MMC: The conglomerate, which bought a 50.1% stake in Tanjong Pelepas Port Sdn Bhd last month, intends to take its 74.99% owned-subsidiary MMC Engineering Bhd (MMCE) private. MMC is making a voluntary offer at RM4.30 cash per share or a share swap of two new MMC shares for every MMCE share held. Analysts said the de-listing exercise would allow MMC to enjoy a bigger share of MMCE's earnings, should it secure more mega infrastructure projects. MMCE is involved in the RM2bil flood mitigation project in Kuala Lumpur and southern part of the double-tracking project. MMCE's share price closed at RM4.12 last Friday.
Crest Petroleum: It may be another company to be taken private. Sapura Telecom- munications is buying a 38.56% stake in Crest Petroleum from Renong Bhd for RM105mil cash or RM3.60 per share. The deal will trigger a mandatory general offer (MGO), which Sapura will undertake for the remaining shares it does not already own. Meanwhile, Sapura bought 340,000 Crest shares last Thursday at RM3.40 per share after making the announcement of the MGO. That transaction may show Sapura's willingness to spend cash to own the oil and gas drilling company. Sapura is sitting on a cash pile after selling its telecommunications business to Time Engineering Bhd in 1996.
RENONG Bhd: Renong is back in the limelight. The deal to sell a 38.6% stake in Crest Petroleum Bhd brought hopes that Renong's restructuring pace would be accelerated, aided by the buoyant market sentiment. Assets divestment forms a large part of Renong's revamp exercise. The group's prime assets include an 11.8% stake in Commerce Asset-Holding Bhd and land bank in Johor. The slow progress of the debt revamp nearly put Renong in danger of being classified as a PN4 company last year. The group then placed out 800 million shares to United Engineers (M) Bhd, raising RM400mil as an interim measure to mend the growing financial problem.
Uda Holdings: Some “legal matters” may need to be addressed before Malaysian Resources Corp Bhd takes over Landas Utama Sdn Bhd, which owns a 24.9% stake in UDA Holdings. Gold Bridge Engineering & Construction Bhd is seeking clarification from the Ministry of Finance Inc on an earlier approval for the company to buy Landas Utama. Gold Bridge has also not accepted the termination of share sales agreement by the vendors of Landas Utama following the conditional approval given by the Securities Commission (SC) last month. Gold Bridge also said it would appeal to the SC to amend the conditions imposed on the approval.
Posim Bhd: Posim, the only company with net cash position in the Lion group, is regaining its shine. Its share price leapt to a nine-month high of RM1.96 last Friday. The pulp and paper manufacturer posted a pre-tax profit of RM3.8mil on a turnover of RM128.4mil for the first quarter ended Sept 30, 2002. The recovery of paper and wood-based product prices helped widen its profit margin. Posim will be tightly held by Lion Land with an 83.7% equity interest upon the completion of Lion group's massive revamp plan. Lion Land is given six months from the date of implementing the restructuring exercise to meet the shareholding spread requirement.