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Glovemaker Supermax Corp Bhd is proposing a bonus issue on the basis of one bonus share for every four existing shares held in the company.

CIMB Investment Bank Bhd said in an announcement on behalf of Supermax that the proposed bonus issue would entail the issuance of 71.4 million shares of 50 sen each to shareholders on a date to be determined by the board of directors.

It said the rationale behind the bonus issue was to increase the capital base of the company to a level which would better reflect the current scale of operations as well as enable shareholders to have increased equity participation through greater number of shares.

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The Health Ministry’s pharmaceutical services division has revoked the manufacturing licence of Pharmaniaga Manufacturing Bhd, a wholly-owned subsidiary of Pharmaniaga Bhd, after a routine audit of the Bangi plant.

The company told Bursa Malaysia yesterday that the revocation was effective from March 1.

Pharmaniaga managing director Mohamad Abdullah told StarBiz over the phone that the ministry found a few non-compliance issues that the firm was now working to expedite.

He said the ministry officials would be returning “very soon” for another round of audit but would not say when this would take place.

“For something like this, we’re hoping that the plant will not be closed longer than a week as this will affect our suppliers,” Mohamad said.

In the announcement, Pharmaniaga said manufacturing contributed approximately 10% to the company’s turnover based on financial year ended Dec 31, 2009 (FY09) results.

“As such, the cessation of production is not expected to have a significant financial impact as the other business lines are not affected and the company believes it will be able to address the audit issues within a relatively short time,” it added.

For FY09, the company posted a net profit of RM60.19mil on revenue of RM1.30bil while for the fourth quarter ended Dec 31, 2009, the company posted a net profit of RM21.91mil on revenue of RM323.90mil.

Meanwhile, in a separate announcement, the company said its major shareholder UEM Group Bhd was evaluating options with regard to meeting the public spread requirement of Pharmaniaga by March 29.

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The Employees Provident Fund (EPF) has made a conditional takeover offer to buy all the shares in Malaysian Resources Corp Bhd (MRCB) for RM1.50 each after triggering the takeover threshold.

The exercise could see EPF pay up to RM1.36bil for MRCB if there was full acceptance from other shareholders.

The conditional offer was prompted after EPF was allocated additional shares under MRCB’s RM566mil rights issue that led to the fund’s shareholding in the developer exceed 33% to 33.78%

The increase in EPF’s shareholding past the 33% threshold obliged the fund to conduct the takeover under the Malaysian Code on Take-Overs and Mergers, 1998.

In a statement to Bursa Malaysia yesterday, MRCB said EPF, however, intended to maintain the listed status of MRCB and would not privatise the company.

OSK Research head Chris Eng said the offer of RM1.50 a share was slightly below the brokerage’s fair value and that the offer itself was not very attractive.

“There is a lot more potential in the company which we have not factored into the fair value of the stock,’’ he said.

MRCB is talked about being a bidder for major tracks of land in the Klang Valley and the money it raised from the rights issue would go towards buying land for future development projects.

Analysts said its track record in developing KL Sentral would act as a good platform for MRCB in making its case in any bids for such land.

Sources said EPF was unable to apply for a waiver from making the takeover from the Securities Commission as it did not fulfil an important criterion, which is the condition of not trading a company’s shares in the past six months.

Under the Code, EPF would have to offer to shareholders of MRCB the highest price it paid to buy an MRCB share over the past six months, sources said.

The offer for MRCB represents a small 2% premium over the last traded price of the stock of RM1.47. Sources said EPF wanted to make a fair offer but did not intend to give large premiums of around 20% seen in other privatisation deals as it was not the fund’s intention to delist the company from the stock exchange.

“It does not want to take the company private and would like to see future capital appreciation of MRCB,’’ the source said.

Sources also shot down suggestions that the takeover offer was a new strategic direction for the fund where it would prefer direct control of companies.

Although EPF controls RHB Capital Bhd and Malaysian Building Society Bhd, it does not want to take MRCB down the same path.

Sources said even if EPF, which also owns large stakes in other developers such as IJM Corp Bhd, dramatically increases its stake in MRCB, it would not make MRCB its vehicle for property ventures.

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