IOI Corp brushes off acquisition rumours


This was following a news report stating that IOI Corp Bhd is in talks to buy Achi Jaya Plantations 12,074ha oil palm plantation in Labis, Johor, for RM800mil to RM900mil.

The report said Achi Jaya Plantations, formerly Achi Jaya Services, acquired Socfin Plantations Sdn Bhd's assets comprising the 12,074ha-oil palm estate, workers' quarters, staff and executive bungalows, a clubhouse, a nine-hole golf course, a 60-tonne oil mill and other facilities and amenities for RM512.16 million in January 2004.

Second interim single tier dividend of 85% or 8.5 sen per ordinary share of RM0.10 each

EX-date 05/09/2013
Entitlement date 09/09/2013
Payment date 26/09/2013

IOI Corp in RM1b takeover of Unico-Desa Plantations

IOI Corporation Bhd has launched a RM1bil takeover of Unico-Desa Plantations Bhd at RM1.17 a share.

It said on Wednesday its unit IOI Plantations Bhd had acquired 339 million Unico shares or 39.55% for a RM396.63mil cash consideration.

“Following the completion of the acquisition, IOI Plantations shareholdings in Unico has exceeded 33% of the voting shares in Unico,” IOI Corp added.

IOI Corp said IOI Plantation was obligated to extend a mandatory take-over offer to acquire all the remaining Unico shares amounting to 518.11 million Unico shares or 60.45% at RM1.17 per offer share or RM606.18mil.

IOI’s acquisition of Unico-Desa is credit negative: Moody's

Moody’s Investors Service says IOI Corp Bhd’s announced acquisition of 39.55% of Unico-Desa Plantation Bhd through its unit, IOI Plantation Sdn Bhd, and the mandatory takeover offer it will make for the remaining shares, is a credit negative.

“The cash acquisition will diminish IOI’s existing cash positions,” Moody’s said.

“The total acquisition cost, including the remaining 60.45% stake, is approximately RM1bil, plus net debt of RM15mil. IOI reported RM2.9bil of cash and cash equivalents at the end of June, although it will receive about RM1.6bil from the proposed de-merger of its property businesses later this year.”

According to the ratings agency, the cash consideration for the Unico acquisition will likely push IOI’s net debt/EBITDA ratio beyond its downward rating trigger of 1.5 times by the end of the fiscal year ending June 2014 after deconsolidating the EBITDA of its property business.

It said it had expected IOI to maintain its net debt/EBITDA ratio at around 1.0 time-1.5 times after the property spin-off and, in particular, to keep higher levels of cash on hand in the run-up to the redemption of its RM1.6bil in US dollar-denominated notes in March 2015.

IOI Corp's shareholders 'Yes' to demerger exercise

IOI Corp Bhd has received shareholders' nod for the demerger of its property arm, IOI Properties Bhd, said Group Executive Chairman, Tan Sri Lee Shin Cheng.

Lee said upon completion of the exercise, IOI Properties would be listed on Kuala Lumpur Stock Exchange in January next year.

"We are now at the final stage and we have received approvals from the Securities Commission and Bursa Malaysia for the listing," he told reporters after the extraordinary general meeting here today.

He said after the de-merger exercise, IOI Corp would receive a revenue of about RM1.9 billion.

"IOI Corp would use part of the money to redeem the bond worth US$500 million and the balance would be for working capital," he said.

Lee said the IOI Properties currently contributed about 30-40 per cent in revenue to IOI Corp.

S&P: IOI Corp purchase of Unico-Desa marginally negative for financial risk profile

Standard & Poor's Ratings Services says IOI Corp. Bhd’s purchase of Unico-Desa Plantations Bhd is likely to be marginally negative for IOI's financial risk profile.

It said on Friday the company's ratio of adjusted debt to EBITDA would exceed 2.5 times for about a year at least following the acquisition.

“This compares with our downgrade trigger of more than 2.75 times on a sustained basis. We expect the ratio to improve over a longer term as IOI will likely generate positive free operating cash flows and repay debt using internal cash accruals,” it said.

S&P said in arriving at IOI's adjusted debt, it had set aside RM3.0bil cash, which the company needs for its operations, from IOI's expected cash balance. It set off the rest of the cash against the company's debt.

To recap, IOI has acquired a 39.55% stake in Unico-Desa for RM396.63mil. IOI's mandatory general offer for the remaining stake would entail a payout of about RM600mil. IOI plans to use internal cash accruals to fund the expenditure.

S&P said IOI Corp's proposed acquisition of palm oil producer Unico-Desa Plantations does not affect the ratings and outlook on IOI (BBB/Stable/--; axA/--) and the notes it guarantees.

The ratings agency said it does not expect Unico-Desa to contribute significantly to IOI's cash flows over the next one to two years.

It added Unico-Desa's operating parameters, such as production of fresh fruit bunches per hectare and oil extraction rates, were comparable with industry benchmarks.

“We do not anticipate that IOI will meaningfully improve them over the next one to two years. Unico-Desa will marginally augment IOI's planted area and in-house crude palm oil supply. The acquisition is likely to be marginally negative for IOI's financial risk profile,” it said.

S&P also said it expected IOI to receive about RM2bil as part of a proposed demerger of its property business.

“We understand that the proposed reorganisation is progressing as we expected and is likely to be completed over the next two to three months,” it said.

what u talking?

I don't know why the girls each holding an apple but the pict I took from internet, juz love the style & dress

IOI Plantations gets 76.6% of Unico-Desa shares

IOI Corporation Bhd’s unit IOI Plantations Bhd now has 76.64% stake in Unico-Desa Plantations Bhd and the takeover offer has now become unconditional.

IOI Corp said on Monday IOI Plantation had received valid acceptances for 310.93 million offer shares or 36.28% and raised its entire stake to 76.64% or 656.86 million shares. The takeover offer was RM1.17 per share.

It said as IOI Plantation held more than 50% of the voting shares of Unico, the offer had become unconditional.

It added with the latest development, Unico did not comply with the public shareholding spread requirement, where at least 25% of its total listed shares would have to be in the hands of public shareholders.

However, it did not intend to undertake any steps to address the shortfall in the public shareholding spread requirement of Unico-Desa.

IOI Corporation Berhad ("IOI Corp" or the "Company")
Incorporation of Indirect Subsidiary

http://www.bursamalaysia.com/market/listed...cements/1462493