<article>The major shareholders of Malaysian logistics group <a style="color: #0000ff;" href="http://www.century.com.my/" target="_blank">Century Logistics Holdings Bhd </a>are prepared to sell their collective 44 per cent equity interest in the company.</article>

The major shareholders of Malaysian logistics group <a style="color: #0000ff;" href="http://www.century.com.my/" target="_blank">Century Logistics Holdings Bhd </a>are prepared to sell their collective 44 per cent equity interest in the company.
Local media <a href="http://www.theedgemarkets.com" target="_blank">The Edge Financial Daily</a> reported that, quoting sources, the shareholders are willing to dispose of their stakes at MYR3 ro MYR3.20 per share, which is the company’s share price before a recent bonus issue and share split in October.
Factoring in the bonus issue and share split, the selling price would be MYR1 to MYR1.06 per share, which is a 53 per cent to 62 per cent premium to the counter’s closing price at 65.5 sen today.
The major shareholders of the company are family, with the executive chairman Richard Phua Sin Mo being the largest shareholder holding 26.67 per cent of Century Logistics.
As at October 21 last year, Phua held a 19.18 per cent direct stake and a 7.49 per cent indirect stake through this wife Lee Lay Hun and daughter Pamela Phua Jo Lyn.
A further breakdown of the major shareholders’ collective interest showed that Phua’s nephews Steven Teow Choo Hing and Teow Choo Chuan, who are the managing director and group executive director, own 11.53 per cent and 6.03 per cent stakes.
Sources told the local daily that the group had been approached by foreign logistics providers to buy a stake in the company but no deal materialise due to valuation issues.
In March, it was reported that<a href="http://www.feldaglobal.com/" target="_blank">) </a><a style="color: #0000ff;" href="http://www.feldaglobal.com/" target="_blank">Felda Global Ventures Holdings Bhd (FGV</a>), Malaysia’s largest plantation company, was exploring options to unlock value in it logistics arm. It was planning to inject its logistics unit into another company in the industry, in return for some shareholding. Century Logistics was one of the considered parties to further integrate FGV’s palm oil and rubber supply chain.
To that end, the logistics company said it was also open to exploring collaborations with FGV at that point. However, in September, Century Logistics confirmed that it was no longer expecting a planned collaboration with the plantation conglomerate.
The talks were called off by the FGV board of directors, according to The Edge Financial Daily, although it was believed that FGV had earlier made an offer of MYR2.95 per share. The stock was trading at MYR2.65 in March.
According to information from sources, the major shareholders are still keen on divestment, “but they are consolidating the group’s overseas operations and shifting its focus to domestic market to drive its value”.
Phua’s shareholding of 97.63 million shares is worth MYR63.95 million ($18.08 million) at today’s 65.5 sen closing price. The closing price was 4.8 per cent higher on a trading volume of 1.39 million shares.
Century Logistics’ share price has been on the tumble since June, when the talks with FGV was called off. It fell sharply from 82 sen on June 30, 2014 to 69.7 sen the next day. While the share price stabilised above 80 sen for a few months, it has conspicuously moved downwards since October 1.
Century Logistics’ net asset per share is MYR2.13 as at September 30, 2014. And its cash reserves was MYR62.84 million ($17.66 million) in the same period.
It disposed of its loss-making oil transportation operation last year as well as a disposal of its distribution centre in Rojana Industrial Park in Thailand for 320 million baht with an expected net gain on disposal of MYR2 million ($570,000).
The company has been on track in its target of 10 per cent revenue growth per year for the financial year ended December 31, 2014. The group is pushing for higher yields through contract logistics growth, more warehousing capacity and oil and gas logistics allocation.
It is also seeking expansion for its procurement logistics division, to more regions like Africa, Indonesia, Kazakhstan and Uzbekistan.

Century Logistics major shareholders to sell out

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