MRCB/Ekovest: MRCB together with Ekovest are likely to be awarded a portion of the Klang Valley beautification project from the government. It was previously reported that the valued is at a potential rm8 billion. A rm5 billion rehabilitation and development plan for the Klang Valley river was announced by the government as part of the ETP.
MasterSkill: For the year ended Dec 31, 2010, its net profit rose to rn102.4 million or 33 sen per share with a historical PER of 5.6 times. Revenue increased to rm315 million. As at Dec 31, 2010 the company had net cash of rm99.41 million and net assets per share of rm1.27.
MasterSkill: 4.90 (HDBS), 2.47 ( Alliance ), 3.59 (OSK), 4.48 (CIMB)
Transmile faces suspension with effect from March 3 and delisting on March 7 2011 for failing to submit a regularisation plan to the regulators for approval by Feb 22 2011. It failed to submit the revamp plan to Securities Commission or Bursa Malaysia Securities by the Feb 22 2011 deadline. However, it has until March 2 2011 to submit an appeal to Bursa Securities. If it submits an appeal to Bursa Securities within the appeal timeframe, the removal of the securities will be deferred pending the decision on the company’s appeal.
S P Setia Bhd’s proposed private placement of new shares of up 15% of its paid-up to existing major shareholders (also a proposed bonus issue on a one-for-two basis after the placement) will enable the property developer to raise about RM1 billion. The corporate exercise would enable S P Setia to raise funds with minimal dilution to the company’s share capital base. The private placement would involve a bookbuilding exercise which includes a roadshow involving about 30 global funds.
Ramunia: Ramunia Energy and Marine Corp Sdn Bhd disposed of 13.5 million Ramunia Holdings Bhd from Feb 16 to 21 2011. A filing with Bursa Malaysia showed its stake was reduced to 59.62 million shares or 8.99% after the disposal of the shares. Ramunia Energy sold 3.5 million shares on Feb 16 2011 and two million shares the next day. On Feb 18 2011, it disposed of one million shares and seven million shares on Feb 21. It was trading between 67 and 68.5 sen during the period.
Ranhill: It is not ready to say anything about its operations in Libya as it is unsure of the situation in the country. Ranhill is involved in a US$1.2 billion (RM3.66 billion) Tajura Housing Project, which involves the design and construction of 10,680 units of residential apartments in Tripoli , Libya . The project, due for completion in February 2013, was contracted by the Housing and Infrastructure Board of the Libyan Government to Amona Ranhill Consortium, a Ranhill subsidiary.
Showing posts with label MRCB. Show all posts
Showing posts with label MRCB. Show all posts
Sunday, August 14, 2011
Thursday, August 11, 2011
What’s NEXT! MRCB
MRCB
What’s NEXT! … dated Feb 2011
It is looking to expand its landbank given that it has only 12 acres left in its flagship KL Sentral development.
According to sources, MRCB is in “advanced negotiations” for a sizable parcel of land in Petaling Jaya, although details are still unknown. Indications are (that) an acquisition is likely by end-2011.
Outside the Klang Valley , the group is vying for land along the Eastern Dispersal Link (EDL) in Iskandar Malaysia , Johor, and in Terengganu. Funding is not an issue given the RM200 million balance of proceeds from the rights issue.
MRCB is also said to be eyeing another five to six acres of land near Brickfields, Kuala Lumpur , following its recent acquisition of an acre near Jalan Kia Peng at RM750 psf for a high-rise development.
It posted net profit of RM42 million on revenue of RM433 million for the quarter on stronger margins. For FY10, its earnings nearly doubled year-on-year to RM67.3 million on revenue of RM1.07 billion.
The construction player and property developer is thought to be poised to participate in the mega development of the 3,300-acre Rubber Research Institute of Malaysia land in Sungai Buloh.
It was widely regarded that MRCB, together with IJM Land Bhd, which shares a common substantial shareholder in the Employees Provident Fund (EPF), would combine forces to jointly participate in developing certain parcels of the land, which will be allocated to the EPF by the government.
The two had announced a proposed merger at the end of 2010, although the deal fell through. However, the parties have not ruled out the possibility of future collaborations.
Meanwhile, MRCB also announced that it was targeting RM1 billion in orderbook replenishment in FY11, coming from its environmental projects in Kuala Sungai Pahang and Perai, Penang, as well as civil works on the mass rapid transit (MRT) and light rail transit (LRT) lines.
Besides the LRT and MRT contracts, which most contractors are vying for, MRCB is the frontrunner for the RM300 million Penang Sentral project, for which the sweetener is the eventual development of the surrounding land.
The other project is the Klang River cleanup project - the MRCB-Ekovest JV is rumoured to be close to securing the award worth RM1 billion to RM2 billion for just the initial stage. The project to clean up and develop Klang river ( River of Life project) was estimated to be worth around RM8 billion to RM10 billion with Phase 1 estimated at RM1 billion to RM2 billion.
Its earnings surged 230% to RM41.50 million for the fourth quarter ended Dec 31, 2010 from RM12.41 million a year ago, boosted by improved profit margin and property development projects.
Revenue rose 53.7% to RM433.12 million from RM281.67 million. It proposed a dividend of 1.5 sen per share.
For the financial year ended Dec 31, 2010, its earnings jumped 94% to RM67.27 million from RM34.62 million. Revenue rose to RM1.967 billion from RM921.62 million.
Its cash and cash equivalents rose to RM487.27 million from RM232.57 million.
The commendable result for the current quarter was mainly contributed by improved profit margin coupled with advanced stage of activities of its engineering and construction ongoing works and property development projects at Kuala Lumpur Sentral.
The higher operational margin was achieved on the back of crystallization of its ongoing value engineering and efficient project supervision and cost saving initiatives.
The higher revenue was contributed mainly from its construction and engineering division with ongoing work progress reaching maturity stage at relatively higher percentage of recognition compared to previous year.
The same impact was also contributed by the group’s ongoing property development projects at Kuala Lumpur Sentral.
It posted losses of RM1.26 million in the third quarter ended Sept 30, 2010 on the back of RM5.12 million in revenue. However, its net assets per share were RM1.21. It was in deficit of RM2.94 million as at end September while its short-term borrowing totalled RM12.03 million.
Saturday, August 6, 2011
JIT News - PLUS/UEM Group, MMC Corp/PLUS, MRCB/Wkovest,SAAG.. 11/1/2011
PLUS/UEM Group: Only the joint venture of UEM Group Bhd and the Employees Provident Fund (EPF) has remitted the cash deposit of RM50 million in their joint offer to take over for RM23 billion offer or RM4.60 per share. UEM and the EPF has also submitted a letter from their financiers with regards to UEM and EPF’s financial ability to undertake and complete their proposed acquisition of PLUS' business. Apart from UEM and the EPF, "there are no new offers received by PLUS".
MMC Corp: MMC Corp Bhd has not received any indication from government on its proposal to acquire PLUS Expressways. It will make the relevant announcement to Bursa Malaysia as and when there is a material development in relation to this proposal. MMC had also said then it would lead a consortium for the proposed acquisition but it had not approached Employees Provident Fund and/or Permodalan Nasional Berhad to be its partners.
MRCB/Ekovest: MRCB and Ekovest Bhd say they have not received any letter of award from the government for a Klang Valley river project. The project could be worth RM8 billion.
SAAG: Its subsidiary has secured a US$78 million (RM239.54 million) contract from Mrails Tram (Melaka) Sdn Bhd to design and build 40 km of tramway in Melaka. Its overseas subsidiary OGS Asiapac Ltd had secured the design, engineering, procurement, construction and commissioning (EPCC) contract on Dec 23 2010. Mrails Tram is incorporated in Malaysia and it had signed a principal agreement with the Chief Minister of Malacca (Incorporation) on March 3 2010 for a 25 year concession with the Malacca government to provide 40 km of tramway in the state capital to enhance the public transport facilities.
MMC Corp: MMC Corp Bhd has not received any indication from government on its proposal to acquire PLUS Expressways. It will make the relevant announcement to Bursa Malaysia as and when there is a material development in relation to this proposal. MMC had also said then it would lead a consortium for the proposed acquisition but it had not approached Employees Provident Fund and/or Permodalan Nasional Berhad to be its partners.
MRCB/Ekovest: MRCB and Ekovest Bhd say they have not received any letter of award from the government for a Klang Valley river project. The project could be worth RM8 billion.
SAAG: Its subsidiary has secured a US$78 million (RM239.54 million) contract from Mrails Tram (Melaka) Sdn Bhd to design and build 40 km of tramway in Melaka. Its overseas subsidiary OGS Asiapac Ltd had secured the design, engineering, procurement, construction and commissioning (EPCC) contract on Dec 23 2010. Mrails Tram is incorporated in Malaysia and it had signed a principal agreement with the Chief Minister of Malacca (Incorporation) on March 3 2010 for a 25 year concession with the Malacca government to provide 40 km of tramway in the state capital to enhance the public transport facilities.
What’s NEXT! MRCB/IJM Land
MRCB/IJM Land
What’s NEXT! … dated Jan 2011
According to sources, both companies are said to be taking another look at the merger plan, which if successful would create Malaysia ’s second largest property player.
Also, given that both companies have a substantial shareholder in the form of EPF, which holds 41.95% in MRCB and an effective 19.8% stake in IJM Land , there are still synergistic benefits to be reaped from any future property projects they embark on together.
Although both parties have kept mum on why the deal was aborted, market talk is that both MRCB and IJM were unable to settle on some of the terms laid out in the preliminary agreement.
However, IJM Land ’s MD Datuk Soam does not rule out the possibility of working with MRCB JV capacity rather than one that involves the merging of the two companies. Also he said that IJM Land does not rule out any future M&A possibilities.
MRCB however, declined to comment on the matter.
One of the future projects that both companies could eventually participate in is the EPF’s development of the massive RRIM land in Sungai Buloh. Spanning 3300 acres, it is expected to be a huge project for the EPF, hence any plans that the fund has for it will be watched closely.
Already, MRCB is said to be assisting the EPF in drawing in the master plan for the area together with other parties. Industry players say it is likely that the EPF will offer some portions of the RRIM land for open tender while some could be parceled out via direct negotiations.
It is such a key project that the EPF would want only property developers with experience in building larger townships to assist, but all within its master plan. But given the sheer size of the project, it is unlikely that it will take off in the very near future. It could be at least around two years before things start to move on the ground for the RRIM land. After the master plan has been decided, it still takes time to gain approval from the authorities before any building can start.
MRCB’s prospects for future growth are strongly linked to the EPF’s plans for the RRIM land as well as its KL Sentral development.
The crystallization of the prime KL Sentral land is also progressing well. Currently, MRCB and its partners are developing about RM4 billion worth of office and retail buildings. The group is also looking at expanding its development, eyeing 20 acres of land nearby, although this is not expected to happen in the immediate future.
What’s Up? … dated Jan 2011
The falling through of the proposed merger between MRCB and IJM Land Bhd could be a blessing in disguise for the former.
For the shareholders of MRCB, a merger at a later date could mean a better deal. This is presuming MRCB’s valuation could be further enhanced once its role in the Rubber Research Institute of Malaysia (RRIM) land is firmed up. The aborted plans may work out to be a blessing in disguise in favour of MRCB.
MRCB is widely regarded as the front runner in securing the lead developer role, if not a major participation, in the development of the 3,300-acre RRIM land in Sungai Buloh. This is by virtue of the fact that the Employees Provident Fund (EPF) — which has been granted the mandate to develop the RRIM land — is MRCB’s controlling shareholder with a 41.63% equity interest.
For the EPF to maximise its returns from the RRIM land, MRCB in which the retirement fund holds a significant interest has to play a major role.
If the merger talks were to be reignited after it is being firmed up that MRCB would have a major role in the RRIM land, the latter’s shareholders — which include the EPF — would benefit from a higher swap ratio against IJM Land shares.
The “RRIM land factor” was not “well reflected” in the indicative price of RM2.30 per MRCB share in the merger with IJM Land . IJM Land was valued at RM3.65 per share in the aborted exercise.
What’s NEXT! … dated Jan 2011
According to sources, both companies are said to be taking another look at the merger plan, which if successful would create Malaysia ’s second largest property player.
Also, given that both companies have a substantial shareholder in the form of EPF, which holds 41.95% in MRCB and an effective 19.8% stake in IJM Land , there are still synergistic benefits to be reaped from any future property projects they embark on together.
Although both parties have kept mum on why the deal was aborted, market talk is that both MRCB and IJM were unable to settle on some of the terms laid out in the preliminary agreement.
However, IJM Land ’s MD Datuk Soam does not rule out the possibility of working with MRCB JV capacity rather than one that involves the merging of the two companies. Also he said that IJM Land does not rule out any future M&A possibilities.
MRCB however, declined to comment on the matter.
One of the future projects that both companies could eventually participate in is the EPF’s development of the massive RRIM land in Sungai Buloh. Spanning 3300 acres, it is expected to be a huge project for the EPF, hence any plans that the fund has for it will be watched closely.
Already, MRCB is said to be assisting the EPF in drawing in the master plan for the area together with other parties. Industry players say it is likely that the EPF will offer some portions of the RRIM land for open tender while some could be parceled out via direct negotiations.
It is such a key project that the EPF would want only property developers with experience in building larger townships to assist, but all within its master plan. But given the sheer size of the project, it is unlikely that it will take off in the very near future. It could be at least around two years before things start to move on the ground for the RRIM land. After the master plan has been decided, it still takes time to gain approval from the authorities before any building can start.
MRCB’s prospects for future growth are strongly linked to the EPF’s plans for the RRIM land as well as its KL Sentral development.
The crystallization of the prime KL Sentral land is also progressing well. Currently, MRCB and its partners are developing about RM4 billion worth of office and retail buildings. The group is also looking at expanding its development, eyeing 20 acres of land nearby, although this is not expected to happen in the immediate future.
What’s Up? … dated Jan 2011
The falling through of the proposed merger between MRCB and IJM Land Bhd could be a blessing in disguise for the former.
For the shareholders of MRCB, a merger at a later date could mean a better deal. This is presuming MRCB’s valuation could be further enhanced once its role in the Rubber Research Institute of Malaysia (RRIM) land is firmed up. The aborted plans may work out to be a blessing in disguise in favour of MRCB.
MRCB is widely regarded as the front runner in securing the lead developer role, if not a major participation, in the development of the 3,300-acre RRIM land in Sungai Buloh. This is by virtue of the fact that the Employees Provident Fund (EPF) — which has been granted the mandate to develop the RRIM land — is MRCB’s controlling shareholder with a 41.63% equity interest.
For the EPF to maximise its returns from the RRIM land, MRCB in which the retirement fund holds a significant interest has to play a major role.
If the merger talks were to be reignited after it is being firmed up that MRCB would have a major role in the RRIM land, the latter’s shareholders — which include the EPF — would benefit from a higher swap ratio against IJM Land shares.
The “RRIM land factor” was not “well reflected” in the indicative price of RM2.30 per MRCB share in the merger with IJM Land . IJM Land was valued at RM3.65 per share in the aborted exercise.
Industry observers believe that a contributing factor was the pricing for MRCB’s concession assets. (They) were to be rationalised and absorbed by IJM Corp Bhd ( IJM Land ’s parent) and would make up the potential cash payout on top of the swap price of RM2.30 for MRCB. The reference price for IJM Land was set at RM3.65.
The termination of the merger deal is less negative for MRCB given its lower valuation for the swap price.
Finally with MRCB and IJM Land both having the EPF as a common major shareholder, it is inevitable that both will enter into future partnerships or contemplating another merger again. Whether the next merger would be more favourable to MRCB or IJM Land would naturally depend on where EPF has the higher stake.
The termination of the merger deal is less negative for MRCB given its lower valuation for the swap price.
Finally with MRCB and IJM Land both having the EPF as a common major shareholder, it is inevitable that both will enter into future partnerships or contemplating another merger again. Whether the next merger would be more favourable to MRCB or IJM Land would naturally depend on where EPF has the higher stake.
What’s Up? Ekovest/MRCB
Ekovest/MRCB
What’s Up? … dated Jan 2011
Sources say Ekovest together with MRCB is on the verge of receiving a letter of award from the government for a portion of the Klang Valley cleaning project.
It will be a joint venture between MRCB and Ekovest, with that portion worth a potential RM8 billion. It could potentially involve some 80 acres, specially on the WP side of the Klang River . The river itself spans 120 km, with 40 km under the purview of the federal government and the remaining 80 km under the Selangor government.
MRCB-Ekovest is very close to getting the award, with an announcement on the matter expected to be made soon.
The government had announced the Klang River clean up, which forms part of a RM15 billion rehabilitation and development plan for the river, under the Economic Transformation Programme.
It could potentially cost rm3 billion for sewerage and sullage management and rm533 million for drainage and flow management to transform the state of the Klang Valley .
The name that was previously linked to the river cleaning project is YTL Corp and I-Bhd.
What’s Up? … dated Jan 2011
Sources say Ekovest together with MRCB is on the verge of receiving a letter of award from the government for a portion of the Klang Valley cleaning project.
It will be a joint venture between MRCB and Ekovest, with that portion worth a potential RM8 billion. It could potentially involve some 80 acres, specially on the WP side of the Klang River . The river itself spans 120 km, with 40 km under the purview of the federal government and the remaining 80 km under the Selangor government.
MRCB-Ekovest is very close to getting the award, with an announcement on the matter expected to be made soon.
The government had announced the Klang River clean up, which forms part of a RM15 billion rehabilitation and development plan for the river, under the Economic Transformation Programme.
It could potentially cost rm3 billion for sewerage and sullage management and rm533 million for drainage and flow management to transform the state of the Klang Valley .
The name that was previously linked to the river cleaning project is YTL Corp and I-Bhd.
JIT News - MRCB/Ekovest,MMC/PLUS,Maybank/OSK,Key West,KPS,IJMLand/MRCB,Hap Seng.. 10/1/2011
Ekovest/MRCB: Sources say Ekovest together with MRCB is on the verge of receiving a letter of award from the government for a portion of the Klang Valley cleaning project. MRCB-Ekovest is very close to getting the award, with an announcement on the matter expected to be made soon. The other name that was previously linked to the river cleaning project is YTL Corp and I-Bhd.
MMC Corp/PLUS: Sources say MMC Corp Bhd is likely to emerge the third bidder. MMC is still in the running to acquire PLUS. Even before the RM26bil Jelas Ulung Sdn Bhd bid came in, MMC had proposed the idea to the Government.
Maybank/OSK: On whether Maybank was still keen to acquire OSK Holdings Bhd as speculated earlier, Maybank had scanned the market for potential acquisitions, and eventually found that Kim Eng was the best option to spur Maybank’s regional expansion.
Key West: Key West Global Telecommunications Bhd has seen the emergence of a new substantial shareholder in Goh Mei Yuin, who acquired 12.32 million shares, or a 9.13% stake in the company.
KPS/Puncak Niaga/KHSB/JAKS: Puncak Niaga management will review the offer documents from the Selangor State Government over the latter's new offer to the four beleaguered water concessionaires in Selangor for RM9 billion.
IJM Land/MRCB: IJM Land does not rule out the possibility of working with MRCB JV capacity rather than one that involves the merging of the two companies. Also IJM Land does not rule out any future M&A possibilities.
MMC Corp/PLUS: Sources say MMC Corp Bhd is likely to emerge the third bidder. MMC is still in the running to acquire PLUS. Even before the RM26bil Jelas Ulung Sdn Bhd bid came in, MMC had proposed the idea to the Government.
Maybank/OSK: On whether Maybank was still keen to acquire OSK Holdings Bhd as speculated earlier, Maybank had scanned the market for potential acquisitions, and eventually found that Kim Eng was the best option to spur Maybank’s regional expansion.
Key West: Key West Global Telecommunications Bhd has seen the emergence of a new substantial shareholder in Goh Mei Yuin, who acquired 12.32 million shares, or a 9.13% stake in the company.
KPS/Puncak Niaga/KHSB/JAKS: Puncak Niaga management will review the offer documents from the Selangor State Government over the latter's new offer to the four beleaguered water concessionaires in Selangor for RM9 billion.
IJM Land/MRCB: IJM Land does not rule out the possibility of working with MRCB JV capacity rather than one that involves the merging of the two companies. Also IJM Land does not rule out any future M&A possibilities.
Meanwhile located directly behind the mature Kota Kemuning township, the Canal City will turn IJM Land into one of the leading township developers in the Klang Valley . The company is now sorting out some land and project planning matters with the Selangor Government.
Hap Seng: The company recently raised its shareholding by acquiring the company’s shares on the open market. The move triggered speculation about a privatization exercise by the Lau family, which took its flagship company Lei Shing Hong Ltd private in 2008. And in July 2009, the family privatized MMOSAICS.
Its MD Datuk Lee said that Privatization is the prerogative of the shareholders. If the shareholders do not see value in a listed entity, at the end of the day, why keep it listed if it is undervalued all the time. Nonetheless, given the rally in Hap Seng’s share price recently, its privatization would certainly cost a bundle if it were done now (Jan 2011).
Hap Seng: The company recently raised its shareholding by acquiring the company’s shares on the open market. The move triggered speculation about a privatization exercise by the Lau family, which took its flagship company Lei Shing Hong Ltd private in 2008. And in July 2009, the family privatized MMOSAICS.
Its MD Datuk Lee said that Privatization is the prerogative of the shareholders. If the shareholders do not see value in a listed entity, at the end of the day, why keep it listed if it is undervalued all the time. Nonetheless, given the rally in Hap Seng’s share price recently, its privatization would certainly cost a bundle if it were done now (Jan 2011).
Friday, August 5, 2011
JIT News - Petra, IJM Land/MRCB, Maybulk/Hubline ... 4/1/2011
Petra Energy/Petra Perdana: Sources say Petra Energy Bhd is close to securing a rm100 million contract from Murphy Oil for hook up and commissioning works. It is learnt that Petra Energy Bhd could make an announcement to the local bourse soon after ironing out a few minor issues. Petra Energy is 29% owned by Petra Perdana.
Target Price: 1.21 (OSK), 1.92 (CIMB), 0.98 (CIMB), 1.26 (ECM)
IJM Land/MRCB: Despite the termination of merger talks between IJM Land and MRCB, prospects of both MRCB and IJM Land are still upbeat. In fact, industry observers said the aborted plans may work out to be a blessing in disguise in favor of MRCB. MRCB is well regarded as the front runner in securing the lead developer role, if not a major participation in the development of the 3300 acre RRIM land in Sungai Buloh. This is by virtue of the fact that the EPF is MRCB’s controlling shareholder with a 41.63% stake.
For EPF to maximize its returns from the RRIM Land , MRCB holds a significant interest has to play a major role. If the merger talks were to be reignited after it is being firmed up that MRCB would have a major role in the RRIM land, the latter’s shareholders – which include the EPF – would benefit from a higher swap ratio against IJM Land shares.
While details on why the deal fell through remain doubts at this stage, it is believed that a contributing factor was the pricing for MRCB’s concession assets. They were rationalized by IJM Land and would make up the potential cash payout on top of the swap price of rm2.30 for MRCB. The ref price for IJM Land was set at rm3.65. The termination of the merger deal is less negative for MRCB given its lower valuation for the swap price.
However, optimists did not expect this would not be the end to possible future partnerships between the two entities. With MRCB and IJM Land having the EPF as a common major shareholder, it is inevitable that both will enter into future partnerships or contemplating another merger again.
Maybulk/Hubline: The Baltic Dry Index (BDI) a barometer of global shipping prices for the dry bulk cargoes including coal, iron ore, and grain fell 41% to 1773 points on year end 2010 compared with a high of 2995 in Sept 2010. The dwindling demand for dry bulk cargo such as iron ore and an oversupply of vessels have resulted in lower charges for transporting these items. This has lent credence to expectations that dry bulk shipping companies profitability in the near future could be under threat as vessel capacity supply grows faster than the growth in dry bulk cargo consumption.
Target Price: Maybulk: 2.70 (CIMB), 3.70 (OSK)
Target Price: 1.21 (OSK), 1.92 (CIMB), 0.98 (CIMB), 1.26 (ECM)
IJM Land/MRCB: Despite the termination of merger talks between IJM Land and MRCB, prospects of both MRCB and IJM Land are still upbeat. In fact, industry observers said the aborted plans may work out to be a blessing in disguise in favor of MRCB. MRCB is well regarded as the front runner in securing the lead developer role, if not a major participation in the development of the 3300 acre RRIM land in Sungai Buloh. This is by virtue of the fact that the EPF is MRCB’s controlling shareholder with a 41.63% stake.
For EPF to maximize its returns from the RRIM Land , MRCB holds a significant interest has to play a major role. If the merger talks were to be reignited after it is being firmed up that MRCB would have a major role in the RRIM land, the latter’s shareholders – which include the EPF – would benefit from a higher swap ratio against IJM Land shares.
While details on why the deal fell through remain doubts at this stage, it is believed that a contributing factor was the pricing for MRCB’s concession assets. They were rationalized by IJM Land and would make up the potential cash payout on top of the swap price of rm2.30 for MRCB. The ref price for IJM Land was set at rm3.65. The termination of the merger deal is less negative for MRCB given its lower valuation for the swap price.
However, optimists did not expect this would not be the end to possible future partnerships between the two entities. With MRCB and IJM Land having the EPF as a common major shareholder, it is inevitable that both will enter into future partnerships or contemplating another merger again.
Target Price: IJM Land : 3.88 (ECM), 3.50 (RHB), 3.88 (AmResearch), 3.20 (Credit Suisse)
MRCB: 2.90 (HDBS), 1.96 (RHB), 2.30 (OSK)
MRCB: 2.90 (HDBS), 1.96 (RHB), 2.30 (OSK)
Maybulk/Hubline: The Baltic Dry Index (BDI) a barometer of global shipping prices for the dry bulk cargoes including coal, iron ore, and grain fell 41% to 1773 points on year end 2010 compared with a high of 2995 in Sept 2010. The dwindling demand for dry bulk cargo such as iron ore and an oversupply of vessels have resulted in lower charges for transporting these items. This has lent credence to expectations that dry bulk shipping companies profitability in the near future could be under threat as vessel capacity supply grows faster than the growth in dry bulk cargo consumption.
Target Price: Maybulk: 2.70 (CIMB), 3.70 (OSK)
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