of public finances. Regional markets pared
its gains with NIKKEI -2.17% falling after PM Shinzo Abe's stimulus plan to
cushion the first tax hike since 1997 was disappointing. In the local market,
trades were choppy while bluechips stocks such as SKPETRO +1.05%, CIMB-0.26%
and DIGI +0.20% were actively traded. Market breadth was positive with gainers
edging pass losers by 380: 368. Futures closed 1768 (2 points discount)
2) Heavyweights : BAT -2.64% RM62.50, UMW -1.54% RM11.50,
CIMB -0.26% RM7.48, PBBANK +0.34% RM17.72, KLK +1.32% RM22.90, SKPETRO +1.05%
RM3.85, PETGAS +0.82% RM22.00, HLBANK +1.43% RM14.14.
3) DBT : UNICO 348.8mil @ RM1.17 (40.558% PUC, Stake sale
to IOICORP), EAH 16.221mil @ RM0.095 (3.815% PUC @ 27% discount), SERSOL
4.835mil @ RM0.73 (2.509% PUC @ 19.6% premium)
4) Situational:-
HSL +0.543% RM1.85 - Hock Seng Lee has received a LOA
from the Ministry of Industrial Development Sarawak for infrastructure projects
at Demak Laut Industrial Park in Kuching division valued at RM53.6m. The scope
of work includes site cleaning, earthworks and filling, drainage and drainage
structure, road works, water reticulation works and related works. The contract
period is 24 months and the project will be due to completion in the third
quarter of 2015
BSTEAD -0.194% RM5.14 - Boustead Naval Shipyard Sdn Bhd
has received an amended letter of acceptance from the Defence Ministry with the
value fixed at RM9bn contract to build six vessels for the navy. The contract
would be to build and deliver six second-generation patrol vessels with
combatant capabilities for period of 10 years starting 29 Dec 2011 and a
further advance payment of RM700m will be paid in stages to BN Shipyard.
5) IOIC
IOI Plant a wholly owned sub of IOIC today announced that
they have acquired 339 million Unico Shares, representing approximately 39.55%
of the PUC for a total cash consideration of RM396.63 million, which is
equivalent to RM1.17/share. The Acquisition was effected via direct business
transaction with the Vendors (4 major shareholders of Unico) IOI Plant is
obligated to extend a mandatory take-over offer to acquire all the remaining
Unico Shares not already held by the Offeror amounting 60.45% of the issued and
paid-up share capital of Unico at a cash offer price of RM1.17 per Offer Share.
The plantations held by Unico are located in Lahad Datu and Kinabatangan, Sabah
with a matured area of 9,121 hectares. Based on the audited consolidated
financial statements of Unico for the financial year ended 31 March 2013, the
net profit and net assets of Unico group of companies was approximately RM729.8
million.
The purchase consideration of RM1.17 per Unico Share for
the Acquisition was arrived at on a willing buyer-willing seller basis after
taking into consideration the audited NA per Unico Share of RM0.85 as at 31
March 2013, the potential future earnings of Unico and potential synergistic
benefits arising from the Acquisition to IOI
Corp and its subsidiaries. The Acquisition is in line
with IOI Corp Group's plans to expand its oil palm business, whereby IOI Corp
Group's plantation land bank will increase by 13,660 hectares or approximately
7.5% from its present 183,207 hectares to 196,867 hectares. The Acquisition
will allow IOI Corp Group to have immediate access and a controlling ownership
over Unico's established plantation operations located in Sabah. This is
expected to bring synergistic benefits to the IOI Corp Group as the IOI Corp
Group has an existing 98,088 hectares of oil palm planted area in Sabah. The
MGO is subject to the following 50% Acceptance Condition pursuant to Section
17(2), Part VI of the Code;
+ve As the
acquisition is at a fair price of RM73,00/ha on a FFB yield of 23.8MT/ha which
is considerably better than IOIC ealier failed attempt to acquire DutaLand's
Sabah platations at RM69,00/ha but only yielding 15MT/ha.
6) Market - Rotation on mid caps to continue as blues
maintain consolidation phase.
