Sources say Royal Dutch Shell plc has shortlisted five potential bidders for its downstream LPG business in Peninsular Malaysia.
It is learnt that the shortlisted companies are BStead, KUB, LTAT (Ramunia/Alam Maritim) KKB and IPS.
The disposal is similar to Shell divesting its LPG business in other parts of Asia in concentrating on the upstream business.
BH Petroleum, a wholly owned subsidiary of BStead Holdings, is said to be the favorite in the shortlist, based on its reach and brand presence. BStead is said to be trying to grow its petroleum related businesses, including LPG. Contributions from the petroleum business has yet to play a significant role in the group earnings,
The other strong contender is said to be Sarawak based KKB Engineering. If KKB wins the bid, it would have a significant presence in the LPG business where Shell is one of the top two LPG distributors in Malaysia .
KUB has an LPG distribution business that is based mainly in East Malaysia . However, the distribution is small and not a significant contributor to the company’s overall business.
As for LTAT, it has some interests in the O&G business via Ramunia Bhd and a JV with Alam Maritim Bhd. However, these listed companies are involved in the upstream O&G industry. Also, Ramunia does not have a core business and it would beneficial for LTAT if it were to purchase the Shell LPG business.
The dark horse is IPS as the former Shell chairman Datuk Saw is one of its directors.
Sunday, October 9, 2011
Saturday, October 1, 2011
MPHB/MWE..
Investors will now be watching if diversified MPHB acts according to expectations or springs another surprise.
The moves to transform into a pure gaming company may soon result in the divestment of MPHB’s non core assets such as its stockbroking, general insurance and hospitality businesses.
The company plans to raise up to rm1 billion from the disposal of non core assets. The best tack for the company is now to wait for the right time to seek the highest possible for its non core assets.
MPHB has not won over many investors because its non core businesses have had little earnings visibility. But should it embark on a divestment programme, investors would have more confidence in the company and this will lead to a re rating of the stock. This will unlock cash from the businesses, leaving MPHB an NFO counter.
It is worth noting that MPHB Surin also owns a 32.48% indirect state in another listed entity. MWE Holdings Bhd, which is also fairly diversified in nature. MWE has businesses covering garments, electronics, a golf and country club, plantation and properties. Surin’s non independent non executive director and had served as MD of its spinning mills division in 1974.
Three other MWE directors also have served at MPHB or its subsidiaries, namely MWE executive director Lim Kong Yew, independent non executive director Lawrence Lam who is currently Magnum Corp Sdn Bhd’s CEO and Datuk Yogesvaran who also sits on the board of Muli-Purpose Insurans.
Multi Purpose Insurans is one of MWE’s 30 top largest shareholders, with a 3.45% stake equity stake while MPHB itself owns a 1.29% stake.
Industry observers says that MWE may be a convenient place to house MPHB’s property division, as there are no immediately apparent synergies between MPHB’s stockbroking and insurance businesses with MWE’s own divisions.
The moves to transform into a pure gaming company may soon result in the divestment of MPHB’s non core assets such as its stockbroking, general insurance and hospitality businesses.
The company plans to raise up to rm1 billion from the disposal of non core assets. The best tack for the company is now to wait for the right time to seek the highest possible for its non core assets.
MPHB has not won over many investors because its non core businesses have had little earnings visibility. But should it embark on a divestment programme, investors would have more confidence in the company and this will lead to a re rating of the stock. This will unlock cash from the businesses, leaving MPHB an NFO counter.
It is worth noting that MPHB Surin also owns a 32.48% indirect state in another listed entity. MWE Holdings Bhd, which is also fairly diversified in nature. MWE has businesses covering garments, electronics, a golf and country club, plantation and properties. Surin’s non independent non executive director and had served as MD of its spinning mills division in 1974.
Three other MWE directors also have served at MPHB or its subsidiaries, namely MWE executive director Lim Kong Yew, independent non executive director Lawrence Lam who is currently Magnum Corp Sdn Bhd’s CEO and Datuk Yogesvaran who also sits on the board of Muli-Purpose Insurans.
Multi Purpose Insurans is one of MWE’s 30 top largest shareholders, with a 3.45% stake equity stake while MPHB itself owns a 1.29% stake.
Industry observers says that MWE may be a convenient place to house MPHB’s property division, as there are no immediately apparent synergies between MPHB’s stockbroking and insurance businesses with MWE’s own divisions.
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