Symphony shares hit high note on Ranhill RTO plan
Transcription
Symphony shares hit high note on Ranhill RTO plan
Symphony shares hit high note on Ranhill RTO plan - Business News | The... 1 of 5 News Business Business News Sport Metro Tech Lifestyle Opinion Videos Property Jobs Autos http://www.thestar.com.my/Business/Business-News/2014/03/28/Sympho... More Home › Business › Business News Symphony shares hit high note on Ranhill RTO plan Friday, 28 March 2014 By: EUGENE MAHALINGAM An observer says Azman is t and proper and the deal will bene t minority shareholders. PETALING JAYA: Shares of Symphony House Bhd reached a high note, propelled by news of the company’s proposed reverse takeover (RTO) by Ranhill Energy and Resources Bhd. At 5pm yesterday, the counter closed eight sen up to 21.5 sen, its highest in over three years with 158.76 million shares changing hands. Share trading of Symphony, which is involved in business process outsourcing, was suspended from Monday. It resumed yesterday. Its share price jumped 59% since it was traded at 13.5 sen last Friday. On Wednesday, Symphony con rmed a StarBiz report that it would acquire all the equity interest in Ranhill Group Sdn Bhd including its subsidiaries from Ranhill in return for new Symphony shares. Tan Sri Mohamed Azman Yahya, who is the acting chairman and group chief executive of cer of Symphony, and executive director Abdul Hamid Sheikh Mohamed would buy out the existing business of the company for RM60mil in a management buyout exercise. Under the corporate exercise, 10 existing Symphony’s shares of 10 sen each will be consolidated into one share of RM1 and issued at RM1.50. However, no value was given to the proposed exercise as due diligence on the assets to be injected into Symphony is only expected to be completed in about two months. According to a joint statement from both companies on Wednesday, the proposed RTO aimed to provide existing shareholders of Symphony with an opportunity to bene t from the Ranhill group’s growth potential in the water, power and oil and gas businesses. An industry observer pointed out that the deal augur well for both companies. “The Ranhill business is a good one. Azman is t and proper and we see the deal bene tting minority shareholders.” Ranhill’s core businesses are in the energy and environment sectors. Under the energy sector, it provides engineering and power generation services. Under its environment business, the company provides water supply services, operates water and wastewater treatment plants and provides specialised services in the management and optimisation of water utility assets. Ranhill, which recorded a net pro t of RM282.23mil on revenue of RM1.99bil for its nancial year ended Dec 31, 2012, withdrew its IPO following issues of disclosure transgression. Ranhill’s IPO plans were put on hold last year after it emerged there had been a disclosure breach related to the suspension of the licences of its af liate company, Perunding Ranhill Worley Sdn Bhd, by Petroliam Nasional Bhd for an inde nite period. The company, which had targeted to raise some RM753mil, returned the funds to its investors. Subsequently, the Securities Commission (SC) imposed a ne of RM200,000 on the company, while its substantial shareholder Tan Sri Hamdan Mohamad was reprimanded and ned RM300,000 for the failure to disclose the licensing issue. Ranhill was supposed to list on Bursa Malaysia on July 31, with about 70% of its RM753mil IPO proceeds to be utilised for the repayment of borrowings. The SC had instructed the company to postpone its IPO inde nitely on July 25 in view of the non-disclosure issue. 10/15/2015 1:39 PM Symphony shares hit high note on Ranhill RTO plan - Business News | The... 2 of 5 Our Sites Share http://www.thestar.com.my/Business/Business-News/2014/03/28/Sympho... UPDATED EVERY 5 MINUTES More Tags: Business , Ranhill , RTO , Symphony Related News Tenors add zing to Governor’s birthday concert Symphony plans RM600mil project Mall features mooncake giveaways, lantern contest and cultural performances for festival Edible handbags and jigsaw puzzles are among the sweet treats at buffet Duplex condo development draws strong interest You May Be Interested New rules for natural resources sector Singapore eases monetary policy again Trading ideas: Scan Associates, Only World Group, Atlan Intel's datacentre business seen rebounding in 2016 China plans London yuan bond sales New Air India boss bets on people power Others Also Read Campaign aims to spread awareness about infectious disease Twitter poaches Google executive Kordestani for chairman post Barca ready to take Arda registration fight to CAS Property Related 50 shades of concrete Upping your game: Residential to commercial properties 4 tricks to pick proper paint colours ADVERTISEMENT 10/15/2015 1:39 PM