It is learnt that UEM Group has received several propositions to divest its IT arm. Sources say among the interested parties are private firm Halal Capital Sdn Bhd and a company led by a member of the Kelantan royal family.
A source says Halal Capital has submitted a formal proposal to acquire Time Engineering, but details of the proposals are unknown. The status of the other bid is not known.
Halal Capital’s nature of business is Islamic Investment and general trading. The company’s largest shareholder and director is Siti Fatimah, who is said to have links with former top officials of Nascom.
It is not clear how much of its 45.03% equity interst UWM wants to dispose of, but a sale of more than 3.3% could trigger a MGO if a waiver is not obtained.
Time Engineering’s net assets per share stood at 42 sen as at end Dec 2010. It has cash and cash equivalents of rm102 million and debts of some rm264 million in the form of loan stocks as at end FY2010 ended Dec 31.
Its main assets is its 24.74% stake in TimeDotCom.
Time Engineering is seeking shareholders’ approval at an EGM on June 6 2011 to sell its entire stake in TDC at not less than 48 sen per share on a renounceable offer for sale on the basis of right offer shares for every 10 Time Engineering.
Sources say the sale of the TDC shares to Time Engineering shareholders could be at about 48 sen.
Assuming as sale of 48 sen per share, Time Engineering’s stake in TDC could fetch about rm300 million. The proceeds raised would be used to redeem its RSLS and for working capital. This would leave Time Engineering debt free and with excess cash of bout rm100 million.
Additionally Time Engineering has a 71% stake in Dagang Net technologies Sdn Bhd, which ahs been appointed the service provider to develop Malaysia’s national Single Window trade facilitation system by the finance ministry. Sources say the remaining 29% is owned by Bank Islam, LTH, Datuk Syed Hussein And Juara Holdings.
Previously, Time Engineering had received a rm100 million offer for its stake in Dagang Net, but it turned it down as the bid was too low.
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