News Highlights - Wah Seong Corporation, RHB Capital, Felda Global Ventures Holdings

Wah Seong Corporation Bhd (RM1.82/share)

Completes acquisition of 57.7m Petra Energy shares

Pipe-coating specialist Wah Seong Corp Bhd has completed the acquisition of 57.7 million shares in Petra Energy Bhd at RM1.68 per share. Stock market data showed the shares, representing a 26.9% stake, were transacted in several off-market deals on Tuesday. At RM1.68, this was 23 sen below the Monday’s closing price of RM1.91.

To recap, the Petra Energy block of shares was divested by Perdana Petroleum Bhd due to its inability to control much of the business direction in the former. Wah Seong is the second-largest shareholder in the integrated oil and gas (O&G) brown field services provider with the finalisation of the deal. – StarBiz

RHB Capital Bhd (RM7.28/share)

To expand customer base

RHB Capital Bhd (RHBCap) is looking at expanding its customer base especially in the premier banking segment. RHB Bank Bhd director of retail banking Vince Au Yoong said that they are looking at attracting more affluent customers, those with more than RM200,000 worth of asset under management, which is known as premium banking segment. – StarBiz

Felda Global Ventures Holdings Bhd (RM5.02/share)

Bullish about its full year prospects

Felda Global Ventures Holdings Bhd (FGVH) is bullish about its full year prospects despite recording a lower profit for the first six months in the current year compared with the previous year.

Group president Datuk Sabri Ahmad said they expect yields to improve in the coming months, and price of crude palm oil to peak to RM3,300 per tonne by year end due to strong demand especially from China and India.

For the half year financial period ended June 30, 2012, FGVH’s profit after tax and non-controlling interest stood at RM381mil as compared to RM638mil for the same period in 2011. Sabri said the lower profit was mainly due to the increase in cost of sales as well as the incurrence payment for land lease and 15% profit sharing with the Federal Land Development Authority (Felda) as in the Land Lease Agreement (LLA) liability which amounted to RM140.5mil for the half year period.

In the first six months of 2012, FGVH incurred higher costs relating to replanting and manuring, primarily reflecting higher volume of fertilizer used as well as higher fertilizer price. Some RM100mil has been spent towards replanting and FGVH targets to replant 15,000 hectares of estates each year. There was also one-time incurrence of expenses related to FGVH’s recent listing exercise amounting to RM40mil.  - Bernama

Source: AmeSecurities