Stocks To Watch - SapuraKencana, PetChem, Global Carriers, Gopeng, auto stocks, Tomei, Raya

KUALA LUMPUR (April 9): Based on news flow and announcements today, companies that may be in focus tomorrow could include the following:

SapuraKencana Petroleum Bhd's second largest shareholder plans to sell up to $305 million (RM989 million) worth of shares in this oil/gas services firm, according to a term sheet of the deal seen by Reuters.

Norway's Seadrill Ltd., the world's top offshore oil driller, is offering up to 230 million shares of SapuraKencana at 4.3 ringgit each, putting the total value of the deal at up to 989 million ringgit. The price is equivalent to a 3.4 percent discount to Wednesday's closing price of 4.45 ringgit.

The deal consists of a base offer of 180 million shares, with an option to grow by 50 million shares, according to the terms.

Maybank was hired as sole placing agent for the selldown.

Petronas Chemicals Group Berhad (PetChem or PCG) said the board of BASF-PETRONAS Chemicals Sdn Bhd (BPC) has made a final investment decision for new investment of RM1.5 billion in an integrated aroma ingredients complex in Gebeng, Kuantan.

BPC is the existing joint venture between BASF and PCG; with 60% and 40% shareholding respectively, which operates an integrated complex in Gebeng, Kuantan, for the production of acrylic monomers, oxo products and butanediol.

The investment by both parties in the new project will be in accordance with their shareholdings in BPC, said PCG.

The new project comprises the development of a Citral and precursor plant complex, which will be integrated with the existing facilities of BPC located in Gebeng.

The new project will also include a new world-scale plant to manufacture Citronellol and L-menthol, and will be developed in phases with the first plant expected to come on stream in 2016.

“The project will allow the parties to meet the globally growing demand of customers in the flavour and fragrance industry, especially in Asia,” said PCG.

Global Carriers Bhd (GCB) said it was served a notice of demand from Kuwait Finance House (Malaysia) Bhd to pay up RM26.39 million yesterday, or face winding-up action after 21 days of its receipt of the notice.

“GCB was given 21 days from the receipt of the said notice of demand to settle the outstanding claim, failing which winding up proceedings will be taken against GCB,” said Global Carriers.

The PN17 company, which is facing a string of other legal suits, said it is seeking legal advice to resolve and/or defend against the notice of demand.

Last year, the company incurred a net loss of RM33.93 million. It had a negative net asset per share of 24 sen.

Global Carriers was untraded today. Its last traded price was 5 sen per share.

Gopeng Bhd has proposed a final single-tier dividend of three sen a share.

Today, Gopeng shares rose 0.5 sen or 0.6% to close at 77.5 sen. Based on the closing price, the three sen dividend translates into a 4% yield.

Automobile stocks could be excited on news that Malaysia has attracted a new investment in automobile industry totalling RM2 billion from China and the government is holding talks with another firm to invest in engine manufacturing totalling RM2 billion.

Japan’s Akashi Kikai has also agreed to invest up to RM700 million in Malaysia to produce auto transmission system, Parliament was told today.

In reply to a question on how to make Malaysia a regional hub from Member of Parliament for Bagan Serai Dr Noor Azmi Ghazali, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the new investment from China will come with a total production capacity of 100,000 units that involves an investment of RM2 billion.

He added the RM2 billion investment from China will include setting up a research and development centre worth RM500 million.

The Minister, whose reply to the MP was also in a written form given to the media, said the government “is also holding discussions with a firm to invest RM2 billion to produce engine system”.

In addition, Mustapa said the government has also succeeded in attracting companies producing high value and critical components for the auto industry.

For example, Malaysia has attracted Akashi Kikai from Japan to invest as much as RM700 million in Sendayan, Negeri Sembilan, to produce transmission system.

Tomei Consolidated Berhad has recommended the payment of first and final single tier dividend of 1.0 sen per ordinary share.

The entitlement date and date of payment of the above proposed dividend has yet to be finalised.

At market close today, Tomei rose 1.5 sen to end at 63 sen per share.

Raya International Bhd’s share trading has been suspended “pending a material announcement”.

The suspension was effective 10.10 am today.

Prior to the suspension, its shares were traded at 12.5 sen, down 0.5 sen or 3.9%.

Raya International Bhd is involved in the manufacturing and distribution of air and water filters for commercial and household sectors primarily in Malaysia.

Written by Ho Wah Foon of theedgemalaysia.com