Genting: POWER generation may be the main energy source for Genting's future growth. Last week, the group said it was keen on buying up to a 50% stake in Loy Yang Power that owned a 2,000MW power station and a coalmine. It intended to form a consortium to take over the debt-laden Aussie company. Meanwhile, Genting is looking for a partner to submit the final binding offer for a 35% stake in PT Jawa Power, which owns a coal-fired station in east Java. No price was mentioned for either purchase. Back in June, Genting bought a 30% stake in an Indian power plant. Stock watch on Genting
Sime Darby: SIME Darby pocketed RM94mil profit after selling the entire 22% stake in Palmco Holdings for RM306.2mil or RM6.90 per share via private placement last Friday. The surge on Palmco share price prompted Sime Darby to sell its stake that it fought hard to own and to retain two years ago. The oleochemical manufacturer had expanded its plantation business. Hence, Sime Darby found that Palmco was not an effective hedging tool against the cyclical plantation earnings. Palmco share price had surged 73% to RM7.10 last Friday since Jan 2. Stock watch on Sime Darby
CAHB: COMMERCE Asset-Holding Bhd (CAHB) and AMMB Holdings Bhd last Friday called off their merger talk that started in early July. Pricing is believed to be the stumbling block for the merger. Analysts were relieved that CAHB did not pay hefty premium to force the merger through. There was speculation that AMMB Holdings was asking for as high as RM4bil and a large cash settlement. Analysts said the termination of the deal could be positive for CAHB, whose share price had been capped by the uncertainties on the pricing and deal structure. Stock watch on CAHB
Affin Holdings: THE banking group's net profit slid 79% to RM17.7mil for the half-year ended June 30 from RM82.5mil a year ago although turnover remained at nearly RM940mil. It incurred RM9.2mil net loss in the second quarter. Most of its main operating units reported lower profits. Affin Bank reported a loss of RM11.9mil due to higher loan loss provisions. Affin Holdings' earnings performance was in contrast with its industry peers that achieved substantial improvement. The journey for the group to rejuvenate financial health appears to be a long one. Stock watch on Affin
Tomisho: THE company is turning around. The new major shareholder Ng Ah Chai, who is also the newly appointed managing director of Tomisho, has plans to bring the rubberwood furniture maker back into the black. Tomisho wants to divest its properties in Klang to major shareholder Perbadanan Nasional Bhd and raise fresh fund via rights issue to hedge its bank borrowings amounting to RM79mil. Tomisho dipped into the red two years ago, affected by the slowdown in the US economy. High interest payments also dragged down its earnings. Stock watch on Tomisho
Stock watch on Genting
