C.I. Hldgs searches for new core business

Interesting article. Im also excited for CIH new venture. Well, some analyst speculates that they might venture into snack/biscuit manufacturer, property and automotive distributor company, well out of all option, i strongly support if they want to venture into snack/biscuit manufacturers.

Since the MD has vast experience in F&B industry, it would be definitely be an advantage to the group, rather than venturing into uncharted territory for the group like automotive company. The margin is good plus since they have good and established relationship with Pepsi Co through Permanis, im sure it wont be an issue for them to bring in other Pepsi Co products like Frito Lays' etc.

================================================================================

###############################################################################

C.I. Holdings Bhd is exploring investment opportunities across various sectors, including potential investments in fast moving consumer goods (FMCG), its area of expertise.

Managing Director Datuk Johari Abdul Ghani told Bernama today that the company is focused on acquiring a controlling stake for a new core business for C.I.

C.I. has been in search of investment opportunities since it inked a proposed deal to sell off its wholly-owned subsidiary, Permanis Sdn Bhd, which provided a strong core business since the company was established.

Permanis contributed over 90 per cent to C.I.’s profit and revenue. On July 21, C.I. signed an agreement with Japan's Asahi Group Holdings Ltd, to sell Permanis for RM820 million cash.

"Since our announcement, we have received many proposals and continue evaluating them. The proposals received so far have spanned a broad range of industries including FMCG.

"At this point of time, we are not ruling out anything and will consider any new proposal received.

"However, we are focused on proposals where we can take a controlling interest. Hence, we also feel that it is important to take our time and consider each proposal carefully," Johari said.

He said C.I. is still deliberating and has yet to determine the utilisation of proceeds from the disposal of Permanis.

"We are mindful that the allocation of the proceeds must take into consideration the interest of the company and its shareholders," he added.

He is the single largest shareholder of CI with a 30 per cent stake.

Syed Khalil Syed Ibrahim and his mother, Datin Mariam Prudence Yusuf, collectively hold a 20 per cent equity interest in the company.

Johari said the company is in the midst of preparing a circular to obtain approval from shareholders for the disposal of Permanis.

"We expect to be in a position to issue the circular to shareholders in October and the extraordinary general meeting will take place 21 days thereafter," he added.

He said the company will release the results of its financial performance for the fourth quarter and full year on Aug 25.

For the financial year ended June 30, 2010, the company turned in a net profit of RM38.17 million on revenue of RM516.4 million.

C.I.posted a net profit of RM11.37 million on revenue of RM140.42 million for the fourth quarter of its financial year 2010. -– Bernama