Shareholding change imminent in Century Logistics, Koreans to buy in

By CECILIA KOK

PETALING JAYA: A shareholding change is imminent in Century Logistics Holdings Bhd whose share price has shot up 13.7%.

Sources say South Korea’s CJ Logistics, which is looking to expand in Asean, is close to buying into Century Logistics.

CJ is said to be buying a block of shares of the Port Klang-based integrated logistics services from its major shareholders.

The deal, however, is unlikely to lead to a general offer for the rest of Century’s shares.

One of the vendors of Century Logistics’ shares would be founder and executive chairman, Datuk Richard Phua Sin Mo, sources said.

Phua, who is the single-largest shareholder in Century Logistics with a 26.2% stake, has been reported to be wanting to sell out.

Meanwhile, it is unclear whether the other two major shareholders in the company, namely Century Logistics managing director Steven Teow Choo Hing and executive director Teow Choo Chuan, will sell out or how much of their interests in the company they intend to pare down.

Steven owns 11.1% shareholding in Century Logistics, while Choo Chuan owns a 5.37% stake.

Century Logistics’ shares closed at RM1.04 yesterday, up 12.5 sen.

The counter had been actively traded this week, hitting a volume of 25.9 million shares yesterday.

The company had in recent years been subject to rumours of mergers and acquisitions.

Among these talks was one involving Felda Global Ventures Holdings Bhd, which in 2014 was reportedly eyeing a substantial stake in Century Logistics.

Last year, Century Logistics was said to be in talks with parties from South Korea and Japan looking for a strategic tie-up for access into the Malaysian market.

According to sources, CJ plans to leverage on Century Logistics’ facilites and infrastructure as well as its wide network in Malaysia to reinforce its competitiveness in the region.

It sees Century Logistics’ brand awareness and local networks as a stepping stone to up its game in the sector. Currently, Century Logistics company manages about 2.6 million sq ft of warehousing space. It has two warehousing facilities in Port Klang and four more in Pelabuhan Tanjung Pelepas.

It is also involved in oil logistics, providing ship-to-ship transfer for both fuel and crude oil in mid-sea.

Integrated logistics accounts for more than 70% of Century Logistics’ earnings.

Century Logistics saw its net profit plunge 54.8% to RM5.4mil for the second quarter ended June 30, 2016, from RM12mil in the corresponding quarter last year due to the absence of gain on land disposal.

During the quarter in review, the company’s revenue rose 8.2% to RM82.6mil from RM76.3mil in the previous corresponding quarter due to higher activities of its total logistics services, while its earnings per share (EPS) fell to 1.42 sen from 3.25 sen previously.

For the cumulative period, Century Logistics’ net profit fell 49.2% to RM9.9mil in the first half of the year from RM19.5mil in the previous corresponding period, resulting in its EPS sliding to 2.62 sen from 5.30 sen previously.

During the first half in review, its revenue rose 2.6% to RM152.1mil from RM148.2mil.

The company had proposed a second interim dividend of 1.5 sen per share, bring the year to date dividend proposed to 2.5 sen per share.