DBE’s director had disposed of 12 million shares on Jan 18, 2012. Ding Seng Huat had disposed of the shares representing a 1.78% stake at an average price of 8.0 sen each. To recap, DBE confirmed that it was in talks with a shareholder of CIH which includes a private placement exercise. DBE also said it had plans for a private placement to raise funds for its working capital requirement but it was at preliminary stage.
Sources say three parties are interested to take over DBE Gurney Resources Bhd, a poultry breeder, in a bid to return the company to profitability. Besides CI Holdings Bhd, the other parties interested in DBE are Datuk Raymond Chan Boon Siew, the controlling stakeholder of Sagajuta ( Sabah ) Sdn Bhd, and Maybank Private Equity. Chan, a prominent Sabah developer, has been buying shares in DBE from the open market and now controls about 4.0 per cent stake of the company.
Showing posts with label DBE. Show all posts
Showing posts with label DBE. Show all posts
Sunday, February 5, 2012
Tuesday, October 11, 2011
DBE/QSR/QL
There are already plans for OSK Investment Bank to sell the stake to another poultry related firms as DBE does not add synergistic value to the investment bank.
Potential buyers are said to be include companies such as QSR Brands and QL.
Its rm12 million from the rights issue will be used to repay its debts. This will decrease its gearing to 0.8 times.
DBE has a full poultry integration system, with breeder farms, hatcheries, broilers and processing plants. About 30% of its chickens are supplied to Tesco, 5% to KFC outlets and the rest to restaurants and hotels in Perak. However DBE has been making losses since FY2006.
However market talk that QSR & QL had turned down the offer
OSK Holdings Bhd’s wholly owned subsidiary OSK Investment Bank Bhd (OSKIB) has emerged as the single largest shareholder of poultry outfit DBE Gurney Resources Bhd, with 180.99 million shares or 26.88% of DBE’s enlarged issued share capital.
Its holding surpassed DBE executive chairman Datuk Ding Chong Chow whose interests via vehicle Fortune Junction Sdn Bhd amount to 25.52%.
OSKIB had ended up with the DBE shares as it had undertaken all unsubscribed shares in DBE pursuant to a renounceable rights issue exercise. The rights issue, which involved 400 million new shares of 10 sen each in DBE, with 200 million free detachable warrants, had only received 52% acceptances from DBE shareholders at the close of acceptance on March 17 2011.
As the underwriter for the rights issue, OSKIB had taken up the rest of the unsubscribed rights shares and is now sitting on some RM10.9 million paper profits. It is estimated that OSKIB’s subscription cost for the 180.99 million DBE shares was RM18.1 million, based on the issue price of 10 sen per rights share.
Apart from the said number of shares, OSKIB had also received 90.5 million free DBE warrants from the rights issue.
It is worth wondering what could be in store for Perak-based DBE, which had been loss-making over the past four financial years.
As at FY10 ended Dec 31, DBE had racked up accumulated losses of RM40.91 million. Meanwhile, total borrowings amounted to RM72.6 million as at Dec 31 versus RM116,000 cash.
Nevertheless, the company had managed to narrow its losses, from RM9.79 million in FY08 and RM18.73 million in FY08, to RM2.9 million and RM202,000 in FY09 and FY10 respectively. Operationally, there was also a significant improvement in its operating profit before working capital changes, which rose to RM13.09 million in FY10 from RM9.52 million in FY09.
The completion of the rights issue may put DBE on a stronger financial footing. Of the RM40 million proceeds , the company plans to set aside RM25.9 million as working capital while RM12 million will be earmarked to repay its bank loans.
DBE had also said it planned to boost the utilisation rate of its existing plant to improve on its profitability.
Potential buyers are said to be include companies such as QSR Brands and QL.
Its rm12 million from the rights issue will be used to repay its debts. This will decrease its gearing to 0.8 times.
DBE has a full poultry integration system, with breeder farms, hatcheries, broilers and processing plants. About 30% of its chickens are supplied to Tesco, 5% to KFC outlets and the rest to restaurants and hotels in Perak. However DBE has been making losses since FY2006.
However market talk that QSR & QL had turned down the offer
OSK Holdings Bhd’s wholly owned subsidiary OSK Investment Bank Bhd (OSKIB) has emerged as the single largest shareholder of poultry outfit DBE Gurney Resources Bhd, with 180.99 million shares or 26.88% of DBE’s enlarged issued share capital.
Its holding surpassed DBE executive chairman Datuk Ding Chong Chow whose interests via vehicle Fortune Junction Sdn Bhd amount to 25.52%.
OSKIB had ended up with the DBE shares as it had undertaken all unsubscribed shares in DBE pursuant to a renounceable rights issue exercise. The rights issue, which involved 400 million new shares of 10 sen each in DBE, with 200 million free detachable warrants, had only received 52% acceptances from DBE shareholders at the close of acceptance on March 17 2011.
As the underwriter for the rights issue, OSKIB had taken up the rest of the unsubscribed rights shares and is now sitting on some RM10.9 million paper profits. It is estimated that OSKIB’s subscription cost for the 180.99 million DBE shares was RM18.1 million, based on the issue price of 10 sen per rights share.
Apart from the said number of shares, OSKIB had also received 90.5 million free DBE warrants from the rights issue.
It is worth wondering what could be in store for Perak-based DBE, which had been loss-making over the past four financial years.
As at FY10 ended Dec 31, DBE had racked up accumulated losses of RM40.91 million. Meanwhile, total borrowings amounted to RM72.6 million as at Dec 31 versus RM116,000 cash.
Nevertheless, the company had managed to narrow its losses, from RM9.79 million in FY08 and RM18.73 million in FY08, to RM2.9 million and RM202,000 in FY09 and FY10 respectively. Operationally, there was also a significant improvement in its operating profit before working capital changes, which rose to RM13.09 million in FY10 from RM9.52 million in FY09.
The completion of the rights issue may put DBE on a stronger financial footing. Of the RM40 million proceeds , the company plans to set aside RM25.9 million as working capital while RM12 million will be earmarked to repay its bank loans.
DBE had also said it planned to boost the utilisation rate of its existing plant to improve on its profitability.
Wednesday, September 7, 2011
JIT News - DBE, YTL Land/YTL Power .... 31/3/2011
DBE: OSK’s wholly owned subsidiary OSK Investment Bank Bhd has emerged as the single largest shareholder of DBE with 26.88% of DBE’s enlarged issued share capital. As at FY2010 ended Dec 31, DBE had racked up accumulated loses of RM40.91 million. Meanwhile, total borrowings amounted to RM72.6 million as at Dec 31 versus rm116000 cash. The completion of the rights issue may put DBE on a stronger financial footing. Of the rm40 million proceeds, the company plans to set aside rm25.9 million as working capital and rm12 million will be earmarked to repay its bank loans.
YTL Land/YTL Power: YTLand has the biggest exposure to the potential MRT interchange at 66% of realisable net asset value via Sentul (119 acres), KL Sentral (five acres) and Bukit Bintang (5 acres). YTLP, which has a 21-year PPA with TNB until 2015, has a positive potential extension for its first generation PPA as a power plant in operation is better than an idle one. However concerns are over its lower internal rate of return from the power purchase agreement (PPA) extension.
YTL Land/YTL Power: YTLand has the biggest exposure to the potential MRT interchange at 66% of realisable net asset value via Sentul (119 acres), KL Sentral (five acres) and Bukit Bintang (5 acres). YTLP, which has a 21-year PPA with TNB until 2015, has a positive potential extension for its first generation PPA as a power plant in operation is better than an idle one. However concerns are over its lower internal rate of return from the power purchase agreement (PPA) extension.
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