News - CSL, Symphony, Yinson

CSL: China has sought further extension for the issuance of its audited financial statements for the financial year ended Dec 31 2013 to July 31 2014. It is now pending the decision of Bursa. Should Bursa reject the company’s application to extend the issuance statements, the suspension of trading in the securities of CSL would be effected on July 8 2014.

Symphony: It expects to obtain the SC’s approval of the proposed RTO by Ranhill Energy Services over the next three to four months from July 2014 ... possibly obtaining all approvals by Nov or Dec 2014 and then the relisting of the new entity probably by Feb 2015.

Under the RTO exercise, Symphony will become a unit of newly incorporated SPV Ranhill Holdings Sdb Bhd which will be listed in its place on Bursa.

Ranhill Holdings will facilitate the injection of RanHill Energy’s water and power assets with issuance of new shares worth rm800 million at rm1.60 each plus paying another USD26 million cash. In addition it will also acquire a 51% equity interest in oil and gas outfit Ranhill Worley Parsons Sdn Bhd from Ranhill Energy, at a call option price to be determined upon the RTO exercise.

On top of Syarikat Air Johor Sdn Bhd, which is the biggest contributor to Ranhill Energy, Ranhill Energy have expanded into China and have about small concessions there. They have also have about five to six concessions in Thailand and are expanding into Vietnam.

Symphony House would have the opportunity to enter into the O&G sector via Ranhill Worley Parsons.

Leading to the exercise, Symphony has divested its existing businesses with only corporate services which would be taking private.

Azman has volunteered to a three year moratorium in respect of his eventual shareholdings in the new firm. His direct and indirect stakes stood at 37.22% as at May 2014 which will eventually result in a 4% to 5% stake in Ranhill Holdings.

Faber: It is currently in the midst of negotiating the extension of its current HSS contract with the government. The contract is due to expire at end 2014. Faber will continue to provide HSS to government hospitals for the next six to nine months from July 2014 until the new contract is awarded.

 

Yinson: It is liked Yinson’s long-term contracts and sound management judgement in making bids. It is believed the market had priced in (01 July 2014) at least one to two contract wins which would contribute only from 2016.

Additionally, the stock was now (01 July 2014) trading at a steep premium to its larger peer Bumi Armada, which trades at 2014-15 price-to-earnings ratio of 19.1-16.2 times.

On Yinson’s outlook, it had just completed a rights issuance and share-split exercise, which raised RM568mil and increased its share base to 1.03 billion from 258.6 million previously.

Additionally, market talk had it that Yinson was bidding for at least three projects and management guided that any new wins would likely be later 2014.