Friday 28 September 2012

Kenanga JIT News - LDHB, MyEG


Lion Diversified: It will be meeting its creditors in Oct 2012 to discuss the restructuring of its US$132 million exchangeable bonds due on Nov 16, 2012.

LDHB is meeting the bondholders to extend the maturity of the bonds, which are exchangeable for shares in Parkson Holdings Bhd, by two years to Nov 16, 2014. The redemption of the bonds will be a full value on the extended maturity date.

LDHB will also make additional partial redemption on and after Nov 16, 2012 and intends to reduce the yield o the bond from 9% per year to 6% per year. LDHB is also resetting the change price to between rm3.97 per share and rm5.30 per share in the extended tenure of two years.

As at 27 Sept 2012, the outstanding amount of the exchangeable bonds was US$68.29 million.


MYEG: It is poised to see an acceleration of earnings in the medium term, spurred by the introduction of new Road Transport Department, immigration and customs-related services.

Its portfolio of services continues to grow although growth rates will inevitably slow as they near market share saturation levels. It is seeing increasing market share and customer acceptance. The underlying market for its range of services is large, with recurring demand supported by the growing popularity of online services.

Its near term earnings will continue to be driven by its JPJ services, road tax renewal and insurance premiums, while the introduction of new services will spur future growth. These services are supported by a large number of vehicles and drivers and high transactional frequency.

The company is introducing new services that will spur growth, including a just launched online vehicle registration transfer service. Future plans include a registration number bidding system.

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