VERY HIGH VOLUME TURNOVER. aNYTHING SPECIAL COMING?

At what price? At 29.5c?

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KUALA LUMPUR: The emergence of a new major shareholder in Green Ocean Corp Bhd over the past month has stirred rumours of a hostile takeover, but managing director Mckin Lee remains confident that he has enough support to maintain control of the ACE Market-listed outfit, which operates in the downstream segment of the palm oil industry.
“I don’t think there will be a hostile takeover. We have very strong support from our shareholders, with friendly parties controlling almost 50% of the company and we have no intention of taking the company private,” said Lee, who holds an indirect 14% stake in Green Ocean through South Korea-based Heshbon Co Ltd.
Heshbon and the remaining top 30 shareholders, comprising directors and individual investors including timber tycoon Tan Sri Tiong Hew King (with 0.54%), hold 47.8% of the company as at July 31, 2012, according to Green Ocean’s 2012 annual report.
Last November, Ng Chiew Eng, who is a private investor, emerged as a substantial shareholder in Green Ocean with a 6.13% stake, shortly after the company bagged a potentially lucrative contract with Sime Darby Bhd which could see the group pushing palm oil products into the relatively untapped South Korean market.
Ng has continued to buy more shares and based on a latest filing with Bursa Malaysia, as at Jan 16 he now controls 25.52% of Green Ocean, making him the single largest shareholder. In the past one year, Green Ocean’s share price has more than tripled to close at 32.5 sen last Friday, giving it a market capitalisation of RM60.6 million.
Lee said the two major shareholders — Heshbon and Ng — do not have any past association, although he has met Ng since the latter emerged as a major shareholder. From the meetings, Lee said Ng’s intentions were unclear.
But a close associate of Ng dismissed rumours that he would attempt to take over Green Ocean, describing Ng’s holdings as “friendly”.
“Ng is investing in Green Ocean in his personal capacity for the long term because he is confident in its prospects. He doesn’t intend to interfere in the management at this point in time, but is seeking representation on the board,” said the associate, adding that Ng was comfortable with his holdings.
Ng’s interest in Green Ocean could stem from its exclusive right to “NoveLin”, an edible palm oil derivative that is able to withstand cold temperatures.
“Right now, palm oil is unable to penetrate markets which have four seasons because it solidifies at around 20˚Celsius. But NoveLin is able to withstand cold temperatures giving us access to markets like South Korea, China and Europe (during winter) which were previously closed to palm oil products,” said Lee.
Green Ocean had four years ago acquired a 20-year exclusive rights for NoveLin from the Malaysian Palm Oil Board (MPOB), which developed and holds the patent for it. Since then, the company, which also specialises in information and communications technology, has found ways to commercialise the production of NoveLin.
“In the past two years, we have been working closely with Sime Darby to develop this product. Today, we have proof of concept to mass produce NoveLin,” said Lee.
Sime Darby currently purchases all of Green Ocean’s NoveLin production of 5,000 tonnes per annum for research and marketing purposes. But its bigger plan is to introduce and distribute the NoveLin-derived cooking oil in South Korea.
“We have formed a strategic partnership with Sime Darby to leverage on their extensive B2C (business-to-consumer) reach. Our role will simply be as a contract manufacturer [of NoveLin],” said Lee.
Sime Darby has already formed a partnership with South Korean food conglomerate CJ CheilJedang to distribute the palm-based cooking oil in South Korea.
Lee, who is a Korean national, said Green Ocean will be ramping up production capacity by 10 times this year to 50,000 tonnes per annum. The expansion is expected to cost about RM70 million, he added.
If NoveLin is successful in South Korea, Lee will look into marketing the product in China and eventually Europe where palm-based cooking oil is only sold seasonally at the moment.
The second phase of expansion could see the group expand its production capacity to 150,000 tonnes per annum in the next three to four years which will require capital expenditure of RM200 million.
How the group will fund this expansion has not yet been decided but it is opened to all options, said Lee.
NoveLin will be marketed as a premium oil, with an indicative price of around US$12 per litre which is more expensive than soybean oil, he said.
“At US$12 per litre, one tonne will cost about US$12,000. It takes about two tonnes of crude palm oil (CPO) to produce one tonne of NoveLin and each tonne of CPO costs about US$1,000. Therefore, accounting for other costs, we’re easily looking at margins of around 500%,” said Lee.
As a contract manufacturer, Green Ocean will only be taking a fixed cut of the profits, sharing margins with Sime Darby and CJ

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No takeover, says Green Ocean MD
By Ben Shane Lim of theedgemalaysia.com | The Edge Malaysia – 14 hours ago
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KUALA LUMPUR: The emergence of a new major shareholder in Green Ocean Corp Bhd over the past month has stirred rumours of a hostile takeover, but managing director Mckin Lee remains confident that he has enough support to maintain control of the ACE Market-listed outfit, which operates in the downstream segment of the palm oil industry.
“I don’t think there will be a hostile takeover. We have very strong support from our shareholders, with friendly parties controlling almost 50% of the company and we have no intention of taking the company private,” said Lee, who holds an indirect 14% stake in Green Ocean through South Korea-based Heshbon Co Ltd.
Heshbon and the remaining top 30 shareholders, comprising directors and individual investors including timber tycoon Tan Sri Tiong Hew King (with 0.54%), hold 47.8% of the company as at July 31, 2012, according to Green Ocean’s 2012 annual report.
Last November, Ng Chiew Eng, who is a private investor, emerged as a substantial shareholder in Green Ocean with a 6.13% stake, shortly after the company bagged a potentially lucrative contract with Sime Darby Bhd which could see the group pushing palm oil products into the relatively untapped South Korean market.
Ng has continued to buy more shares and based on a latest filing with Bursa Malaysia, as at Jan 16 he now controls 25.52% of Green Ocean, making him the single largest shareholder. In the past one year, Green Ocean’s share price has more than tripled to close at 32.5 sen last Friday, giving it a market capitalisation of RM60.6 million.
Lee said the two major shareholders — Heshbon and Ng — do not have any past association, although he has met Ng since the latter emerged as a major shareholder. From the meetings, Lee said Ng’s intentions were unclear.
But a close associate of Ng dismissed rumours that he would attempt to take over Green Ocean, describing Ng’s holdings as “friendly”.
“Ng is investing in Green Ocean in his personal capacity for the long term because he is confident in its prospects. He doesn’t intend to interfere in the management at this point in time, but is seeking representation on the board,” said the associate, adding that Ng was comfortable with his holdings.
Ng’s interest in Green Ocean could stem from its exclusive right to “NoveLin”, an edible palm oil derivative that is able to withstand cold temperatures.
“Right now, palm oil is unable to penetrate markets which have four seasons because it solidifies at around 20˚Celsius. But NoveLin is able to withstand cold temperatures giving us access to markets like South Korea, China and Europe (during winter) which were previously closed to palm oil products,” said Lee.
Green Ocean had four years ago acquired a 20-year exclusive rights for NoveLin from the Malaysian Palm Oil Board (MPOB), which developed and holds the patent for it. Since then, the company, which also specialises in information and communications technology, has found ways to commercialise the production of NoveLin.
“In the past two years, we have been working closely with Sime Darby to develop this product. Today, we have proof of concept to mass produce NoveLin,” said Lee.
Sime Darby currently purchases all of Green Ocean’s NoveLin production of 5,000 tonnes per annum for research and marketing purposes. But its bigger plan is to introduce and distribute the NoveLin-derived cooking oil in South Korea.
“We have formed a strategic partnership with Sime Darby to leverage on their extensive B2C (business-to-consumer) reach. Our role will simply be as a contract manufacturer [of NoveLin],” said Lee.
Sime Darby has already formed a partnership with South Korean food conglomerate CJ CheilJedang to distribute the palm-based cooking oil in South Korea.
Lee, who is a Korean national, said Green Ocean will be ramping up production capacity by 10 times this year to 50,000 tonnes per annum. The expansion is expected to cost about RM70 million, he added.
If NoveLin is successful in South Korea, Lee will look into marketing the product in China and eventually Europe where palm-based cooking oil is only sold seasonally at the moment.
The second phase of expansion could see the group expand its production capacity to 150,000 tonnes per annum in the next three to four years which will require capital expenditure of RM200 million.
How the group will fund this expansion has not yet been decided but it is opened to all options, said Lee.
NoveLin will be marketed as a premium oil, with an indicative price of

Angpow is coming soon?

What 60c? Any news?

Buy this week and watch next two week's development. Then ?

I think someone trying to delay the price from going up n frightening us to sell cheap. Do u think the seller n the buyer same gang?

What rat?

So now who can afford to invest more can start fr today, yes Bullish?

Don't sell at 34.5

We buy tomorrow, ok?

A little play up in the making?..watch carefully lo

New major shareholder raises stake at Green Ocean

Wed, 12 Dec 2012 00:17:16 GMT

KUALA LUMPUR: In slightly over a month, Ng Chiew Eng, a substantial shareholder of Green Ocean Corp Bhd, has gained the largest stake in the group with 20.57% as at Dec 5.

The group’s next largest shareholder is Hesbon Co Ltd with a 14.05% stake as at July 31, according to the group’s 2012 annual report.

Ng emerged as a substantial shareholder of the group when he bought 11.43 million shares on the open market, or a 6.13% stake, on Nov 2. Since then, he has been aggressively buying shares on the open market.

He bought 14,437,200 shares from Nov 5 to Nov 8, doubling his shareholding to 13.88%.

In an announcement to Bursa Malaysia yesterday, Ng disclosed another acquisition of 56,000 shares on Dec 5, bringing the total to 38.35 million shares or 20.57% equity interest.

Green Ocean’s share price has been relatively robust, more than doubling in the past six months. The counter closed at 35.5 sen yesterday, up 102.86% from six months ago.

Trading volumes have also picked up. An average of 6.08 million Green Ocean shares have been traded daily in the past three months, compared with only 1.23 million shares in the prior three months.

The group on Nov 30 announced its second consecutive quarter of profit. For the quarter ended Sept 30, it posted a profit of RM690,000, a turnaround from a net loss of RM271,000 a year ago.

The profit was due to the reversal of an impairment loss on plant and equipment amounting to RM1.3 million in the quarter.  Prior to the two profit-making quarters, the group had incurred eight straight quarters of losses.

Green Ocean recently entered into an agreement to supply refined bleached and deodorised palm oil to SIME DARBY BHD []. The contract period to supply the premium cooking oil under the NoveLin brand is two years plus one year.

NoveLin’s edible oil, patented and developed by the Malaysian Palm Oil Board,  is a new and improved palm-based olein with unique composition and cold stability. It is a specially formulated to suit and meet the general market demand and nutritional recommendations of the World Health Organisation and the American Heart Association.

 

This article first appeared in The Edge Financial Daily, on Dec 12, 2012.