huat2628 I think the quarterly report spoilt sentiment...only if god news it will shoot up. I may be wrong..maybe being pressed down for shoot-up soon they tie up with customs right?
MULTIPLE PROPOSALS EA HOLDINGS BERHAD ("EAH" OR THE "COMPANY") I. PROPOSED BONUS ISSUE OF UP TO 267,356,264 NEW ORDINARY SHARES OF RM0.10 EACH IN EAH ("EAH SHARE(S)") ("BONUS SHARE(S)") TO BE CREDITED AS FULLY PAID-UP ON THE BASIS OF ONE (1) BONUS SHARE FOR EVERY FIVE (5) EXISTING EAH SHARES HELD ON AN ENTITLEMENT DATE TO BE DETERMINED LATER ("PROPOSED BONUS ISSUE"); II. PROPOSED ACQUISITION BY EAH OF 800,000 ORDINARY SHARES OF RM1.00 EACH IN CEKAP AIR SDN BHD ("CEKAP"), REPRESENTING 20% OF THE EQUITY INTEREST IN CEKAP FOR A PURCHASE CONSIDERATION OF RM47.04 MILLION, TO BE FULLY SATISFIED VIA THE ISSUANCE OF NEW EAH SHARES AT THE ISSUE PRICE OF RM0.10 PER EAH SHARE ("PROPOSED ACQUISITION"); AND III. PROPOSED DIVERSIFICATION OF THE EXISTING PRINCIPAL ACTIVITIES OF EAH AND ITS SUBSIDIARY COMPANIES TO INCLUDE MECHANICAL AND ELECTRICAL ENGINEERING BUSINESS AND CONSTRUCTION PROJECT MANAGEMENT CONSULTANCY BUSINESS ("PROPOSED DIVERSIFICATION") (COLLECTIVELY REFERRED TO AS THE "PROPOSALS")
PETALING JAYA: EA Holdings Bhd (EAH) is looking to acquire 20% equity interest in Cekap Air Sdn Bhd for RM47.04mil which will allow it to diversify its existing business operations into mechanical and electrical (M&E) engineering and construction project management consultancy businesses.
It told Bursa Malaysia that it would also be able to expand its marketing reach to the other industries that Cekap and its wholly-owned subsidiary WY Consultancy & Development Sdn Bhd are involved in, thereby reducing its reliance on its current mix of customers which are mainly in the services industry.
However it said the board intended to continue with its existing core business and, upon completion of the proposed diversification, be principally involved in the IT industry and the M&E engineering and construction industry.
“The board anticipates that EAH Group’s new business activities in the M&E engineering business and construction project management consultancy business may contribute 25% or more of the net profits and/or result in a diversion of 25% or more of its net assets in the future,” it said in a filing, adding that it would convene an EGM to seek shareholder approval for the move.
EAH said the vendors (Chong Mui Fun, Shankar Muniandy, Yong Chee Hon, Dr Yeoh Seong Mok, Yong Zhen Wei and Yeoh William) had also agreed to a profit guarantee period of not less than RM56mil aggregate profit after tax (PAT) for Cekap Group for the two financial years ending Dec 31, 2015 and 2016.
Cekap Group recorded PAT of RM10.39mil based on its latest audited consolidated financial statements for the 2014 financial year.
EAH said the vendors would also deposit shares equivalent to RM11.2mil, representing 20% of the total profit guarantee based on the issue price of 10 sen per EAH share, into several pledged Central Depository System accounts.
As at the latest practicable date, it said Cekap’s order book stood at RM53.89mil which would provide earnings visibility up to July 2017, while Cekap group has also participated in project tenders with a total estimated value of RM99.03mil.
EAH said Cekap was well-positioned in the water industry for its M&E engineering services and had also broadened its market reach by creating synergies with award-winning WY Consultancy, which it acquired in 2014.
“The management of Cekap Group believes that it has the necessary resources to carry out its order book and is well positioned to secure more projects moving forward,” it said based on the group’s prospects and positive outlook of the construction industry.
EAH said the proposed acquisition would be fully satisfied by the issuance of 470.4 million EAH shares at an issue price of 10 sen per share, which will be implemented after the entitlement date of its proposed bonus issue.
The proposed bonus issue involves up to 267.36 million new ordinary EAH shares of 10 sen each, to be credited as fully-paid up on the basis of one bonus share for every five existing shares on an entitlement date to be determined later.
The announcement mentioned bonus issue. Means shares will dilute be worth less. Company diversifying ???!!!@@. Even worst issuing additional share @0.10??!!! This counter begining to look like a conman counter ready to go down.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
cihiro
215 posts
Posted by cihiro > 2015-03-06 11:26 | Report Abuse
Sobri tau politik je maa tak tau bisnes tu pasai sobri throw.