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(1) PacificMas Bhd said it has received an offer from OCBC Capital (Malaysia) Sdn Bhd to acquire PacificMas’s entire equity interest in five subsidiaries for a total consideration of RM450 million. OCSB will pay RM164.2 million in cash, PacificMas said in a statement to the stock exchange today.

(2) Leader Universal Holdings Bhd, a Malaysian cable and wire maker, received a buyout offer valued at RM480.1 million from HNG Capital Sdn Bhd, according to a statement to the Kuala Lumpur stock exchange. HNG offered the equivalent of RM1.10 a share for the entire business of Leader, the company said. The money raised from the sale would be distributed to Leader’s shareholders, according to the proposed offer, it said.

(3) Hap Seng Consolidated Bhd shares valued at RM154 million changed hands in an off-market transaction, according to Kuala Lumpur stock exchange data. Some 100 million shares, amounting to a 4.6 percent stake, traded at RM1.54 apiece, the data showed. The stock closed at RM1.60, up 8.1 percent, the most since May 6, 2009.

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Hap Seng Consolidated Bhd, which expects to raise RM1.5bil through placements and rights issues, intends to utilise the proceeds for growth initiatives in property investment and development, auto dealerships and building materials.

Additional proceeds from the exercise of the warrants would be utilised for working capital purposes, managing director Datuk Edward Lee Ming Foo said.

“Malaysia’s economy is poised for significant growth over the coming years. With our key businesses in property investment and development, auto dealerships, fertilisers, plantations and building materials, we believe we are well positioned to execute our expansion plans and benefit from that growth,” he said in a statement on Bursa Malaysia yesterday.

Datuk Edward Lee Ming Foo says Hap Seng is well positioned to execute its expansion plans

Additionally, Hap Seng said it had set its dividend policy to pay out up to 50% of profits after tax going forward.

Chairman Datuk Jorgen Bornhoft said in the same statement that it was part of the company’s move to reward its shareholders for their continued support.

“These proposals are intended to both reward them for their loyalty and set the stage for Hap Seng to achieve its growth ambitions.”

Last week, the company announced that it was proposing a rights issue of up to 448.31 million shares together with up to 448.31 million new free detachable warrants on the basis of one rights share together with one warrant for every five Hap Seng shares held.

The bonus issue being proposed will involve up to 1.49 billion new shares to be credited as fully paid-up on the basis of two bonus shares for every one existing Hap Seng share on an entitlement date to be determined and announced later.

The company’s proposed private placement will involve up to 124.53 million new ordinary shares of RM1 each representing up to 20% of the issued and paid-up share capital of the company.

The proposed increase in the authorised share capital will boost the share capital to RM5bil from the present RM1bil.

The proposals are subject to shareholder approval and applicable regulatory approvals, with further details to be made available in the company’s circular to shareholders, which it intends to dispatch by end February following customary regulatory reviews and approvals.

Related Posts:

• Bloomberg News – Pacific Mas, Leader Universal, Hap Seng
• Hap Seng Realty owns 50% of Menara Citibank

Hap Seng Realty (KL City) Sdn Bhd, a wholly-owned subsidiary of Hap Seng Consolidated Bhd, has acquired a 50% stake in Inverfin Sdn Bhd, the owner of Menara Citibank in Jalan Ampang, Kuala Lumpur.

According to a company filing with Bursa Malaysia yesterday, the 50% adjusted net asset value of Inverfin as at Dec 31, 2008 was RM235.39mil.

The vendors are CapitaLand Ltd that holds 30% in Inverfin and Amsteel Corp Bhd, which has a 20% stake.

Menara Citibank, previously known as Menara Lion, is parked under Inverfin. The remaining 50% stake in the company is held by Menara Citi Holding Co Sdn Bhd.

CapitaLand’s 30% stake comprises three million ordinary shares while Amsteel holds 2,000,001 ordinary shares in Inverfin.

According to Hap Seng Consolidated group managing director Datuk Edward Lee Ming Foo, the purchase was in line with the company’s corporate strategy to expand the its property holding and development division.

“Demand for prestigious office space in the heart of the Golden Triangle has not waned despite the global economic downturn.

“Based on our experience in the market, we expect demand to remain robust, if not improve, while supply is naturally kept limited in super-prime areas such as these,” he said in a statement yesterday.

The 50-storey Menara Citibank has a net lettable area of about 68,000 sq m.

“The unique propositions of Menara Citibank offer potential for rental growth as well as capital appreciation.

“This will bode well for the group in terms of sustained recurring income and long-term value for its property division,” Lee added.

Menara Citibank will be the second major acquisition by Hap Seng.

In 2004, it bought the 22-storey MUI Plaza from the MUI Group. The company spent some RM60mil on the purchase, including refurbishing the building.

A CapitaLand statement said the consideration of RM145.1mil for its Inverfin stake would be wholly satisfied in cash and was subject to a post-completion adjustment of the net asset value of Inverfin at the completion date, which is expected to be in November.

It further said the completion of the sale was subject to the fulfilment of certain conditions set out in the agreement. Upon completion, Inverfin will cease to be an associated company of CapitaLand.

In response to queries from StarBizWeek, a CapitaLand spokesman said the divestment of the company’s stake in Menara Citibank was in line with its proactive portfolio management, which included asset enhancement and strategic investment and divestment decisions.

“Malaysia remains one of CapitaLand’s key markets in South-East Asia and the company continues to have a presence in the commercial, retail, residential, serviced residence and real estate financial services sectors in the country.

“The real estate market has immense underlying potential. The Government’s pro-business policies have presented many opportunities for international real estate companies like CapitaLand to leverage on its multi-sector and multi-local strategy.

“Riding on this positive backdrop, CapitaLand will continue to strengthen its footprint in Malaysia,” he added.

Related Posts:

• Bloomberg News – Pacific Mas, Leader Universal, Hap Seng
• Hap Seng on RM1.5bil fund-raising drive