Kenanga negotiates; MMC ends sale; Magnum soars


KENANGA Investment Bank Bhd stated in an exchange filing yesterday that it will continue negotiations to acquire Inter-Pacific Securities Sdn Bhd.

Following a green light from Bank Negara Malaysia (BNM) via a letter dated May 16, 2018, Kenanga is pursuing to acquire the stockbroking business related assets, liabilities and contractual arrangements of Inter-Pacific Securities.

The acquisition is subject to, among others, all parties concluding the negotiations within six months from the date of the letter from the central bank.

The proposed acquisition will be financed with shares and cash.

In another development, MMC Corp Bhd and Melati Pertiwi Sdn Bhd have agreed to terminate a sale and purchase agreement which would have seen the former selling its entire interest in MMC Oil & Gas Engineering Sdn Bhd to the latter for RM50 million.

In January last year, MMC announced the proposed disposal for RM50 million cash.

The group told Bursa Malaysia yesterday the termination of the agreement was due to its inability to fulfil one of the conditions precedent under the agreement.

Meanwhile, Magnum Bhd’s net profit jumped 79.7% year-on-year (YoY) to RM54.9 million in its first quarter ended March 31, 2018 (1Q18), backed by higher gaming division revenue.

Magnum told Bursa Malaysia yesterday that it gained higher sales from the 4D Jackpot game due to the higher jackpot prize. Revenue grew slightly by 2.2% YoY to RM712.4 million.

“Despite the higher gaming sales in 1Q18 as a result of the seasonal Chinese New Year festive sales, gaming pretax profit was lower as a result of higher prizes’ payout ratio,” Magnum noted.

Its earnings per share rose to 3.86 sen for the period from 2.15 sen previously. Magnum declared a first interim single tier dividend of four sen per share, payable on June 29.

The group said the cut in the Goods and Services Tax and the proposed reintroduction of petrol subsidies will enhance the disposable income of its players.

The group is optimistic its financial performance for 2018 will be at least as good as that for the year before.