www.4-traders.com - AmBank (M) Berhad ("AmBank") is issuing six new European style cash-settled structured warrants to meet investor demand for investment alternatives and trading opportunities. For AmBank's upcoming issuance, there will be six call warrants ("CW") over the ordinary shares of BIMB Holdings Berhad ("BIMB"), Eastern & Oriental Berhad ("E&O"), MMC Corporation Berhad ("MMCCORP"), Petronas Dagangan Berhad ("PETDAG"), Time Dotcom Berhad ("TIMECOM") and UOA Development Berhad ("UOADEV"). The structured warrants will have tenures of approximately eight months each and will be listed on 22 February 2012 with issue size of up to 100 million each. All six structured warrants will be listed via the market making method. (source)
"The Malaysian stock market registered strong gains after the Chinese New Year holidays as the FBMKLCI hit new highs above the 1,560 level. Trading volumes were very robust as investors and traders returned to the stock market in a big way. Penny stocks and lower liners benefited from the renewed interest. This is encouraging considering the continued uncertainty surrounding the Greek austerity measures and overall Eurozone debt situation. For AmBank's latest tranche of structured warrants, AmBank will be issuing six new call warrants that offer a good mix of investment and trading opportunities for investors across various sectors. As the FBMKLCI continues on its uptrend, these counters are also expected to benefit from potential M&A activities reported/announced to date," said Ms Ng Ee Fang, Director/Head, Equity Derivatives, AmInvestment Bank Berhad.
BIMB's subsidiary Bank Islam has been reported recently by the press to be
eyeing a significant stake in Bank Muamalat, Indonesia's second largest Islamic
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lender. Bank Muamalat is based in Jakarta with at least 350 offices in and around Indonesia. Indonesia is the world's most populous Muslim nation and therefore offers opportunities to Islamic lenders like BIMB much room for future growth. Bank Muamalat is currently controlled by Middle East shareholders where Islamic Development Bank, Boubyan Bank Kuwait and Sedco Group collectively own just over 75 percent. AmBank's CW on BIMB is priced at 15 sen with gearing of 7.27 times.
Property developer E&O will be building a wellness-themed township named Medini Integrated Wellness Capital in Iskandar Malaysia, Johor. The township is estimated to have a gross development value of RM3 billion, covering an area of
210 acres in Medini. E&O will be partnering Khazanah Nasional and Temasek
Holdings, the sovereign wealth funds of Malaysia and Singapore respectively, for the project with E&O responsible for sales, marketing and overall project management. Asides from its latest property project, the suit filed by E&O minority shareholder Michael Chow against the Securities Commission for failing to compel Sime Darby to make a general offer for E&O is still pending. Last year, Sime Darby had acquired a 30 percent stake in E&O from three major shareholders at RM2.30/share or a 60 percent premium to open market price. AmBank's CW on E&O is priced at 15 sen with gearing of 5.77 times.
MMCCORP's joint venture with Gamuda, which had been appointed the Project Delivery Partner (PDP) for the Klang Valley Mass Rapid Transit (MRT) project, will earn a 6% fee on total project cost, excluding the tunneling portion. Based on initial cost estimates, PDP fee of 6% and MMCCORP's 50% share, it stands to earn RM360 million for the Sungai Buloh-Kajang MRT line which is scheduled to be completed by 2017. As for the tunneling portion of the Sungai Buloh-Kajang MRT line, it is estimated to cost between RM7-8 billion with the MMCCORP- Gamuda joint-venture widely considered to be a front-runner for the job. However, if it fails to land the tunneling job the JV will be entitled to collect management fees for that portion. Other potential catalysts for MMCCORP are a potential relisting of Malakoff, upcoming listing of Gas Malaysia and potential acquisition of Keretapi Tanah Melayu. AmBank's CW on MMCCORP is priced at 15 sen with gearing of 6.62 times.
PETDAG continues to see strong growth as it expands its wide network of retail stations where it is looking to hit number 1,000 sometime in 2012. It has four
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core businesses which are retail, commercial, liquefied petroleum gas (LPG) and lubricants. PETDAG enjoys market leader status for its LPG business and is looking to launch a new service in mid-2012 to improve customer experience. It is also looking to become the new market leader in the retail sector as it surpasses 1,000 retail stations. Moving forward, PETDAG is exploring further growth opportunities outside of Malaysia. AmBank's CW on PETDAG is priced at
15 sen with gearing of 8.44 times.
TIMECOM is looking to transform itself into a regional wholesale player via the acquisition of a number of companies such as AIMS Group, a leading carrier neutral data centre in South East Asia and Global Transit Communications Sdn Bhd, a regional Internet service and backhaul provider for telecommunication service providers. The transactions are expected to be completed by early 2012 and will move TIMECOM up the value chain as it expands its capabilities to serve the multi-billion dollar ASEAN, Indo-China and North Asian markets. In its latest earnings announcement for 3Q11 (ended Sept 30, 2011), TIMECOM registered a net profit of RM40.7 million, an increase of 94% from a year ago. It also marked the 10th consecutive quarter of profit with sustained growth in earnings. AmBank's CW on TIMECOM is priced at 15 sen with gearing of 4.87 times.
Property developer UOADEV is well known for its flagship development in Bangsar South which spans 60 acres and has an estimated gross development value(GDV) of RM8 billion. To date UOADEV has successfully completed a number of office blocks in Bangsar South, the latest being The Horizon Phase II, as well as two high rise condominium blocks. The Bangsar South project is still ongoing along with several others in the Klang Valley such as One@Bukit Ceylon Hotel Suites. UOADEV is also looking to launch another six projects in 2012 with GDV above RM1 billion. AmBank's CW on UOADEV is priced at 15 sen with gearing of 5.00 times.
This offer is aimed at sophisticated traders who want to trade on the direction and volatility of BIMB, E&O, MMCCORP, PETDAG, TIMECOM and UOADEV. The new CWs have gearings ranging between 4.87 and 8.44 and are targeted at
investors who want leveraged exposure to the underlying counters.
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About AmBank Group
Established in August 1975, AmBank Group is one of the largest banking groups in Malaysia by market capitalisation and comprises AMMB Holdings Berhad and its subsidiaries AmInvestment Bank Berhad, AmInvestment Group Berhad, AmBank (M) Berhad, AmIslamic Bank Berhad, AmG Insurance Berhad and AmLife Insurance Berhad.
The Group provides a wide range of conventional and Islamic banking and financial solutions, including investment banking, commercial banking, corporate banking, retail banking as well as underwriting of life and general insurance.
Adding greater value to this one-stop financial hub is the Group's strategic partnership with the Australia and New Zealand Banking Group (ANZ), one of Australia's leading financial institutions, providing the synergy of a wide network, regional presence and international banking expertise.
For more information, please visit ambankgroup.com
For more information on call warrants, please visit our website www.amwarrants .com For general enquiries, please contact 03-9235 3388 or email to ED-SS@ambankgroup.com For media enquiries, please contact Ms Ng Ee Fang, Director/Head, Equity Derivatives, AmInvestment Bank Berhad at tel: 03-2036 1384 or via email at
ng-ee-fang@ambankgroup.com
Source: http://www.4-traders.com/AMMB-HOLDINGS-BERHAD-6491147/news/AMMB-HOLDINGS-BERHAD-AmBank-Issues-Six-New-Call-Warrants-14034644/- Feb 21, 2012
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