Felda Global Ventures Holdings Bhd (RM5.06/share)
FGV reshuffling subsidiaries into 4 clusters
FELDA Global Ventures Holdings Bhd (FGV) is reorganising the 88 subsidiaries in its stable into four clusters to make it leaner and more efficient. FGV president and chief executive officer Datuk Sabri Ahmad said the restructuring was part of the group's 40- point initiatives to be implemented 100 days after its listing two months ago. 'The creation of the clusters is part of our plan to increase efficiency. We are setting things into motion in our bid to become one of the world's top five agribusiness groups by 2020,' Sabri told Business Times recently. The clusters are plantations, downstream, sugar and Felda Holdings Bhd. The latter is FGV's associate company. ' Business Times
Kenanga Holdings Bhd (64 sen/share)
Kenanga sees 30% cost synergies from merger
After gaining approval from shareholders to proceed with the merger exercise, K&N Kenanga Holdings Bhd expects a 30% to 40% in cost synergies post-merging with ECM Libra Investment Bank Bhd. Kenanga Holdings Group managing director Chay Wai Leong told Nanyang Siang Pau the integration cost for the two entities was about RM260mil. The company would save more than RM100mil if it could be halved. 'Benchmarking against the global standard, we think the cost reduction would not reach 50%. It would be at the range of 30% to 40%,' he said in an interview published on Monday. ' Starbiz
Gunung Capital Bhd (71.5 sen/share)
Gunung Q2 net profit declines
Gunung Capital Bhd's net profit fell 11.3% to RM2.52mil in the second quarter ended June 30 from RM2.84mil a year earlier due to a rescheduling of the National Service programme by the Ministry of Defence (Mindef). Revenue was marginally lower at RM17.95mil versus RM18.25mil in the same period last year. Group operating profit, meanwhile, dropped some 20% to RM5.38mil from RM6.80mil. Earnings per share were 2.4 sen compared with 2.8 sen. It told Bursa Malaysia in a filing that the decline in earnings was because the management was unable to duplicate its success in deriving additional revenue from its buses as there was no service under the contract with Mindef. ' Starbiz