Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 16): Based on corporate announcements and news flow today, companies that may be in focus on Tuesday (Jan 17) could include: AirAsia X, FGV, Maybank, Tex Cycle,  HIL Industries and Mudajaya Group.

AirAsia X Bhd says it will focus on China expansion with special one-way all-in-fares from RM199 for its four-times-a-week direct flights from Kuala Lumpur to Wuhan. Wuhan is the capital city of Hubei province in Central China.

The group said China will remain as a crucial market for the budget airline, due to the geographical segment's positive growth.

“China is a segment that continues to record encouraging progressive performance every year and will remain the focus in AirAsia X’s network expansion strategy.

"We are committed to maintaining the positive growth in this core market, as well as developing innovative products and services to meet the discerning needs of our guests," AirAsia X CEO Benyamin Ismail said in a statement.

"Together with our short-haul affiliate AirAsia (Bhd), we are the largest foreign carriers into China, and Wuhan will soon be a virtual hub for the AirAsia and AirAsia X groups, as it is set to receive 32 weekly flights coming from Kuala Lumpur, Kota Kinabalu, Bangkok and Phuket,” he said.

Felda Global Ventures Holdings (FGV) Bhd has clarified that there has been no discussion on the matter of privatisation of the plantation behemoth.

In a bourse filing, FGV said it has not received any proposal from the other shareholders on the purported privatisation.

“As far as the company is aware, after due enquiry with Federal Land Development Authority (Felda) as the major shareholder, there was no discussion on this matter at its board level,” it said.

Meanwhile, Felda is said to be working on disposing part of its stake in Malayan Banking Bhd (Maybank) at RM8 to RM8.05 apiece in a move to raise up to US$63.1 million (RM281.8 million), according to Dow Jones, which quoted a term sheet sighted.

Based on Maybank's financial year ended Dec 31, 2015 annual report, Felda was listed as the fifth largest shareholder with a 1.9% stake in the banking group as at Feb 10 last year.

Maybank shares closed 27 sen or 3.25% lower at RM8.05 today, valuing the group at RM83.58 billion, the largest market capitalisation for a banking group in Malaysia.

Maybank was the fourth largest decliner across Bursa Malaysia today.

Felda has been under heavy scrutiny of late due to its intention to buy a 37% stake in Indonesia's PT Eagle High Plantations Tbk for US$505.4 million (RM2.26 billion).

The acquisition came at a time when Felda has reported two consecutive fiscal years of losses after the public listing of FGV in June 2012.

According to the statutory body's annual reports, Felda, at the group level, incurred a net loss of RM1.04 billion for FY14, narrowed by 48% from RM1.99 billion in the immediate preceding year. These losses have resulted in Felda's accumulated funds dropping by 16.46% to RM13.47 billion as at FY14, from RM16.12 billion in FY12.

Felda has not presented its FY15 audited account to Parliament yet.

Tex Cycle Technology (M) Bhd had on July 28, 2016, via its solicitors,  issued a statement of claim against FACT System (Malaysia) Sdn Bhd.

The parties had tried for mediation on Dec 7, 2016 but did not reach a settlement.

"The case management was held on Jan 10, 2017 to update the court on mediation and trial of this matter has been fixed on April 7, 2017 and April 14, 2017," it said.

Tex Cycle claims that FACT System had breached a contract in respect of the successful implementation of the FACT system pursuant to the former's requirement for the implementation on goods and services tax (GST) within the GST deadline and in accordance with its service requirements, it said.

Tex Cycle is claiming for damages of RM1.06 million, refund of the contract sum, interest and any other cost which the court deems fit and proper to grant, it added.

However, on Sept 15, 2016, in its counterclaim filed, FACT System is seeking for a sum of RM38,668.80 for the additional 76 hours spent on the software implementation for Tex Cycle, interest and other reliefs deemed fit and proper by the court.

HIL Industries Bhd has entered into two conditional share sale agreements through its wholly-owned subsidiary, AMJ Construction Sdn Bhd (AMJC), for the proposed acquisition of A&M Concrete Products Sdn Bhd (A&M Concrete) and Show Piece Sdn Bhd (Show Piece) for a total of RM71 million.

The first agreement was between AMJC and A&M Concrete major shareholders, Steven Junior Ng Kwee Leng and Malcolm Jeremy Ng Kwee Seng for the purchase of A&M Concrete.

The second agreement was between AMJC and Tan Sri Ng Boon Tong and Datuk Milton Norman Ng Kwee Leong for the proposed acquisition of Show Piece.

According to a filing with Bursa, the proposed acquisition of the 99% equity interest in A&M Concrete will cost RM22 million while the proposed acquisition of the entire equity interest in Show Piece, which in turn holds 100% equity interest in Innocentral Sdn Bhd (Innocentral), will cost RM49 million.

Kwee Leng and Kwee Seng will sell 49% and 50% of their stake in A&M Concrete respectively to HIL Industries. As for the proposed acquisition of Show Piece, it will be through Boon Tong who holds 99% stake in Show Piece while another 1% will be through Kwee Leong.

Boon Tong, Kwee Leong and Kwee Seng are the directors and major shareholders of HIL Industries while Kwee Leng is also a major shareholder of HIL Industries.

The announcement filed with Bursa said that the proposed acquisition fits into the group’s business strategy to expand its property division and to reduce reliance on the manufacturing segment. A&M Concrete and Show Piece have obtained the approvals for the development of the Bukit Kemuning Land and the Sungai Jati Land I and the prospective development projects are expected to contribute positively to the Group’s future financial performance thereby enhancing HIL’s shareholders’ value.

Both the proposed acquisitions will be entirely satisfied via AMJC’s internally generated funds.

The purchase consideration for the proposed acquisition of A&M Concrete represents a discount of approximately 1.39% from the proportionate share of the adjusted net asset of A&M Concrete.

As for the purchase consideration for the proposed acquisition of Show Piece, it represents a discount of approximately 10.83% from the adjusted net asset of Show Piece. This was based on the indicative market value of the Sungai Jati Land of RM90 million as appraised by the independent valuer in its valuation report dated Dec 21, 2016.

Mudajaya Group Bhd says the decision in an adjudication process will have a negative impact of RM98.35 million on its earnings for the year ended Dec 31, 2016, as the amount has been recognised as revenue in prior years.

The group's wholly-owned subsidiary, Mudajaya Corporation Bhd (MCB), had commenced adjudication proceedings against CMC Machipex Sdn Bhd in October 2015 for a principal sum of RM175.3 million together with late payment interest and cost.

MCB sought payment claim for work done and due to non-payment by CMC. CMC admitted some of the claims and in turn made a counter claim in the form of a set-off in the amount of RM61.8 million.

"MCB intends to pursue this claim matter in accordance to the provisions of the subcontract agreement which includes negotiations via Dispute Adjudication Board and arbitration," it said.

Mudajaya said it will make the necessary announcement as and when there is a material development on the matter.

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