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CSC Steel hits high of RM1.45 after firmer earnings
Trading in I-Bhd halted after MoU inked for RM580m mall
Verizon Wireless to pay surprise US$7bil dividend

CSC Steel hits high of RM1.45 after firmer earnings

Posted: 13 May 2013 07:05 PM PDT

Published: Tuesday May 14, 2013 MYT 10:05:00 AM

KUALA LUMPUR: Shares of CSC Steel Bhd rose as much as 9% to a high of RM1.45 on Tuesday after its earnings in the first quarter ended March 31, 2013 exceeded analysts' forecast.

At 9.51am, CSC was up 10 sen to RM1.43. There were 792,300 shares traded at prices ranging from RM1.42 to RM1.45.

The FBM KLCI rose 3.85 points to 1,791.75. Turnover was 507.19 million shares valued at RM353.13mil. There were 374 gainers, 188 losers and 213 counters unchanged.

CSC's net profit jumped more than two-fold to RM17.5mil in the first quarter ended March 31, from RM5.5mil a year ago due to a significant increase in sales volume while lower raw material and lower unit production costs also helped boost profit.

RHB Research said CSC Steel net earnings of RM17.5m were above its and street estimates on higher sales and improved profit margin.

"The Indonesian authority's anti-dumping duty against East Asian steel mills spurred the group's sales while the increase in steel prices further boosted its profitability.

"We revise up our earnings forecast and derive a new RM1.72 FV. Maintain Trading Buy," it said.

Trading in I-Bhd halted after MoU inked for RM580m mall

Posted: 13 May 2013 06:38 PM PDT

Published: Tuesday May 14, 2013 MYT 9:39:00 AM

KUALA LUMPUR: Trading in I-Bhd was voluntarily halted for an hour from 9am on Tuesday following its announcement about its MoU with a Thai company to build a RM580mil mall in I-City, Shah Alam.

A Bursa Securities circular said trading its company's securities would resume at 10am.

On Monday, both companies had teamed up to build a 1.5 million sq ft mall in I-Bhd's flagship development i-City with a gross development value of RM580mil.

I-Bhd would have a 40% stake via i-City Properties Sdn Bhd (ICP) in the joint venture while CPN would have the remainder stake via two locally incorporated companies CPN Real Estate Sdn Bhd and CPN Malls Malaysia Sdn Bhd. Work starts next year and to be completed by end-2016.

Verizon Wireless to pay surprise US$7bil dividend

Posted: 13 May 2013 06:37 PM PDT

NEW YORK: Verizon Wireless, the biggest U.S. mobile service provider, said on Monday it would pay its parents Verizon Communications and Vodafone Group Plc a dividend of $7 billion in June, surprising some analysts who had not expected a big payout.

The dividend comes amid mounting speculation Verizon could buy Vodafone's stake in the venture if they can agree on a price. Reuters reported on April 24 that Verizon was preparing a $100 billion bid for the stake but investors have said they expect Vodafone to seek a higher price.

The dividend decision follows recent comments from Verizon Chief Executive Lowell McAdam to JP Morgan analysts that he did not want to pay a premium for the stake and that the two owners could face a "lean" year in terms of the Verizon Wireless dividend.

"I wouldn't call that lean," said Evercore analyst Jonathan Schildkraut referring to the $7 billion dividend, which is payable on June 25.

Verizon, which controls the wireless venture and dividend decisions, declined to comment on the Verizon Wireless statement on Monday. Vodafone had no immediate comment.

Schildkraut said he was surprised by the decision as he read McAdam's previous comments as a sign that the executive wanted to put pressure on Vodafone to agree to a deal. Schildkraut said he does not think Verizon has an urgent need for cash.

"Despite more contentious commentary from Verizon management it's just does not appear that withholding Verizon Wireless cash flow from Vodafone is likely to be part of the negotiation," Schildkraut said.

The Verizon Wireless board decided on the dividend on May 9, according a filing the company made with regulators.

The wireless venture's last dividend to its parents was a $8.5 billion payout in the fourth quarter of 2012, which followed with a $10 billion pay-out made in January of 2012.

Verizon had refused to sanction a dividend from the Wireless asset between 2005 and 2011 because it said it preferred to pay down debt and make acquisitions. At the time that was seen by analysts as a move to pressure Vodafone out of the venture.

Based on Verizon's 55 percent ownership of the venture and Vodafone's 45 percent stake, the June pay-out will bring Verizon cash payments of $3.85 billion while Vodafone will receive $3.15 billion, according to the company.

Verizon shares rose slightly in late trade to $53 after closing at $52.55 on the New York Stock Exchange. - Reuters

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Isnin, 13 Mei 2013