Stockwatch shares show their prowess

By ELAINE ANG

The shares of most companies highlighted as stocks to look out for in StarBiz's Stockwatch column, which appears every Monday, have done quite well. The companies have generally shown a marked improvement in their financial performance and have received global recognition, thus pushing up their share prices further. Below is a run down of some of the players across sectors, why they were chosen and how they had progressed this year locally and globally.

Automotive

Proton Holdings Bhd was highlighted due to the possibility of the national car manufacturer obtaining a foreign partner. However, its shares were sold down after investors' were disappointed when the Government decided to call off negotiations with Volkswagen on Nov 20.

A scale model of the Resorts World displayed at the ground breaking ceremony of Genting International's second casino and entertainment resort on Sentosa Island in Singapore. – AFP

YTD Proton shares fell RM2.90 (43.9%) to close at RM3.70 last Friday.

Nevertheless, Proton's financials have been steadily improving – it reported its first profit - RM3.51mil in the second quarter ended September 30, 2007 - after five consecutive quarters of net losses, citing improved sales especially since the launch of the Persona and better cost management.

Another stock selected in the sector was MBM Resources Bhd mainly due to the strong contribution from associate Perodua. Net profit has been on the up-trend rising 33.6% to RM38.5mil in the third quarter ended September 30, 2007.

Building materials

The building materials sector has bright prospects going forward boosted by a rise in construction activities from the implementation of the Ninth Malaysia Plan (9MP) projects.

Crude palm oil prices hit new highs this year with palm oil futures on Bursa Derivatives reaching a record RM3,068 on Nov 26. As a result, major palm oil firms such as IOI Corp recorded substantial profits.

Cement players Lafarge Malayan Cement Bhd and Cement Industries of Malaysia Bhd were two of our stocks to watch as potential beneficiaries of the 9MP.

The sector also received a boost when the Government adjusted the ceiling price of cement last December. In addition, the automated pricing mechanism to take effect from Jan 1 is expected to provide further upside to cement prices.

Construction

We selected UEM World Bhd due to the huge potential it provided as the master developer for Nusajaya, a 9,712 hectares future metropolis in the Iskandar Development Region launched early this year.

Land prices in Nusajaya may double in the next two years, making UEM World a direct beneficiary.

It is also involved in the construction of the RM3bil second Penang Bridge to be completed by 2010.

As studies indicate robust demand for oil from Asia, local oil and gasrelated companies have been busy stepping up their brown field and marine services locally and abroad.

WCT Engineering Bhd proved our confidence in it was not unfounded as it continues to clinch contracts locally and abroad. It secured some of the largest contracts from the Middle East this year including the Meydan Racecourse Dubai valued at RM4.6bil with partner Arabtec Construction. It is also in a joint venture to construct the RM1.3bil Abu Dhabi F1 Circuit.

Property

Shangri-La Hotels (Malaysia) Bhd was chosen as it is well positioned to take advantage of increasing tourist arrivals Visit Malaysia 2007 due to its strategic location in these geographical areas.

Recently, Standard Chartered Private Equity Ltd bought a 19.55% stake in the hotel group. As an equity investor, the fund's involvement could be a catalyst for faster growth or strategic acquisitions.

Information Technology

We looked at VADS Bhd an excellent small-cap IT due to its exemplary earnings and solid execution.

VADS' share price has been rising sharply, outperforming the benchmark KL Composite Index over the past year. In addition to securing local contracts, VADS has begun to receive global recognition by securing two offshore contracts this year.

Shipping

Malaysian Bulk Carriers Bhd was one of our stocks to watch among transport companies.

The company has been benefiting from surging dry bulk rates this year. It has also been paying decent dividends.

This coupled with the higher average shipping rates expected for 2008 has made the company an ideal stock to look at during volatile periods.

Banking

The RHB group has seen its fair share of action in terms of mergers and acquisitions this year. The latest news in the RHB saga is Abu Dhabi Commercial Bank's interest to buy a 25% stake in RHB Capital Bhd from the Employees Provident Fund.

This will help RHB Capital's aim to turn subsidiary RHB Bank into one of the top three banking groups in South-East Asia and expand its presence to China and the Middle East.

Airlines

Malaysia Airlines was selected as a good turnaround story. It achieved its business turnaround plan a year ahead of schedule and plans to introduce its business transformation plan next month.

It posted a record net profit of RM363.94mil for the third quarter ended Sept 30, its fifth consecutive profitable quarter and best ever earnings.

However, MAS' earnings is expected to be affected by the limited opening of the Kuala Lumpur-Singapore route to AirAsia Bhd.

It has been a phenomenal year for AirAsia Bhd, which has been reaping good profits as business continues to boom. It also launched its long-haul budget carrier AirAsia X this year and gain approval to have two flights plying the lucrative Kuala Lumpur-Singapore route recently.

Plantations

IOI Corp Bhd is currently the best and one of the biggest of the breed. In the palm oil sector, it is the most profitable company, with one of the highest yields and lowest costs. High crude palm oil prices have caused net profit to surge 76.6% to RM451.5mil for the first quarter ended September 30, 2007.

The IOI is a favourite plantation stock among investors due to its consistent earnings delivery and liquidity in the trading of the stock especially after its share split earlier in the year.

Heavyweights

Genting Bhd has seen its fair share of action this year.

Early this year, it announced that it had bought a 75% stake in a casino project to be operated by Macau magnate Stanley Ho for RM1.57bil.

More recently, it appears that it has set its sights on the British gaming industry when its subsidiary Genting International plc bought a 9.38% stake in Rank Group plc – the second biggest casino operator in Britain.

Genting International is also in the midst of building its S$5.75bil Sentosa integrated resort in Singapore.

DiGi.Com Bhd was selected because it is one of the most successful growth stories in the telecommunications industry. Its share price has grown by leaps and bounds. Moreover, DiGi declared RM1.685 per share in gross dividends to date.

DiGi is cash rich and its balance sheet is stronger, it has RM1bil in its coffers and debts of only RM300mil.

The third-generation spectrum (3G), which DiGi is in the process of acquiring, is expected to boost the telecommunication company's average revenue per user (ARPU).

Government-linked companies

Tenaga Nasional Bhd is said to be one of the cheapest utility stocks in the region. Its share price fell in the past few months which analysts attributed mainly to the recent pullback by foreign investors due to concerns over electricity demand growth, rising fuel costs, and contracting global liquidity.

However, hope that Tenaga could revise electricity tariff in the event of a cut in gas subsidy propelled its share price upwards to RM10 earlier this month. The counter closed at RM9.55 on Friday.

Malayan Banking Bhd is one of the more defensive stocks in the banking sector, which boasts superior dividend yields.

Maybank made a positive move when despite its usual slower first quarter results (financial year-end June 30, 2008), it surprised most people with a quarter dividend trend going forward plus a one-for-four bonus issue.

Moreover, it has been granted approval-in-principle to start an Islamic subsidiary recently.

But there were some negative news about its insurance business though - a possible joint venture partnership with PT Panin Life Tbk has hit a snag due to Indonesia's banking regulations.

Oil and gas

Many oil and gas stocks were highlighted this year. One of the more exceptional ones was Muhibbah Engineering (M) Bhd. The construction and engineering group has been in the limelight this year securing contract after contract totalling a whopping RM1.8bil so far. Its outstanding order book is at a record high of RM4.45bil, which will boost future earnings.

Another gem in the industry was KNM Group Bhd. In just two years, the share price of KNM Group rose tremendously to reach RM7.20 last Friday, from 58.3 sen seen on December 21, 2005. This means investors who put their funds into the stock would have made huge gains.

Sputtering run of IPOs

By TEE LIN SAY

IT used to be that the investing public would wait anxiously for the listing of a company. After all, wasn't it almost a guarantee that upon the stock's debut, successful applicants would stand to reap the fantastic gains customary of an initial public offering (IPO)?

As recent as 2006, there was still a healthy appetite for IPOs. This was especially apparent among the big issues. The countdown to the stocks' quotation was intensified with a big push on investor relations and competitive book-building exercises involving institutional investors.

While retail investors queued with their applications, analysts scrambled to mete out higher fair values. The entire market would wait with bated breath for that day to come.

»Fewer IPOs because SC more stringent in going through applications« GAN KIM KHOON

Last year certainly saw quite a few spectacular listings. Oil and gas biggie Kencana Petroleum Bhd was listed in December amid fireworks. Recall that upon its opening bell, the stock opened at 80 sen, for a 39 sen premium over its offer price of 41 sen. Today, Kencana is almost six times higher at RM2.43.

Mesdaq counters were not left out. Remember stem cell specialist Stemlife Bhd and its phenomenal performance? Today, Stemlife's share price has risen by an unbelievable 1,000% to RM3.40 since its listing 14 months ago.

Then there are the likes of Alam Maritim Resources Bhd and Wellcall Holdings Bhd, which also saw their share prices rising on virtual straight lines.

Those who expected this run of good luck to continue into 2007 would have been severely disappointed. With the exception of a handful, the gains in new IPOs for this year have been mostly pathetic. The year is coming to an end, and what we have is a total of 26 listings compared with 40 in 2006.

In 2005, there were 79 new counters, while 2004 had 72.

A poor IPO harvest

Out of the 26 listings this year, 16 are main boarders, 8 are second boarders and only 2 came aboard Mesdaq. Ten of these companies are trading below their IPO prices. The better performers for the year have clearly been the main board companies.

Last month, Sime Darby Bhd hogged the limelight when it was re-listed for a remarkable premium and closed at RM11, up 24% from its reference price of RM8.90. Today, it still hovers at the RM11.40 level.

»Reduction in IPOs reflects investors’ preference for more liquid large caps« SHERILYN FOONG

Oil and gas company Deleum Bhd enjoyed a tremendous run after being listed in June, touching a high of RM5.80 in mid June. It has since retraced to RM3.04. While still higher than the offer price of RM2.55, the current price is near its low.

At its current price of RM4.06, recently listed AEON Credit Service (M) Bhd is still enjoying a large premium over the offer price of RM2.50. Then there's Pantech Group Holdings Bhd, which is an analyst favourite and continues to trade at a 130% premium over its IPO price of RM1.18.

Other notable ones are Petra Energy Bhd and Hap Seng Plantations Bhd. As for the rest, many are trading close to their IPO prices. Even the real estate investment trusts (REITs) have not recorded exceptional capital gains.

Why is this so? Many will argue that this has to do with the regulators coming down harder on governance issues, particularly with the likes of Transmile Group Bhd and Megan Media Holdings Bhd rocking the local corporate scene when accounting discrepancies emerged.

Perhaps the more convincing reason for this lack of interest in IPOs may be simply the winds of privatisation sweeping over Bursa Malaysia. That is seemingly the 'in thing' in corporate Malaysia.

Mergers and acquisitions, synergistic benefits, value creation and better valuations are just some of the key phrases bandied about when companies announce privatisation plans.

This is especially apparent with smaller capitalised and illiquid companies that are not accorded the valuations they deserve, according to the parties taking them private. With Bursa Malaysia being a laggard market among its regional peers, this may discourage companies even further from listing.

Wouldn't it be better to list in Hong Kong and China, where the companies are easily accorded price earnings ratios in excess of 20 to 30 times?

Tightening the process

Gan Kim Khoon, director and head of equity capital markets at OSK Investment Bank, says one of the main reasons for the lower number of IPOs this year is that the Securities Commission (SC) is more stringent in going through applications.

“This was its drive to improve the quality of new listings. There have been so many bad apples, many listed companies with nothing much to begin with,” he adds.

During the nine months ended September, the SC has received a total of 27 new IPO applications, of which 13 were submitted in the third quarter itself. Three applications have been rejected, two intending to go to the second board and one the main board.

An industry observer says the SC has been known to put an application under even more intense scrutiny after allegations regarding the company or its management reach the regulatory body.

Then, there are cases of flotation exercises getting the green light but subsequently aborted because there were no placees willing to take the shares.

Gan says that while there are local businesses that intend to list elsewhere, this is not a major reason behind the shrinking IPOs. Malaysian companies that venture out to float their shares are far and few between. Besides, most of them also only list on the London Stock Exchange's Alternative Investment Market (AIM).

He adds, “People are moving away from listing on the Mesdaq and second board as there is the perception that these companies are smaller in terms of balance sheet and profitability, that the stocks are generally illiquid, and that the boards have more lenient listing requirements.

“Many smaller cap stocks are tightly held, where you have the controlling shareholder holding 70% of the shares.”

Alliance Investment Bank director and head of equity capital markets Sherilyn Foong agrees. She says that apart from the emphasis on quality and proven profit and business track records, bigger market capitalisation issues attract more interest because they offer share liquidity.

“This phenomenon (the reduction in the number of IPOs) reflects the investors' preference for the more liquid large caps. The much anticipated small-cap catch-up wave has not materialised, which has aggravated this situation today,” she adds.

Gan says liquidity is a key consideration for institutional investors when deciding on a stock. “When there's a situation of very little shares available in the market, coupled with the fact that it is hardly traded, this can be quite a put-off,” he explains.

It is because of this too that many companies that have already qualified for a second board listing, now rather wait longer to be eligible to go straight to the main board.

Different next year?

Looking forward, however, Gan understands that there will be a higher number of IPOs in 2008 as there have been quite a few IPOs approved for the first quarter of 2008, although the prospectuses have yet to be released.

For the moment, he opines that the appetite for IPOs is rather weak, especially for the smaller companies.

“If the company is in a good sector like oil and gas or plantation, then it will naturally do well. If it's small, it just won't interest market participants. The average PE for new listings this year was around 8 times, which isn't unreasonable. So I would say that it’s more to do with size, liquidity and market conditions,”

Foong, however, feels that retailers' interest is still quite strong as evidenced by consistently high subscription rates, although this is also aggravated by the scarcity quotient to an extent. “It's the institutional appetite that is definitely more selective and increasingly skewed toward the large caps,” she says.

She adds that the importance of investor relations for issuers cannot be emphasised enough and is pivotal to maintaining investor interest and knowledge in the company.

Foong feels that the current trend of fewer IPOs will likely persist, especially with regional capital markets increasingly opening up to foreign listings. “With persistent value compression in the small caps, the trend toward privatisation will continue amidst a lush liquidity backdrop locally,” she says.

31-12-2007: Commendable 2007
by Gan Yen Kuan

The year 2007 saw Bursa Malaysia giving its most glistening report card in recent years. After being a regional laggard for quite a while, Bursa has finally caught up with its peers to emerge as one of the best performers in the region.

Various corporate developments such as privatisation exercises and mergers and acquisitions have further spurred stock activities.

Amid the corporate excitement, however, accounting irregularities also hogged the limelight, following the unravelling of the Enron-style accounting scandal at air cargo operator Transmile Group Bhd and subsequently, in other companies, including Megan Media Holdings Bhd.

Such state of affairs prompted the Securities Commission (SC) to become more aggressive in taking action against corporate delinquents.

Highlights
The Kuala Lumpur Composite Index (KLCI) continued the momentum from late 2006. On the first trading day of the year, the KLCI rose 20.85 points to 1,117.09 and on April 9, it touched the psychological 1,300 mark for the first time in 13 years.

The market slipped in February when regional bourses plunged on fears of capital controls in China and economic slowdown in the United States. There was panic selling across Asia in late February after Shanghai tumbled, and the markets extended losses into March.

Another significant panic selling across the region took place in August in the wake of the subprime mortgage crisis in the US, the impact of which was felt globally. On Aug 6, the KLCI dropped to below 1,300 points.

Since then, the KLCI has gradually strengthened and as of Dec 28, it closed at 1,447.04, up 32% or 350.8 points from the start of the year.

Among corporate developments, the most eye-catching was the listing of the enlarged Sime Darby Bhd (formerly Synergy Drive Bhd) on Nov 30 to become the largest company on Bursa by market capitalisation.

Another jewel of the crown, CIMB group, made several headlines this year with its aggressive expansion trail. Although CIMB Bank lost the bid for Thailand’s ACL Bank Public Co Ltd to Industrial and Commercial Bank of China Ltd in October, the banking group is continuously looking for more merger and acquisition opportunities.

Among government-linked companies (GLCs), Malaysian Airline System Bhd (MAS) chalked up another milestone this year, recording the highest ever earnings in its 60-year history with a nine-month net profit of RM609.49 million, one year ahead of its published FY08’s earnings target of RM500 million.

Towards the end of the year, the government shocked the investing community when it terminated talks with German carmaker Volkswagen and the United States’ General Motors for a strategic partnership in Proton Holdings Bhd based on the belief that the national carmaker could go it alone on the back of its improving financial performance.

On the development front, 2007 was the second year of the Ninth Malaysia Plan (9MP) covering 2006 to 2010. The government has allocated RM200 billion for 9MP and up to November, a total of RM63.76 billion had been spent.

The government has announced more projects under the 9MP, such as the Bakun dam transmission project, Pahang-Selangor water transfer project, and Penang transportation hub.

The government also in March decided to revive the 330km Ipoh-Padang Besar railway project, which was shelved in late 2003. The project has been awarded to a 50:50 joint-venture company of MMC Corporation Bhd and Gamuda Bhd.

Prime Minister Datuk Seri Abdullah Ahmad Badawi then launched the Northern Corridor Economic Region (NCER) in July, and the East Coast Economic Region (ECER) in October, following the launch of the Iskandar Development Region (IDR) in late 2006.

Corporate highlights
Jan 18: The New Straits Times Press (M) Bhd and Utusan Melayu (M) Bhd abort a plan to merge the two publishing companies, as they could not agree on a scheme of merger that would be beneficial to both.

Jan 29: Sarawak tycoon Tan Sri Tiong Hiew King announces plans to merge Sin Chew Media Corp Bhd and Nanyang Press Holdings Bhd with Hong Kong-listed Ming Pao Enterprise Corp Ltd.

Feb 22: CIMB’s parent Bumiputra-Commerce Holdings Bhd (BCHB) agrees to sell a stake in BCHB to Bank of Tokyo-Mitsubishi UFJ Ltd for RM1.34 billion.

March 8: The Employees Provident Fund (EPF) wins Utama Banking Group Bhd’s (UBG) 32.6% stake in Rashid Hussain Bhd after submitting a revised offer of RM2.25 billion (earlier RM2.2 billion), beating rival bids from EON Capital Bhd and a consortium led by Kuwait Finance House (M) Bhd.

March 22: Prime Minister announces waiver for real property gains tax effective April 1.

March 27: Bank Negara Malaysia further liberalises Foreign Investment Committee rules to allow 100% foreign equity ownership in Islamic financial institutions.

April 3: MAS launches budget airline Firefly operating out of Penang. In June, Firefly got the government’s nod to fly out of Subang.

April 11: Shareholders of PPB Group Bhd approve the merger of PPB Oil Palms Bhd with Singapore’s Wilmar International Ltd. PPB Oil Palms was delisted on May 31.

April 13: The government unveils property blueprint to boost the sector.

April 30: Transmile fails to submit audited financial statements for the financial year ended Dec 31, 2006 within four months from the close of the year.

May 4: Megan Media announces its subsidiaries, Memory Tech Sdn Bhd and MJC (Singapore) Pte Ltd, have defaulted on maturing trade facilities amounting to RM47.36 million.

May 7: Transmile says its auditors Deloitte & Touche is unable to obtain relevant supporting documentation from the management on certain transactions. Appoints Moores Rowland Risk Management Sdn Bhd to carry out a special audit.
May 17: At the behest of creditor banks, Megan Media appoints Ferrier Hodgson MH Sdn Bhd as its investigative accountant for Memory Tech Sdn Bhd.

May 30: The extent of irregularities in Transmile begins to unravel as it makes public the interim report on special audit. Revenue may have been overstated by RM197 million and RM333 million for the years ended Dec 31,2005 and 2006.

May 21: Prime Minister announces pay hike of up to 35% for civil servants from July.

June 6: Megan Media IA preliminary report finds substantial irregularities and fraudulent activities, including fictitious trading creditors and debtors, and overstated assets.

June 8: Megan Media says SC has begun probe into the affairs of the company.
June 13: Megan Media says the group has defaulted on nearly RM900 million (principal only) in maturing banking facilities.

June 25: Malaysia’s largest textile manufacturer Hualon Corporation (M) Sdn Bhd put up for sale. Later bought by India’s energy and chemicals group Reliance Industries Ltd.

June 28: On the back of high oil prices, Petroliam Nasional Bhd announces a record net profit of RM46.4 billion on the back of RM184.1 billion in revenue for the year ended March 31, 2007.

June 29: Megan Media reports a whopping unaudited net loss of RM1.27 billion for the year ended April 30, 2007.

June 29: Transmile announces a net loss of RM126.33 million for year ended Dec 31, 2006 and net loss of RM369.56 million for FY05.

July 2: The government surprises smokers with a tobacco excise duty hike of 25%.

July 10: A consortium that includes Malaysia Airports Holdings Bhd (MAHB) clinches a RM9 billion concession to manage the Sabiha Gokcen International Airport in Turkey.

July 18: Dubai’s free zone operator Jafza International withdraws from the contract to manage the Port Klang Free Zone.

July 31: Affin Holdings Bhd proposes sale of up to 15% stake to Bank of East Asia Ltd.

Aug 10: British billionaire Sir Richard Branson’s Virgin Group takes up a 20% stake in Fly Asian Xpress Sdn Bhd (FAX), now known as AirAsia X Sdn Bhd, which operates the budget long-haul airline AirAsia X.

Sept 24: MMC signs MoU with Dubai World, the Dubai government’s investment arm, to explore opportunities to undertake a RM16 billion maritime centre and property developments in IDR.

Sept 26: DRB-Hicom Bhd obtains Bank Negara’s nod to start negotiations with Primus Pacific Partners Ltd to dispose of a 20.2% stake in EON Capital Bhd.

Sept 28: Telekom Malaysia Bhd unveils demerger plan to spin off its mobile business.

Oct 1: MAS’ subsidiary MASWings officially takes over the rural air services in Sabah and Sarawak from FAX.

Oct 1: Bank Negara liberalises the foreign exchange administration rules by abolishing five registration requirements and one reporting requirement.

Oct 2: Allianz Malaysia Bhd resumes trading after a six-year suspension following its failure to comply with the minimum 25% public shareholding spread requirement.

Oct 23: Genting Bhd founder and honorary life chairman Tan Sri Lim Goh Tong dies at the age of 90.

Oct 25: The Cabinet gives nod for AirAsia Bhd to fly to Singapore from Kuala Lumpur twice daily before the region’s open sky policy takes effect in January 2009.

Nov 13: DiGi.Com Bhd offers RM654.5 million via the issue of 27.5 million shares priced at RM23.80 each for the utilisation of Time dotCom’s 3G spectrum for a 10-year period.

Nov 14: Telenor ASA cuts stake in DiGi.Com to 49% from 61% via a share placement exercise, thereby meeting the Dec 31 deadline to comply with the country’s foreign equity ownership rules.

Nov 19: Energy, Communications and Multimedia Ministry to pull back the 2.5GHz and 3.5GHz broadband spectra.

Dec 18: EPF announces exclusive negotiations with Abu Dhabi Commercial Bank to sell 25% stake in RHB Capital Bhd.

Privatisations & general offers

Jan 8: Berjaya Corporation Bhd makes voluntary general offer (VGO) of RM1.20 per share for remaining 25.6% stake in Cosway Corporation Bhd.

Jan 10: Eighth Jewels Systems Sdn Bhd makes unconditional general offer of RM1.15 per share for remaining 48% stake in Safeguards Corporation Bhd.

Jan 15: Lembaga Tabung Angkatan Tentera proposes to take Johan Ceramics Bhd private by buying remaining 40.1% at 30 sen per share.

Jan 16: Amphoteric Capital Ltd makes VGO for the remaining 160.58 million shares in Ramatex Bhd at RM2.20 per share.

Feb 21: Linde AG offers RM15 per share for 55% stake in Malaysian Oxygen Bhd, later revised to RM17 per share on June 29.

March 6: Supermax Corp Bhd offers to acquire remaining 76% of Seal Polymer Industries Bhd at RM110.56 million or RM1.10 per share.

April 13: Ann Joo Resources Bhd makes VGO to take Ann Joo Steel Bhd private by offering RM3.10 per share for remaining 32% stake.

April 23: Temasek Team Sdn Bhd makes VGO for the entire stake in Rohas-Euco Industries Bhd at RM1.80 per share.

April 24: Permodalan Nasional Bhd (PNB) offers to acquire remaining 285.31 million shares in Island & Peninsular Bhd at RM2.35 per share.

April 27: PNB offers to acquire remaining 197.24 million shares in Petaling Garden Bhd at RM2.50 per share.

May 3: Binariang GSM Sdn Bhd offers RM15.60 per share totalling RM16.4 billion for the entire stake in Maxis Communications Bhd. (Maxis was delisted on June 25. A day after the delisting, Saudi Telecom Company announced plans to buy a 25% stake in Binariang for RM11 billion.)

May 8: Boustead Holdings Bhd makes conditional voluntary offer for remaining 45.74 million shares in UAC Bhd at RM4.85 per share.

May 9: Net Edge Online Sdn Bhd and Tan Sri Vincent Tan Chee Yioun offer to acquire remaining 46.26 million shares in Nexnews Bhd at RM1.27 per share.

May 17: Computer Sciences Corporation offers to acquire entire business and undertaking of Computer Systems Advisers (M) Bhd for RM354.37 million or RM3.50 per share.

May 17: Berjaya Corporation Bhd proposes to take Berjaya Capital Bhd private by acquiring remaining 52.53 million shares in BCap at RM3 per share.

June 7: Malaysia Retail Group Ltd launches conditional voluntary takeover offer to acquire 100% of Courts Mammoth Bhd at RM1.02 per share.

June 19: AMMB Holdings Bhd launches RM2.39 billion offer for remaining 49% stake in AmInvestment Group Bhd.

Aug 8: Swan Symphony Sdn Bhd proposes to buy a 50.6% stake in Putrajaya Perdana Bhd for RM390 million or RM2.90 a share from Eastern & Oriental Bhd (E&O).

Aug 13: PNB proposes to take Malaysian Industrial Development Finance Bhd private by acquiring remaining 776.96 million shares at RM1.90 per share.
Sept 11: Ranhill Bhd offers to acquire remaining 16.46 million shares in Ranhill Power Bhd at RM2.15 per share.

Oct 9: Perspective Lane (M) Sdn Bhd, controlled by Tan Sri Syed Mokhtar Al-Bukhary, makes mandatory general offer (MGO) for remaining 38% stake in Tradewinds Corporation Bhd at RM1.36 per share.

Nov 1: DRB-Hicom makes MGO for remaining 125.99 million shares in Edaran Otomobil Nasional Bhd for RM2.10 per share.

Nov 6: Singapore Precision Engineering Ltd makes MGO for remaining 55% stake in LKT Industrial Bhd at RM3.50 per share.

Nov 9: Binary Bestari Sdn Bhd, a consortium of local and Middle East companies, proposes to acquire 45.6% or 30.98 million shares of Loh & Loh Corp Bhd for RM111.53 million cash or RM3.60 a share from Vital Achievement Sdn Bhd.

Nov 20: Multi-Purpose Holdings Bhd teams up with Hong Kong’s private equity firm CVC Asia Pacific Ltd to take the former’s 55.54%-owned Magnum Corporation Bhd private at RM3.45 per share.

Nov 27: E&O proposes to acquire remaining 37% of E&O Property Development Bhd via share exchange.

Nov 30: WCT Engineering Bhd makes VGO for remaining 35.17% stake in WCT Land Bhd for RM503.58 million.

SC enforcement actions

April 18: Two directors of GP Ocean Food Bhd, Tan Siok Wan and Lee Sin Teck, charged with providing false information in relation to its proposed listing on the Main Board.

May 22: Another two GP Ocean directors, Lim Kim Hai and Datuk Lim Kim Ming, charged withthe same.

May 28: NasionCom’s former managing director Datuk Chee Kok Wing charged with issuing a prospectus that contains misleading information, submitting false information to the SC, and authorising the making of false statements in 2005 annual report. Another director Shamsul Khalid Ismail and Mah Soon Chai, the general manager of NasionCom’s subsidiary Express Top Up Sdn Bhd, charged with submitting false information to the SC.

July 12: Transmile former MD and CEO Gan Boon Aun, ex-chief financial officer Lo Chok Ping and ex-executive director Khiudin Mohd charged with abetting the company in providing misleading financial statement for FY06.

Oct 1: SC files civil suit against FTEC Resources Bhd’s managing director Kenneth Vun, compelling the latter to restitute RM2.5 million to the company, for allegedly using the money, which was part of the proceeds raised by FTEC in an initial public offering in 2003, for his own benefit and personal use.

Nov 14: Another two ex-directors of Transmile, Chin Keem Feung and Shukri Sheikh Abdul Tawab, charged with knowingly permitting the making of misleading statement to Bursa.

Dec 10: Megan Media executive chairman Mohd Adam Che Harun charged with furnishing false statement to Bursa, and its former financial controller Kok Hen Sen charged with abetting the company in furnishing false statement to Bursa.