UMW also extended its offer to PNB Equity Resource Corporation Sdn Bhd for its 10% stake in Perodua for RM417.5 million or RM29.80 per share. If successful, that would have led to UMW owning a 70.6% stake in Perodua.
In a filing with Bursa Malaysia, UMW says “in the light of developments to date, (it) has extended the MBMR offer and Perodua offer respectively to Oct 31, 2018, to enable the parties to deliberate on the offers”.
Perodua is a lucrative asset as it captured 35% of the local automotive market last year. The company reported a net profit of RM463.59 million on revenue of RM9.05 billion in its financial year ended Dec 31, 2016. It declared a dividend payout of RM205.94 million for that year.
Research analysts believe UMW’s longstanding partnership with Toyota Motor Corp, which owns Daihatsu Motor, could help push the takeover bid through. However, The Edge understands that Toyota is leaning towards letting Daihatsu Motor make the decision as the Perodua partnership predates its takeover of Daihatsu Motor in 2016.
As it is, automotive business accounted for more than 80% of UMW Holdings's revenue, with equipment and manufacturing operations making up the rest. The company had disposed its oil and gas business last year.
UMW Holdings posted a profit before taxation from continuing operations of RM301.3mil in the current quarter, which was substantially higher than the RM48.3mil registered in the same quarter last year.
1.AmanahRaya Trustees Berhad - Amanah Saham Bumiputera 475,644,700 40.71 2.Employees Provident Fund Board * 109,928,668 9.41 3.Permodalan Nasional Berhad 84,778,900 7.26 4.Yayasan Pelaburan Bumiputera # 84,778,900 7.26 5.Kumpulan Wang Persaraan (Diperbadankan) ^ 73,416,600 6.28 * Held under multiple securities accounts of its nominees.# Deemed interested by virtue of its shareholding in Permodalan Nasional Berhad pursuant to Section 8 of the Companies Act 2016.^ Includes all shares held under multiple securities accounts of its nominees.
Recommendation. Re-affirm BUY on UMW at unchanged TP of RM7.11/share. Key catalysts: (1) A deleveraged balance sheet post UMWOG demerger allows room for acquisitive growth and possible resumption of dividend payouts – successful acquisitions from PNB and MBM to increase Perodua stake are strong share price catalysts, (2) Reversal of prior years’ market share loss, structural cost reduction and pricing advantage from UMW Toyota’s EEV-focused strategy, (3) Redevelopment of UMW’s 830 acres Serendah land which will unlock value of the asset – easily worth 40sen/share on our estimates, and (4) A more than quadrupling of M&E division earnings once its aerospace division reaches full scale production.
Income distribution: Zeti and Abdul Rahman unveiling the income distribution rate for ASM 3 at 6 sen per unit. — Bernama
KUALA LUMPUR: Permodalan Nasional Bhd (PNB), which manages RM288.1bil in assets, has signalled its intention to provide financial support to underperforming “core companies” seeking to turn around their business.
“We started effectively with support in the participation of Sapura Energy Bhd ’s transformation exercise, which we believe if executed well will deliver very positive results in the future,” said president and group chief executive officer Datuk Abdul Rahman Ahmad to reporters after the launch of PNB’s new unit trust products.
Sapura Energy had in late August announced a RM4bil cash call to shore up its financial position and capital structure. PNB is the second-largest shareholder in Sapura Energy, owning about 12%.
The fund has given its undertaking to subscribe to its portion of the rights shares, as well as to take up any excess rights shares. Sapura Energy, earlier this week, requested for a waiver for PNB from making a mandatory general offer if its shareholding in the company breached the 33% threshold after the completion of the rights issue exercise.
“We understand the external challenges that they are facing... so our focus now is to engage with them,” Abdul Rahman said.
At the press conference yesterday, Abdul Rahman explained that the “core companies” are companies which PNB has more than a 10% stake in, or exposure of above RM1bil.
He pointed out that some of the stocks’ performance year-to-date has been lagging, including Telekom Malaysia Bhd , Axiata Group Bhd and some construction companies.
“Our focus earlier last year was on our strategic companies, so now, we are moving towards our core companies,” he said.
Last year, under the stewardship of Abdul Rahman and former PNB chairman Tan Sri Wahid Omar, PNB had embarked on an overhaul of its strategic companies, which it has controlling stakes in. These exercises included the demerger of conglomerate Sime Darby Bhd into three separate listed companies, UMW Holdings Bhd from UMW Oil & Gas Corp Bhd, and the decoupling of Chemical Company of Malaysia Bhd (CCM) and CCM Duopharma Biotech Bhd , delivered in terms of returns to shareholders.
PNB also oversaw the acquisition of I&P Bhd by SP Setia Bhd . With a new chairman – Tan Sri Zeti Akhtar Aziz – on board, the fund is moving into phase two of its transformation. The former Bank Negara governor said the fund would focus on consolidating its previous exercise.
“There is going to be a period of consolidation. Of course, we don’t exclude any market-driven merger or demerger exercise, but not precipitated by PNB,” she said.
Zeti came in as the chairman of PNB in July.
In less than two months in office, she said that PNB is set to take on a transformation programme within the organisation and its investments.
“We need to increase our capability in risk management... and we also need to build buffers because there would be a time when there would be setbacks because the environment is beyond our control,” she said yesterday.
Despite the volatility in the stock market since the beginning of the year, PNB recorded a 7.3% increase in its asset under management to RM288.1bil as at Aug 31, compared to RM268.6bil a year ago. Its net income for the first eight months of 2018 rose 2.6% year-on-year to RM10.3bil. As at August 2018, PNB had 13.6 million accounts with 231.5 billion units in circulation. Cumulative income distribution stood at RM176.4bil as at September, including RM4.3bil distributed year-to-date.
“PNB has achieved an encouraging performance, especially given the challenging global and domestic environment,” Zeti said.
She pointed out that PNB is also focusing on introducing more variable pricing unit trust products, moving forward.
Yesterday, the firm launched two new variable pricing unit trust funds under Amanah Saham Nasional Bhd, namely, ASN Equity 5 and ASN Sara 2. The two funds will be offered under the variable pricing unit trust, which means the performance of the unit trust will depend on the investment portfolio. “The previous variable fund launch was 15 years ago. These variable funds are available to all Malaysians,” Zeti said.
PNB also announced an income distribution of six sen per unit for Amanah Saham 1Malaysia, which will be renamed as Amanah Saham Malaysia 3 effective Oct 15. The income distribution will involve a total payout of RM755mil, which is 5.5% higher than 2017’s payout, benefiting more than 440,000 account holders who currently own 12.7 billion units.
Permodalan Nasional Bhd (PNB) group chairman Tan Sri Dr Zeti Akhtar Aziz (left) and president and group chief executive Datuk Abdul Rahman Ahmad. - Bernama Permodalan Nasional Bhd (PNB) group chairman Tan Sri Dr Zeti Akhtar Aziz (left) and president and group chief executive Datuk Abdul Rahman Ahmad. - Bernama
KUALA LUMPUR: Permodalan Nasional Bhd (PNB) has launched two new funds under Amanah Saham Nasional Bhd that would be available for all type of investors.
The two funds will be offered under the variable pricing unit trust, which means the performance of the unit trust will depend on the investment portfolio.
This is the first official event for Zeti as the chairman of PNB. The former governor of Bank Negara reported her chairmanship position in PNB in July.
The two variable price funds would be known as ASN Equity 5 and ASN Sara 2.
ASN Equity 5 is an equity growth fund that caters to the younger generation of investors who aim for aggressive growth in capital and net worth, PNB said.
The fund would be investing 70% to 90% of its net asset value (NAV) in equities, while the balance would be in fixed income, money market instruments.
Meanwhile, ASN 2 is a mixed asset conservative fund that is tailored for risk-averse investors that want a steady income stream.
The fund would be investing 20% to 80% of its NAV in fixed income securities and money market instruments, and the balance invested in the stock market.
When PNB started, it only offered fixed priced unit trust, which means the price of a unit trust is fixed at the time of purchase until it is sold.
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....
freddiehero
16,722 posts
Posted by freddiehero > 2018-08-10 22:47 | Report Abuse
eh u ever c no volume still can up?