Abric

Abric

Postby winston » Sun Sep 07, 2014 8:26 pm

not vested

Abric board keen to monetise business given interest shown by foreign party
July 23, 2014

BY LIZ LEE

Abric’s manufacturing facilities are among the largest and most modern in the industry, being able to produce over one billion security seals yearly. Its three manufacturing plants are in Perak, Malaysia, Thailand and Shanghai, China.


PETALING JAYA: The board of Abric Bhd is looking to divest its core business and explore other opportunities, given the entry of a foreign party who is interested in its security sealing solutions business.

A source said if the board agreed to the foreign party’s offer terms post the due diligence exercise, Abric would go ahead and unlock the value of its entire business in manufacturing and selling security seals.

“Abric will become a Practice Note 16 cash counter. The board will decide what to do with the money later as there is no concrete plan at the moment,” the source said, adding that part of the divestment proceeds would be distributed to shareholders while a portion would be kept by the board for future ventures.

If Abric’s divestment goes through, it will have six months to regularise and decide on its next course.

The source said the undisclosed foreign party was a “big multinational company” but did not elaborate on the nature of business it was involved in.

“The board thinks this is a good time to monetise the business,” the source explained.

In its 2013 annual report, Abric noted that it was a leading security seal provider selling to 88 countries.

The company, established in 1983, has a patent for a security seal which was initially used for the plantation industry in Malaysia. The security seal design is now a global industry standard.

Abric’s manufacturing facilities are among the largest and most modern in the industry, being able to produce over one billion security seals yearly.

Its three manufacturing plants are in Perak, Malaysia, Thailand and Shanghai, China.

On Monday, Abric announced on Bursa Malaysia that it received a non-binding indication of interest from an undisclosed party to acquire its core business.

The company said its board had deliberated on the matter and had agreed to offer exclusivity to the interested party for a due diligence exercise to be conducted for the purpose of determining the definitive terms of the offer.

The due diligence is expected to be completed within two months.

The board had said the interest was at the preliminary stage as the due diligence had yet to commence which may or may not lead to a definite offer from the interested party.

Company executive chairman Datuk Ong Eng Lock owns a 7.07% stake in Abric while his spouse is indirectly a major shareholder of the company via Abric Capital Sdn Bhd with a 28.90% stake.

Abric closed 1.5 sen lower yesterday at 69 sen. In the intra-day trade, the counter rose as high as 73 sen, on a volume of 2.49 million shares.

Last Thursday, it hit a year-to-date high of 72.5 sen, 159% up from 28 sen at the start of this year.

Abric’s net profit for the first quarter ended March 31, 2013 slipped to RM333,000 from RM610,000 a year ago, mainly due to a decrease in revenue and higher raw materials and labour costs, which affected its margins from sales.

Revenue for that period was lower at RM19.09mil from RM20.07mil a year earlier.

In the notes accompanying the financial results, the company said the Asia-Pacific and America regions were expected to contribute to sales growth as the sluggish economic condition and shrinking purchasing power in Europe continued to challenge the group, along with rising operating expenses especially raw materials and labour costs.

Source: The Star
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 101102
Joined: Wed May 07, 2008 9:28 am

Re: Abric

Postby winston » Sun Sep 07, 2014 8:34 pm

not vested

Undisclosed party keen on acquiring Abric's core business
July 22, 2014

PETALING JAYA: Abric Bhd has a received a non-binding indication of interest from an undisclosed party to acquire its core business.

The company told Bursa Malaysia yesterday that its board had deliberated on the matter and had agreed to offer exclusivity to the interested party for a due diligence exercise to be conducted for the purpose of determining the definitive terms of the offer.

The due diligence is expected to be completed within two months.

“The board wishes to inform that the interest is at the preliminary stage as the due diligence has yet to commence and may or may not lead to a definite offer from the interested party.

“Should there be any further development on this matter or upon the receipt of an offer with definitive terms, the board will assess and advise the shareholders on the offer,” it said.

It added that an announcement would be made to Bursa Malaysia in accordance with Bursa Securities listing requirements.

The company did not reveal any other information regarding the potential acquisition.

The announcement seems to justify the company’s year-high share price of 72.5 sen on July 17.

Established in 1983, Kuala Lumpur-based Abric is a global provider of security sealing solutions and has presence in 88 countries.

Company executive chairman Datuk Ong Eng Lock owns a 7.07% stake in Abric.

According to Abric’s annual report, Ong’s spouse is indirectly a major shareholder of the company via Abric Capital Sdn Bhd with a 28.90% stake.

The company’s net profit for its first quarter ended March 31, 2014 slipped to RM333,000 from RM610,000 in the previous corresponding period, mainly due to a decrease in revenue and higher raw materials and labour costs, which affected its margins from sales.

Its revenue was lower at RM19.09mil from RM20.07mil a year earlier.

On its outlook, the company told Bursa in its notes accompanying its first-quarter results that the Asia-Pacific and America regions were expected to contribute to sales growth.

It said the sluggish European economic condition, together with the shrinking purchasing power in Europe, continued to be a challenge to the group along with rising operating expenses especially raw materials and labour costs

Source: The Star
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 101102
Joined: Wed May 07, 2008 9:28 am

Re: Abric

Postby winston » Sun Sep 07, 2014 8:36 pm

not vested

Eye on stock BY K.M. LEE
June 14, 2014

ABRIC Bhd (Abric) scaled to a high of 54 sen during intra-day session on Thursday, the best level since March 2005, amid continuous bargain hunting interest before retracing slightly to trade range-bound on consolidation owing to an apparent profit-taking activity, closing down two sen to 50 sen yesterday.

Based on the daily bar chart, the bulls had broken out of the stiff resistance of 49 sen on Thursday. It looks real, as the major breakthrough was supported by an encouraging trading volumes.

Theoretically, prices are expected to sustain the upward momentum on continuous bargain hunting going forward.

Perhaps, traders can consider taking up a position while the bulls pause for air apparently.

Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were on the rise. It had triggered a short-term buy near mid-range on Tuesday.

The past week witnessed the 14-day relative strength index touching a low of 66 in mid-week before curving up to settle at the 77 points level yesterday.

Meanwhile, the daily moving average convergence/divergence histogram sustained the upward expansion against the daily signal line to retain the bullish note. It had issued a buy mid last month.

Technically, most of the indicators are painting a promising landscape, implying Abric shares are poised to firm in the intermediate term, with initial resistance anticipating at the 69-70 sen band.

If the bulls could overcome this barrier, the next target to look for would be the 94 sen-RM1 range.

As for the downside, current support is pegged at the 14-day simple moving average (SMA) of 44 sen. An additional floor is resting at the 21-day SMA of 42 sen.

Source: The Star
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 101102
Joined: Wed May 07, 2008 9:28 am

Re: Abric

Postby winston » Thu Sep 25, 2014 6:34 am

not vested

UK-listed Essentra buys Abric’s business for RM146m BY JOSEPH CHIN

KUALA LUMPUR: A FTSE 250 company Essentra plc, which makes plastics products, is buying 100% of Abric Bhd’s main operating subsidiaries for RM146mil.

Essentra said on Wednesday the purchase of the business was on a cash-free and debt-free basis.

Its CEO Colin Day said with a strong market position and an experienced management team, Abric is a compelling strategic fit for Essentra.

“Not only is its product portfolio applicable to a broad range of attractive end-markets and is highly synergistic with our manufacturing and distribution channels, Abric also significantly expands the division’s presence in the fast-growing Asia Pacific region,” Day added.

Essentra is a leading international supplier of speciality plastic, fibre, foam and packaging products. It focuses on the light manufacture and distribution of high volume, essential components which serve customers in a wide variety of end-markets and geographies.

“Completion is subject to customary closing conditions, including certain regulatory clearances and approval from Abric’s shareholders at an EGM, which are anticipated to be satisfied during the fourth quarter of 2014,” it said.

Abric is a global leading manufacturer and distributor of security sealing products and solutions for use in a diverse range of growing end-markets. These include healthcare, manufacturing, energy, retail, transportation and automotive.

With low-cost manufacturing facilities in Malaysia and Thailand, Abric’s distribution network additionally covers 88 countries, with a strong focus on Asia Pacific which accounts for 40% revenue.

For the year ended December 2013, Abric generated revenue of RM79.5mil.

“The transaction is expected to be immediately earnings enhancing, and will be reported under the company’s component & protection solutions division,” it said.

Source: The Star
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 101102
Joined: Wed May 07, 2008 9:28 am

Re: Abric

Postby winston » Thu Dec 18, 2014 8:54 am

not vested

Abric announces special dividend

PETALING JAYA: Abric Bhd has announced a tax exempt special dividend of 30 sen to shareholders.

The dividends go ex on Jan 21, 2015 while the entitlement date is Jan 23, 2015.

The dividends will be paid on Feb 6, 2015.

In September, Abric entered into a conditional sale and purchase agreement with Essentra Plc, a FTSE 250 company, for the disposal of its entire core business for RM146mil on a cash free and debt free basis.

With the completion of that deal, Abric becomes a ‘cash company’ within the ambit of Practice Note 16 of the Listing Requirements.

Abric said it was the board’s intention to maintain the company’s listing status. It added the board was taking the necessary actions to formulate a plan to regularise the ‘affected listed issuer’ condition of the company subsequent to the proposals.

Abric is a global leading manufacturer and distributor of security sealing products and solutions for use in a diverse range of growing end-markets.

Source: Th Star
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 101102
Joined: Wed May 07, 2008 9:28 am


Return to A to D

Who is online

Users browsing this forum: No registered users and 1 guest

cron