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Friday, March 8, 2013

Dijaya to up stake in energy company


PETALING JAYA: Dijaya Corp Bhd’s (DCB) unit, Dijaya Tenaga Kimia Sdn Bhd, will increase its stake in energy chemical company Tenaga Kimia Sdn Bhd (TKSB) to 73% from 33% presently.
TKSB is involved in the manufacturing and sale of explosives, chemicals and blasting accessories with its presence in Sarawak, Thailand, Taiwan and Indonesia.
The National Aerospace and Defence Industries Sdn Bhd will sell its 40% stake to DGB by way of a sale of shares agreement for RM79.36mil.
DCB said in its exchange note that these would be satisfied by way of a RM39.63mil cash payment and the balance by real properties currently held as inventories of the company.
The cash payment portion will be provided via internally-generated funds and or bank borrowings with the exact mix will be determined at a later time.
DCB said that the acquisition, which does not need the approval of its shareholders, was expected to generate additional recurring future dividend income for the company.
“Historically, the net dividend declared by TKSB has been increasing over the financial year ending Dec 31, 2009 (FY09) to FY11 with an average net dividend of approximately 35 sen per share,” the company said.
DCG said TKSB’s shares were acquired on an FY11 price to earnings ratio of 11.27 times and it noted this was below the regional industry average.
The company added that based on TKSB’s unaudited FY12’s price to earnings ratio the share portion was acquired at 9.25 times.
“Dijaya is bullish on blasting systems provider TKSB as a conduit to the construction and quarrying industry. This proposed share acquisition shall unlock the value of the group’s inventories, and thus further enhance our net assets and earnings,” Datuk Dickson Tan, group managing director of DCB said in a statement.

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