- Written by Fong Min Hun
Friday, 16 July 2010 12:18
KUALA LUMPUR: UEM Group’s proposed sale of its 45% stake in Time Engineering Bhd is expected to be announced as early as Monday, which is strong evidence of the acceleration of the conglomerate’s asset disposal programme, sources said.
The identity of the purchaser could not be ascertained at press time.
Sources close to the deal told The Edge Financial Daily that a buyer had been found as UEM continued to pare down its non-core businesses in line with the transformation programme for government-linked companies.
The disposal of Time Engineering shares was previously reported to be at around 50 sen apiece. The counter closed half a sen higher at 41 sen yesterday.
This is the second sale by UEM Group in as many months, with the first sale of Pharmaniaga Bhd to Boustead Holdings Bhd announced last month. It is believed that UEM has plans for other asset disposals as well, including the sale of Faber Group Bhd.
It is believed that one of the casualties of the Time Engineering sale is its chief executive, Steven Lim Kee Seng, who has been instrumental in the company’s changing fortunes. He had twice turned around the company — once as its general manager and most recently as CEO. Having rebounded solidly into the black, the company paid its first cash dividend this year worth one sen net.
Time Engineering has been securing jobs internationally, and was planning to make its impact felt in the domestic market.
Lim was believed to be at odds with the board as well as the parent company, UEM Group, and this is likely to lead to his departure from the company, a source said.
Meanwhile, Time Engineering disposed of a total of 40.3 million shares in Time dotCom Bhd (TdC) for RM20.83 million as at June 15, the company said in an announcement to Bursa Malaysia.
This works out to about 51.6 sen per TdC share, which is on the high end of its trading range. TdC closed at 52 sen yesterday, a more than a two-year high. The last time its share price crested that mark was on April 23, 2008.
Prior to the disposal, Time Engineering held 726.18 million TdC shares, which had been pledged to Bank Pembangungan Malaysia Bhd as security for 712.5 million redeemable secured loan stocks, which held a nominal value of RM342 million, or 48 sen per loan stock. Time Engineering would have redeemed some 43.4 million loan stocks with the RM20.83 million obtained from the disposal of the TdC shares, assuming interest costs are not factored into the redemption.
Time Engineering, post the disposal, holds a 27.1% stake or about 685.88 million shares in TdC. The company said in the announcement that the sale proceeds would go to Bank Pembangunan to redeem the loan stocks. Any excess proceeds would be used for working capital.
Time Engineering’s present stake in TdC is worth about RM356.66 million, based on the 52 sen a share price. This is equivalent to 46 sen per Time Engineering share, based on its issued capital base of 775.245 million shares.
Ah.. the markets is hot.. what's better than to used the famed 'According To Sources ' style of reporting to seduce punters?
Spice up the stock... spice up the market... fry sotong fry!
The stock closed trading the previos day at 41 sen.
The stock chart.
So how did you the stock do on the 16th July?
Of course, the stock flew to the moon. (Perhaps the stock was looking for the Moo Moo Cow who so happened jumped over the moon. :P )
Hallelujah!
(ps: who said it was difficult to make money from the 'pasar saham'? :P )
Meanwhile Time Engineering gave the following reply on Bursa website.
- We refer to the article entitled "TIME Eng sale next week? UEM Group steps up asset disposals; next to go could be Faber" appearing in the Edge Financial Daily on Friday, 16 July 2010.
We wish to inform that the Board of Directors of TIME Engineering Berhad ("Company") has not received any formal notification from UEM Group Berhad on the intention to sell its 45.3% stake in the Company.
This announcement is dated 16 July 2010.
On Monday, 19th July 2010, the EdgeFinancial Daily carried the following article : At least 4 suitors for Time?.
LOL! Apparently the first article wasn't convincing enough. I guess. :P
This time, that according to sources pro... Jose Barrock joins in.
LOL!
- At least 4 suitors for Time?
Written by Fong Min Hun & Jose Barrock
Monday, 19 July 2010 11:20
KUALA LUMPUR: UEM Group Bhd has received at least four bids or offers to purchase its stake in Time Engineering Bhd, with prices ranging from 20 sen to 40 sen a share, sources said.
Who the sources ah? Is it Auntie Sim from the cafeteria? LOL! Price between 20 and 40 sen? LOL!
LOL! Who could the source be NOT CLEAR how much of equity that UEM wants to part with? How can? I mean.. either the source knows or dunno! Right? What a load of sources! :P
- The sources said the internal deadline for UEM to make a decision on the stake sale had been pushed back to the end of this month or early August.
Time Engineering officials declined to comment on the planned sale when contacted by The Edge Financial Daily.
A source said the bidders included an ICT company, which is interested in Time Engineering’s 27.1% stake in Time dotCom Bhd (TdC).
Err... this 'A source' same with the other source ah? LOL!
- Last Thursday, Time Engineering announced that it had disposed of some 40.3 million TdC shares for RM20.83 million, which works out at about 51.7 sen apiece.
Time Engineering had received its shareholders’ mandate in July 2009 to sell its entire stake in TdC at no less than 48 sen a share.
The TdC shares are at present pledged to Bank Pembangunan as security for loan stocks issued by Time Engineering to satisfy some RM342 million of debt to the bank.
As at end-March this year, Time Engineering owed Bank Pembangunan some RM305.61 million, according to the company’s balance sheet.
TdC’s share price has been steadily rising, hitting a 28-month high of 54.5 sen last Friday.
UEM has denied that an announcement about the sale of its stake in Time Engineering will be made this week, refuting news reports last week.
According to its announcement to Bursa Malaysia last Friday, Time Engineering itself, responding to an article in The Edge Financial Daily, said it had not received any “formal notification” from UEM regarding the disposal of the latter’s 45.3% stake in the company.
Time Engineering, once the high-flying ICT arm of the debt-ridden Renong Group, saw its fortunes dwindle after the group was forced to dispose of its assets to UEM in a controversial rescue of the ailing conglomerate.
The company subsequently fell into PN17 status in 2008, resulting in many quarters writing it off. However, a subsequent turnaround in 2009 caught many by surprise.
Time Engineering restructured its debts, started securing projects overseas and managed its costs, resulting in a small profit in 2009.
Much of these improvements were attributed to current CEO Steven Lim Kee Seng.
Time Engineering paid a cash dividend for the first time in 13 years this year, raising hopes of investors that the worst is behind it.
In terms of valuation, Time Engineering’s key assets include the Dagang.Net group of companies, which has been appointed the service provider to develop the country’s National Single Window trade facilitation system by the finance ministry.
The source told The Edge Financial Daily that Time Engineering had received a bid to sell its 71.25% stake in Dagang.Net for RM90 million, but that was turned down, as the bid was too low.
Time Engineering’s stake in TdC is also seen as a valuable asset, particularly now as the latter’s share price has been rising.
At last Friday’s price of 54.5 sen per share, Time Engineering’s 27.3% stake or 685.9 million shares was worth RM373.8 million.
Time Engineering also has about RM100 million in cash, and no debts, except for the loan stocks issued to Bank Pembangunan.
The source said the valuation of the tangibles alone would price the company at between 20 and 30 sen, but this does not take into consideration the future revenue of the company.
Time Engineering is also understood to have amassed an orderbook of some RM1 billion, silently and steadily bagging jobs abroad.
Given the stiff competition and rapid changes in the ICT industry, UEM has never been able to realise the Time Engineering group’s potential.
In view of improving conditions and suitors at its doorstep, could this now present the right opportunity for UEM to finally dispose of the Time Engineering group, in line with the government’s asset disposal plan?
This article appeared in The Edge Financial Daily, July 19, 2010.
ROFLMAO!
And naturally the stock flew up some more! How could it not fly?
Now given what has had happened, how could UEM not make a formal statement?
Faber not for sale
- ...... As for Time Engineering, he said: “There is no sale, not today, not in three months.”
He was responding to a query at a media luncheon yesterday on a report quoting sources as saying UEM Group had received at least four bids or offers to purchase its stake in Time Engineering for 20 sen to 40 sen a share.
In a later statement, Izzaddin said: “At the moment, we have not commenced on any process to divest our 45.2% stake in Time Engineering.
“As a responsible shareholder, any divestment to be made must be structurally sound whereby it is our role to ensure that the potential buyer(s) meet a minimum set of criteria such as financial standing, track record in business expansion and management excellence as well as proposed business and value creation plan.”
The report said the Time Engineering stake was expected to be sold this week and UEM Group would also sell its 34% equity in Faber, which is involved in the integrated property management business.
UEM Group has long mulled over divesting its 45.03% equity interest in Time Engineering which is seen as a non-core asset. But as Izzaddin put it, UEM Group also wants to recoup its initial investment in Time Engineering, thus the need to build up the company to attract potential buyers.
Time Engineering has a 27% stake in Time dotCom Bhd, which owns a fibre optic network than spans across Peninsular Malaysia.
Time Engineering is an information technology infrastructure service provider that offers services and solutions catering to both domestic and international markets. Its unit Dagang Net Technologies Sdn Bhd provides similar services....
Ahem: “There is no sale, not today, not in three months.”
The stock... naturally... corrected.
LOL!
ps: I like the chart below better... it's more... err... CLEAR!
ps: 3 months ago.. this stock was just trading at 31 sen. :D
ps: I dunno lah. :P
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