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Maybank Investment lists six new call warrants

April 2, 2012

KUALA LUMPUR: Maybank Investment Bank Bhd is listing six new European style cash-settled structured warrants over the ordinary shares of Berjaya Sports Toto Bhd (BJTOTO), Eastern & Oriental Bhd (E&0), Genting Malaysia Bhd, Malaysia Marine and Heavy Engineering Holdings Bhd (MHB), MSM Malaysia Holdings Bhd and Ta Ann Holdings Bhd.

The warrants, which will be listed on April 3, will have tenures of nine months and an issue size of RM100 million each, Maybank Investment said in a statement today.

“We like BJTOTO for its positive revenue and earnings reversal from 4D Toto Jackpot, defensive earnings profile and attractive dividend yields.

“We also favour MSM for its high dividend payout policy rate of 50% and its status as a government-linked company.”

With fairly inelastic sugar consumption, the demand for MSM’s products will remain stable, even under a tough economic environment, Maybank Investment said.

BJTOTO and MSM warrants are each priced at 15 sen with an exercise ratio of four and six, respectively, for every one underlying share and a gearing ratio of 7.30 and 5.68 times, respectively.

For the property sector, the bank expects E&O to release favourable announcements on their tie-up with Sime Darby on 14,973.37 hectares of undeveloped land with an estimated Gross Development Value of RM100 billion and the 307.56 hectares reclamation project in Seri Tanjung Pinang 2.

“Ta Ann’s oil palm division is growing rapidly, with its fresh fruit bunch sales volume being driven up by the rising crude palm oil prices since January 2012.

“We are issuing warrants on E&O and Ta Ann, priced at 15 sen each with anexercise ratio of two and eight, and gearing ratios of 5.33 and 4.77 times respectively.”

Meanwhile, Genting and MHB warrants are priced at 15 sen each with an exercise ratio of four and seven for every one underlying share, respectively.

The Genting warrant has a gearing of 6.53 times and MHB 5.10.

“The terms and conditions of the above call warrants are stated in their respective term sheets and should be read in conjunction with the Base Prospectus dated Sept 19, 2012,” Maybank Investment added.

– Bernama


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