Thursday, December 1, 2011

About Mercury

Mercury is one of the top two car paint manufacturers in Malaysia by market share, is exploring opportunities to diversify and expand its existing business.

It is looking at up to four business proposals from other players in the local industry for a potential diversification, possibly via acquisitions.

It is in net cash position. It had rm6.46 million as at June 2011 comprising rm1.67 million cash and rm4.78 million short term deposits and virtually no borrowings. 


Datuk Tiong Kwing Hee is the largest shareholder now with 4.41 million shares or 10.06% equity. Thang Joo Chiet has a 7.56% stake while Liau has a 5.22% stake.

Tiong is also sits on the board of EcoFirst and a substantial shareholder of Meda Inc with 5.78% stake.

While Mercury is busy looking for businesses to acquire, industry sources say the company itself is the potential acquisition target of some of the world’s top paint manufacturers.

AkzoNobel nv is the world largest coatings manufacturer by sales, followed by PPG Industries Inc and DuPont Coastings & Color Technologies Group. One of the top three paint makers in the world is keen on buying the company’s entire assets and retain its management team.

The company has registered continuous annual growth from 2006 to 2010. Its net assets per share stood at RM1.15.

Its shares are tightly held by its major shareholders. The top 30 largest shareholders collectively hold 75%.

It should be noted that the coatings and paint manufacturing business is susceptible to volatile crude oil prices because of its raw materials are petroleum based.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.