KUALA LUMPUR (May 12): Based on corporate announcements and news flow today, companies in focus next Monday (May 17) may include Berjaya Land Bhd, Berjaya Food Bhd, Eastern & Oriental Bhd, Kerjaya Prospek Group Bhd, YTL Corp Bhd, AirAsia Group Bhd, Cabnet Holdings Bhd.
Berjaya Land Bhd (BLand) has sold an aggregate of 15 million shares or a 4.22% stake in Berjaya Food Bhd (BFood) over the past two days via direct business transactions for RM27.61 million at an average of RM1.84 per share. Following the disposals, BLand and its subsidiaries hold 11.55 million of BFood shares, representing a 3.25% stake. Net proceeds from the disposals will be used for working capital, BLand said in a bourse filing, adding the disposals also enabled it to cash out part of its investment in BFood. "There is no gain or loss arising from the disposal," it added.
Property developer Eastern & Oriental Bhd (E&O) does not plan to merge with any entities in the near term, including construction player Kerjaya Prospek Group Bhd, according to the majority shareholder of both companies, Datuk Tee Eng Ho. This is because there is no synergy to be derived from by merging the two companies at this juncture, said Eng Ho, who is also co-founder and non-executive chairman of Kerjaya Prospek. Eng Ho was also appointed E&O's executive chairman today.
Separately, Kerjaya Prospek announced that Eng Hoo has been redesignated as non-executive chairman from executive chairman previously, while his brother Tee Eng Tiong has been made chief executive officer.
YTL Cement Bhd, a subsidiary of YTL Corp Bhd, today inked an agreement to sell its entire cement and ready-mixed concrete operations in Malaysia to its 76.98%-owned subsidiary Malayan Cement Bhd, for RM5.16 billion in a cash and stock deal.
Of the total consideration, which YTL Cement said is still subject to adjustments, RM2 billion will be settled in cash. Malayan Cement will then issue 375.5 million new shares to YTL Cement to satisfy RM1.41 billion, and issue 466.7 million new irredeemable convertible preference shares (ICPS) for the remaining RM1.75 billion. YTL Cement's shareholding in Malayan Cement is expected to increase to 78.58% on completion of the proposed transaction and the ongoing private placement of up to 85 million new Malayan Cement shares announced on April 15, 2021, assuming no conversion of the ICPS to be issued.
AirAsia Group Bhd said today its wholly-owned Asia Digital Engineering Sdn Bhd (ADE) has obtained the Civil Aviation Authority of Malaysia's base maintenance approval, which allows ADE to offer aircraft maintenance, repair and overhaul (MRO) services.
"With the approval, ADE will now not only perform regular line maintenance, but also base maintenance (hangar or C-checks) for AirAsia Group's airlines, and will also be available to support third-party airlines for aircraft MRO," according to budget airline AirAsia Group's statement today.
Building management solutions provider Cabnet Holdings Bhd is acquiring engineering services firm CEE M&E Engineering Sdn Bhd for RM16.29 million in cash, to extend its business activities to include electrical engineering services from medium and low voltage to extra-low voltage as well as mechanical engineering services. The deal comes with a two-year profit guarantee of RM4 million for the financial years ending Aug 31, 2021 and 2022.