News - Malpac, Keladi, GKent, Scomies, PMetal

Malpac Holdings: Its shareholders have firmly rejected the plantation firm’s plan to sell off subsidiary Radiant Response Sdn Bhd and a palm oil mill in Perak.

Its 30 largest shareholders held a stake of about 85.63% as at April 14 2014. Its board of directors jointly controls a 43.84% stake in Malpac.

ASB also has a 10.71% stake in the company.

Earlier Malpac had proposed to complete the disposal of Radiant Response Sdn Bhd and palm oil mill.

Radiant Response is the registered owner of two parcels of plantation land – both in Perak – that are held in trust for Malpac. The parcels are valued at rm30.6 million. The palm oil mill is valued at rm22.4 million.

If the Radiant Response deal had gone through, Malpac would have triggered the PN17 status because of insignificant business and operation.

Keladi: It plans to build high end properties on the 5.66ha prime land it is buying from GBH in Mukim Batu, Segambut. The land in Segambut carries a GDV of rm1.5 billion.

Keladi Maju currently (July 2014) owns 1182 acres of estate land, 133 acres of vacant land and 167 acres of land under development.

GKent: Water meters manufacturer and construction group is eyeing a re entry into oil and gas industry. The group had previously been in the oil and gas sector, where it was involved in the selling of valves and bar code pumps.

It was reported earlier that GKent & Johan, both controlled by Tan Sri Tan Kay Hock (said to be Najib’s golf buddy).

The company is bidding for water infra and railway construction projects that are worth rm10 billion to rm15 billion.

The company has set up an engineering division to look into smart water meters and poly meters.

In Aug 2012 it was awarded a contract sum of rm1.08 billion by SPNB to provide system works for the Ampang LRT line.

It has carried out a revaluation on two of its investment properties, meanwhile resulting in a surplus of an aggregate amount of rm29.7 million to be reflected in the financial statements and group as at July 31 2014.

The total value placed on the properties was rm103 million. The two asserts are a freehold landed property located in Puchong and a leashold tri level Town House at the city of Port Moresby in Papua New Guinea.

After revaluation will result in an increase of 12.18 sen in the net assets per share of GKent to 124.47 sen as at July 31 2014.

Scomies: Its fund raising via rights issue of convertible bonds will help it to strengthen its balance sheet with minimal dilution effect in the near term. Apart from using the funds raised for the Ophir field, the company is also using the funds to prepare itself for potential integrated project management contract wins in the future.

Its latest order book stands at rm5.3 billion with 48% of the contract value from Petronas.

Graphene nano fluidsd are set to be a game changer for the company. SES has commercialized grapheme drilling fluids and the market size if estimated at around USD2 billion. Expect the new products to strengthen its foothold in the oilfield fluid market and improve margins.

PMetal: While aluminium prices (late July 2014) have consolidated the present level and record premiums are set to benefit PMetal’s smelters.

Global aluminium producers have done well to curtail output. Coupled with the absence of new smelting capacity outside China and moderate demand growth, the market is generally expecting its first supply deficit in a decade from 2014. This favourable development has lifted the sector’s fundamentals and seen the LME’s aluminium cash price breaking the USD2000 per tone psychological barrier in late July 2014.

PMetal is set to enjoy the fruit of aggressive investments in its world class low cost aluminium smelters in Samalaju and Mukah in Sarawak. The improved industry dynamics are timely as both its smelters have been fully operational since April 2014. The higher aluminium prices should also mean extra dollars for every tone of metal produced.