Stock Name: ALAM
Company Name: ALAM MARITIM RESOURCES BHD
Research House: AMMB
Alam Maritim Resources Bhd (June 9, RM1.64)
Reaffirm buy at RM1.64 with fair value of RM2.58: Alam Maritim made an announcement on Tuesday that another vessel from its fleet, Setia Aman, had been served with a warrant of arrest and a writ of summon by the High Court of Kuala Lumpur by MLC Barging Pte Ltd (MLCB), a company based in Singapore.
Similar to an earlier suit, MLCB is claiming: (1) a declaration that MLCB is the sole owner of the vessel; (2) a declaration that the possession of the vessel be decreed to MLCB; (3) costs; and (4) such other order or reliefs as the court deems fit and proper.
Setia Aman ' also an accommodation vessel ' was recently delivered and the arrest of this vessel will not have a material impact on the group given that no contracts have been secured, as yet.
Alam Maritim is puzzled by this claim given that the vessel has been fully paid ' via a JV with CIMB ' to MLC Sdn Bhd, a related company to MLCB, with all approvals obtained by the relevant authorities for the rightful ownership of this vessel.
Based on advice of its legal team, the group is confident that the plaintiff does not have a case against the group.
We are not concerned of this development at this juncture based on the facts given and thus maintain our estimates at this juncture.
In addition to that, as mentioned in our previous report, the management has started its investigation into this matter and findings should be known this week.
Our buy rating on Alam Maritim is reaffirmed at an unchanged fair value of RM2.58 share based on a PE (price-to-earnings) multiple of 12 times. ' AmResearch, June 9
This article appeared in The Edge Financial Daily, June 10, 2010.
Company Name: ALAM MARITIM RESOURCES BHD
Research House: AMMB
Alam Maritim Resources Bhd (June 9, RM1.64)
Reaffirm buy at RM1.64 with fair value of RM2.58: Alam Maritim made an announcement on Tuesday that another vessel from its fleet, Setia Aman, had been served with a warrant of arrest and a writ of summon by the High Court of Kuala Lumpur by MLC Barging Pte Ltd (MLCB), a company based in Singapore.
Similar to an earlier suit, MLCB is claiming: (1) a declaration that MLCB is the sole owner of the vessel; (2) a declaration that the possession of the vessel be decreed to MLCB; (3) costs; and (4) such other order or reliefs as the court deems fit and proper.
Setia Aman ' also an accommodation vessel ' was recently delivered and the arrest of this vessel will not have a material impact on the group given that no contracts have been secured, as yet.
Alam Maritim is puzzled by this claim given that the vessel has been fully paid ' via a JV with CIMB ' to MLC Sdn Bhd, a related company to MLCB, with all approvals obtained by the relevant authorities for the rightful ownership of this vessel.
Based on advice of its legal team, the group is confident that the plaintiff does not have a case against the group.
We are not concerned of this development at this juncture based on the facts given and thus maintain our estimates at this juncture.
In addition to that, as mentioned in our previous report, the management has started its investigation into this matter and findings should be known this week.
Our buy rating on Alam Maritim is reaffirmed at an unchanged fair value of RM2.58 share based on a PE (price-to-earnings) multiple of 12 times. ' AmResearch, June 9
This article appeared in The Edge Financial Daily, June 10, 2010.
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