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.
Showing posts with label QL. Show all posts
Showing posts with label QL. Show all posts
Tuesday, October 11, 2011
Sunday, August 7, 2011
JIT News - SP Setia,Hing Yiap,SelProp,Tenaga,QL.. 18/1/2011
SP Setia: It has confirmed securing 40 acres of prime land along Jln Bangsar. It also announced a fund raising exercise via a proposed placement of 15% of new shares to be done via book building that could easily raise rm1.14 billion. The fund raising comes tandem with a one for two bonus issue.
Assuming a plot ratio of four to five times and an average selling price of rm1200 psf, the gross development value of the Bangsar land would amount to rm8 billion to rm10 billion. Assumes also that SP Setia has a 50% to 60% stake in the project, the surplus value from the land at a net cost of rm700 million for the 1NIH Complex alone would be around rm550 million or 48 sen per share, boosting the revised net asset value to rm6.21.
SP Setia: 7.23 (OSK), 8.00 (CIMB), 6.90 (MBB), 4.94 (Inter Pacific), 8.05 (RHB), 5.50 (Kenanga), 6.80 (AMResearch), 5.20 (ECM)
Hing Yiap: It has received an unconditional takeover from Everest Hectre Sdn Bhd to acquire all the remaining shares for rm1.500 per share.
Selangor Properties: It is potentially poised to be one of the beneficiaries of the Greater Klang Valley MRT project. Currently it has a 34 acre developable land bank and 1.2 million sq ft office space in Pursat Bandar Damansara, where an MRT interchange could possibly be developed. It is in good position to bid for the MRT interchange at Pusat Bandar Damansara to be located in its site.
The group is majority owned by Kayin Holdings Sdn Bhd which holds 66.3% interest. Its cash and cash equivalent amounted to rm598 million as at Oct 2010, against debts of rm397 million. This means that it was sitting on a net cash position of almost rm200 million. It had not undertaken any equity fund raising exercise over the past decade. It has a book value of rm5.12.
Industry observers are of the view that since some of Selangor’s assets are ripe for revaluation, the shares’ prevailing discount to its book value could become even wider … A research house said the strongest RNAV growth over the next three to five years is expected to hit rm11.71 per share by then based on land value appreciation. Given its strategic land bank, attractive valuation and concentrated shareholding, it could be a potential M&A or JV target or privatization candidate.
Assuming a plot ratio of four to five times and an average selling price of rm1200 psf, the gross development value of the Bangsar land would amount to rm8 billion to rm10 billion. Assumes also that SP Setia has a 50% to 60% stake in the project, the surplus value from the land at a net cost of rm700 million for the 1NIH Complex alone would be around rm550 million or 48 sen per share, boosting the revised net asset value to rm6.21.
SP Setia: 7.23 (OSK), 8.00 (CIMB), 6.90 (MBB), 4.94 (Inter Pacific), 8.05 (RHB), 5.50 (Kenanga), 6.80 (AMResearch), 5.20 (ECM)
Hing Yiap: It has received an unconditional takeover from Everest Hectre Sdn Bhd to acquire all the remaining shares for rm1.500 per share.
Selangor Properties: It is potentially poised to be one of the beneficiaries of the Greater Klang Valley MRT project. Currently it has a 34 acre developable land bank and 1.2 million sq ft office space in Pursat Bandar Damansara, where an MRT interchange could possibly be developed. It is in good position to bid for the MRT interchange at Pusat Bandar Damansara to be located in its site.
The group is majority owned by Kayin Holdings Sdn Bhd which holds 66.3% interest. Its cash and cash equivalent amounted to rm598 million as at Oct 2010, against debts of rm397 million. This means that it was sitting on a net cash position of almost rm200 million. It had not undertaken any equity fund raising exercise over the past decade. It has a book value of rm5.12.
Industry observers are of the view that since some of Selangor’s assets are ripe for revaluation, the shares’ prevailing discount to its book value could become even wider … A research house said the strongest RNAV growth over the next three to five years is expected to hit rm11.71 per share by then based on land value appreciation. Given its strategic land bank, attractive valuation and concentrated shareholding, it could be a potential M&A or JV target or privatization candidate.
Tenaga: Its earnings for the first quarter of its financial year ending Aug 31 (FY11) is expected to fall due to lingering concerns of rising coal prices.
QL: It has completed the book building exercise for the offering of 20.83 million new shares pursuant to its private placement exercise to raise rm116.6 million, It has been fixed at rm5.60 per placement share.
QL: It has completed the book building exercise for the offering of 20.83 million new shares pursuant to its private placement exercise to raise rm116.6 million, It has been fixed at rm5.60 per placement share.
Subscribe to:
Posts (Atom)