Time dotCom shares slump on lower offer price

KUALA LUMPUR: Shares of TIME DOTCOM BHD [] slumped in afternoon trade on Tuesday, June 21 after its major shareholder fixed the offer for sale of the shares at a sharp discount.

At 2.42pm, Time dotCom was down 9.5 sen to 69.5 sen with 27.78 million shares done while TIME ENGINEERING BHD [] lost 1.5 sen to 46.5 sen.

The FBM KLCI rose 0.44 of a point to 1,559.63. Turnover was 545.18 million shares done valyed at RM667.41 million. There were 180 gainers, 466 losers and 281 stocks unchanged.

Time fixed the renounceable offer for sale of up 626.18 million shares of Time dotCom at 53 sen.

The offer price of 53 sen was 33.75% below the five-day volume weighted average market price up to June 17.

The offer for sale is on the basis of eight offer shares for every 10 shares held in Time Engineering held as at 5pm on July 5.

Time dotCom's net asset per share was 55 sen as at March 31, 2011. It reported net profit of RM22.88 million on the back of RM70.60 million in revenue in the first quarter ended March 31, 2011.

HLIB maintains Buy on Time dotCom, keeps TP unch 95c

KUALA LUMPUR: Hong Leong Investment Research (HLIB) is maintaining its Buy call on Time dotCom at 95 sen.

It said on Wednesday, March 16, that due diligence has been completed on the proposed acquisitions of GTL, GTC and AIMS.

It said the independent valuations performed by Pricewaterhouse Coopers Capital (PwC) on the acquiree companies resulted in a total acquisition value of between RM284m and RM347m.

'This was based on the income approach method and cross-checked with the market approach,' it said.

HLIB Research said Time dotCom and the transacting parties involved have reached a mutual agreement on the purchase consideration, which now amounts to RM322m ('RM17m or a -5% discount from RM339m previously).

This would be satisfied by RM88m in cash (previously RM90.9m) and RM234.0m in shares (previously RM248.1m). TDC is required to submit the draft circular on the acquisitions no later than 31 March 2011.

'We leave our forecasts and target price unchanged and maintain our Buy call on the stock pending the outcome of the proposed acquisitions,' it said.