Avillion, Sime Darby, Pentamaster, Sanbumi, PetChem and JHM

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KUALA LUMPUR (April 2): Based on corporate announcements and news flow today, stocks in focus for Wednesday (April 3) may include the following: Avillion Bhd, Sime Darby Bhd, Pentamaster Corp Bhd, Sanbumi Holdings Bhd, Petronas Chemicals Group Bhd and JHM Consolidation Bhd,

Avillion Bhd’s former group managing director See Ah Sing has been appointed back into the same role, after retiring from the position two years ago.

The hotel operator said it had redesignated him to group managing director from executive director.

Separately, Avillion announced Yulina Baharuddin has resigned as non-independent director due to personal reasons.

Sime Darby Bhd’s wholly-owned unit, Sime Darby Industrial Holdings Sdn Bhd, has disposed of a 53% stake in Sime Kubota Sdn Bhd to Kubota Corporation for RM25.87 million.

Following the disposal, Sime Kubota ceases to be an indirect wholly-owned subsidiary of Sime Darby but remains as a 40% associate company of Sime Darby.

Penang-based automation solution provider Pentamaster Corp Bhd has proposed a one-for-two bonus issue of up to 158.29 million new shares to be undertaken on a date to be determined later.

It said the proposed bonus issue is not expected to have any effect on the earnings of the group for the financial year ending Dec 31, 2019 (FY19). However, there will be a corresponding dilution in the earnings per share Pentamaster for FY19 as a result of the increase in the number of shares in issue arising from the proposed bonus issue.

Sanbumi Holdings Bhd’s unit Sanbumi Sawmill Sdn Bhd (SSSB) has inked a joint venture agreement today with Iconic Development Sdn Bhd (IDSB) for the proposed mixed development comprising shop lots, offices and a budget hotel, based in Seberang Perai, Penang.

SSSB said it shall facilitate the implementation and completion of the development project. Named ‘Iconic Point’, it has an estimated gross development value of RM127.81 million, and is expected to commence in July 2019 and be completed by June 2021.

It said in order for SSSB to participate in the development project, it shall pay IDSB an upfront participation fee of RM18 million which shall be satisfied via the proposed issuance of 57.32 million new redeemable convertible preference shares, at an issue price of 31.4 sen each.

Additionally, it is also proposing to raise an estimated RM22.04 million via the issuance of 74.7 million special issue shares at an indicative issue price of 29.5 sen, representing 30% of the group’s existing share capital to independent third party investor to be identified.

The estimated proceeds is expected to fund the development cost of the project as well as finance the expenses in relation to the proposals.

Petronas Chemicals Group Bhd's (PetChem) 50%-owned unit has executed the first phase of financing from various export credit agencies (ECAs) and banks for the repayment of a US$1 billion bridge loan.

Its unit Pengerang Petrochemical Company Sdn Bhd (PPC) had procured the first phase of the project financing amounting to US$400 million from various ECAs and commercial banks of which the financing document for the US$200 million was executed on April 1, 2019.

The subsequent financing document for US$200 million is expected to be executed by end of April 2019.

The remaining project financing of US$0.6 billion under phase 2 is expected to be executed by June 2019, bringing the total project financing amount to US$1 billion with a tenure of 15.5 years. The said proceeds will be utilised towards the repayment of the Bridge Loan.

JHM Consolidation Bhd is buying a factory based in Kedah for RM16.6 million cash as part of the group’s plan to expand its production area.

The group inked a sale and purchase agreement with Bernas Wirama Sdn Bhd today, it said in a Bursa filing.

“The acquisition will enable JHM Group to expand the production floor in order to increase its production capacity. The board views it as a strategic move for the JHM Group to own the Property, to improve and enhance operational efficiencies in long term. Cost reduction is expected to be derived from the efficiencies achieved,” the group said.