KUALA LUMPUR (July 11): Based on corporate announcements and news flow today, companies that will be in focus on Wednesday (July 12) may include: Lotte Chemical, ML Global, Boustead Heavy Industries, UPA Corp, T7 Global, DiGi, Sealink, and Kobay Technology.
Lotte Chemical Titan Holding Bhd (LCT), which returned to the Main Market of Bursa Malaysia today, is betting on South East Asia (SEA) as a "strong demand growth area" for its products for the next three years.
"There is a strong growth demand here in Malaysia and Indonesia. We believe the market can absorb [the supply] of polyofelin products, and independent market researchers share a similar view," said vice president (corporate planning) Philip Kong at the listing ceremony.
With raised proceeds being short of RM4 billion — being lower than the initially-planned RM5.9 billion — LCT has cut down allocation to fund its RM15 billion Indonesian integrated petrochemical facility from RM4.9 billion to RM2.8 billion.
LCT's counter opened flat at RM6.50. The stock settled 12 sen lower at RM6.38 after trading between RM6.33 and RM6.53. It saw 45.48 million shares traded, making it the second most actively traded stock in the market.
In a Bursa Malaysia filing, Maybank Investment Bank Bhd said it has bought 17.1 million shares in LCT to stabilise the latter's share price. It bought the shares at RM6.4718 apiece, for RM110.67 million in all.
ML Global Bhd has bagged a RM68.14 million subcontract from Samling Ekovest JV Sdn Bhd to undertake piling works in the Bau-Lundu stretch and the KSR Section in Sarawak under the Pan Borneo Highway project.
The job was bagged by its indirect 70%-owned subsidiary MGB Geotech Sdn Bhd. The construction period is for 20 months, with completion by Oct 31, 2018.
The Defence Ministry is claiming nearly RM148 million in damages from Boustead Heavy Industries Corporation Bhd (BHIC) over the breach of an obligation under the in-service support for the Royal Malaysian Navy Scorpene submarines contract.
The contract was awarded to BHIC's unit Boustead DCNS Naval Corporation Sdn Bhd (BDNC) in August 2010.
BHIC said BDNC received the letter from the ministry claiming RM53.2 million and a further €19.3 million (RM94.52 million) in damages. Boustead said BDNC is currently responding to the letter of claim from the ministry.
Paper and printing machine seller UPA Corp Bhd said the government, via the Federal Territory Lands and Mines Office, has notified the firm that it would be awarded RM32.67 million for the compulsory acquisition of three plots of land it owns.
The compulsory acquisition will pave way for the government to construct the second mass rapid transit line, which will be traversing from Sungai Buloh to Putrajaya via Serdang.
T7 Global Bhd, formerly known as Tanjung Offshore Bhd, is optimistic about continuing to post positive results for the remaining quarters of financial year ending Dec 31, 2017 (FY17).
Its executive chairman Datuk Seri Dr Nik Norzrul Thani said this will be supported by a number of projects secured previously, which will keep the group busy for several years.
The group's current orderbook now stands at RM500 million, while its tenderbook is valued at over RM1 billion. Nik Norzrul said it is currently bidding for several more projects worth billions.
DiGi.Com Bhd, Malaysia's third largest mobile operator, has redesignated its current non-executive director, who was also its former chief executive officer, Lars-Ake Valdemar Norling as the new chairman.
Norling replaces Morten Karlsen Sorby, who resigned from the current post, following organisational changes in Telenor ASA, which owns a 49% stake in DiGi and the telco firm's largest shareholder.
Norling, 48, was CEO of DiGi and Digi Telecommunications Sdn Bhd between Aug 1, 2014 and April 1, 2015. Currently, he heads Thailand-based Total Access Communications PLC, in which Telenor is also the largest shareholder with a 42.62% stake.
Shipping group Sealink International Bhd has bagged a charter contract for one of its safety standby vessels and is selling two ageing vessels for RM52 million in total.
Sealink said the disposal of the vessels is part of the group's strategy to continually modernise and upgrade its fleet of vessels.
It plans to use the sale proceeds for working capital.
Kobay Technology Bhd said a RM2.86 million suit has been filed against its wholly-owned unit over a dispute concerning the completion of residual work under a purchase order.
Kobay said the suit against its unit Bend Weld Engineering Sdn Bhd (BWE) was filed by NGL Tech Sdn Bhd yesterday.
In response, BWE today counter-sued NGL for a declaration that it is entitled to payment from NGL for work done, and that NGL is not entitled to back-charge BWE for work that NGL took over from BWE.
BWE is claiming RM1.39 million for work that it has completed.