Cycle & Carriage Bintang likely to hit limit-up again after today’s surge
SUNBIZ (Nov 12) PETALING JAYA: Cycle & Carriage Bintang Bhd’s (CCB) shares surged to a six-month high today, following news that its major shareholder Jardine Cycle & Carriage Ltd (Jardine CCL) was proposing to take the company private.
CCB shares hit limit up at RM1.67, a rise of 38 sen or 29.46% after it resumed trading today with 49,000 shares done. It is likely to see the stock hitting another limit-up to trade closer to the offer price of RM2.20 per share.
To recap, Jardine CCL proposed taking CCB private via a selective capital reduction and repayment exercise at RM2.20 per share, a 91 sen or 70.5% premium against its previous traded price of RM1.29.
According to a filing with Bursa Malaysia, Jardine CCL said the rationale for the proposed SCR came on the back of several reasons, namely: a challenging operating and trading environment, a long term commitment by Jardine and additional capital investments expected for CCB, an opportunity for entitled shareholders to realise their holdings, and seeing a minimal benefit from the listing status.
The acceptance period for the proposed SCR will close on Dec 6.
CCB is the dealer of Mercedes-Benz vehicles in Malaysia. For the nine-month period up to September 2019, CCB incurred a net loss of RM16.95 million against a net profit of RM17.82 million in the same period last year.
- CCB? Nay. I’d like to do a song. Of great social and political import. It goes like this. Oh Lord, won’t you buy me a Mercedes Benz. My friends all drive Porsches, I must make amends. Worked hard all my lifetime, no help from my friends. So Lord, won’t you buy me a Mercedes Benz….
MUI Properties to take 40.7% stake in Australian gold explorer Nex Metals
SUNBIZ (Nov 12) PETALING JAYA: MUI Properties Bhd’s wholly owned subsidiary Cesuco Trading Ltd, will be taking up a 40.73% stake in ASX-listed gold exploration company Nex Metals Explorations Ltd, following the conversion of a A$1.5 million secured convertible note.
In a statement, MUI said Cesuco Trading, its Hong Kong-based investment company, had advised Nex Metals Explorations Ltd of its decision to exercise the share conversion.
“We are excited to take a significant position in the gold exploration industry in Australia. Having taken into account all underlying factors, we feel the time is right to invest in this sector, which has vast potential,” said MUI group chairman and CEO Andrew Khoo.
Since August 2018, gold prices have climbed from US$$1,180 per ounce to US$$1,529 in September this year. It is currently trading at above US$$1,450.
Based in Perth, Nex Metals’ gold projects include the Yundamindera and the Kookynie mining leases covering a total area of 6,746 hectares in the north-eastern goldfields of Western Australia.
This year, Nex Metals entered into a farm-in agreement with Metalicity Limited, another listed mineral exploration company in Australia, to undertake exploratory drilling on nine separate gold mining sites in the Kookynie area.
- Are you looking for gold, my friend? Look at MUI tomorrow. Me? Nay.