Stocks on Bursa Malaysia are on an upward trajectory. Led by the heavy weight blue chips, they are on the bounce amid intermittent pauses. Apart from an earnings season that some felt was better-than-expected, companies are not just the focus of institutional and retail investors that have bought stocks in droves. Tycoons and corporate figures too started to take substantial shareholding or increase their stakes in small listed companies. Their have been buying shares prior the general election but of late, their presence is more noticable. TH Heavy In early May, Tan Sri Quek Leng Chan, via GuoLine Capital Ltd (GCL), bought 10% or 92.79 million shares in TH Heavy Engineering Bhd via a private placement for RM41.8mil. Part of that was directly through his youngest son Quek Kon Sean, who will subscribe to 27.8 million shares. GCL is a unit of Quek’s flagship Hong Leong Co (M) Bhd. TH Heavy CEO Nor Badli Mohd Alias said Quek’s presence would create value for the company through his international networking and financial resources. Now, Quek’s interest in the oil and gas sector is nothing new. In fact, he has always been an active investor in the local stock market. The observer adds that TH Heavy probably caught Quek’s eye because the company was in the transformation process. It had come out of the PN17 category and was looking to bid for big projects. TH Heavy is an up-and-coming oil and gas company that has turned around and is poised to enter the big league. Its international oil company partner is bidding for one of the Risk Service Contracts by Petronas, and it recently formalised a joint venture with oil bigwig McDermott International Inc. The joint venture with McDermott is a coup for TH Heavy as it now enables the company to bid for more complex jobs, and also immediately transforms it into a full-fledged engineering, procurement, construction, installation, commissioning (EPCIC) player. In Malaysia, there are only two other players, which are MISC and its partner Technip, and SapuraKencana Petroleum Bhd, that can provide EPCIC works. On Monday, shareholders approved TH Heavy’s proposed joint venture with McDermott, where affiliates of both companies signed a joint-venture agreement to provide a broad spectrum of marine construction services, including full EPCIC solutions, to the offshore oil and gas industry. Under the joint-venture agreement, THHE will purchase a 30% stake in McDermott’s local unit, Berlian McDermott Sdn Bhd, while McDermott will acquire 30% in THHE’s unit, THHE Fabricators Sdn Bhd. Both stakes are worth US$25.47mil (RM78.96mil).
Posted on: Sun, 14 Jul 2013 14:27:23 +0000
Trending Topics
Recently Viewed Topics
© 2015