KUALA LUMPUR (Sept 7): Based on corporate announcements and newsflow today, companies in focus tomorrow (Sept 8) may include: Century Logistics, Wah Seong, Telekom, Sunsuria, Berjaya Food, L&G, Magna Prima, Bioalpha and NWP Holdings.
Century Logistics Holdings Bhd, which saw its share price reach record high today, announced that trading in its shares will be suspended tomorrow in the morning session, pending an announcement.
In a bourse filing, Century Logistics said the regulator has approved its request to suspend its share trade with effect from 9am to 12.30pm tomorrow (Sept 8), pending the release of a material announcement.
Wah Seong Corp Bhd bagged an estimated €600 million (RM2.73 billion) contract involving pipe coating services for the Nord Stream 2 gas pipeline, which is about 1,200km.
Nord Stream 2 is a proposed gas pipeline via the Baltic Sea.
"The contract is for the provision of pipe coating services, which is the core business of the WSC (Wah Seong) group and the risks are the normal operational risks associated with the provision of pipe coating services.
"The contract is expected to contribute positively to the earnings of WSC group over the contract period. The contract will be project-specific and is not renewable," Wah Seong said.
Telekom Malaysia Bhd's (TM) wholly-owned unit Mobikom Sdn Bhd has subscribed to RM495 million (nominal value) of the second tranche issuance of webe's convertible medium term note (CMTN).
In a filing with Bursa Malaysia, TM said the proceeds of this CMTN subscription will be utilised to fund the implementation of webe's business plan.
"As a result of Mobikom's subscription to the CMTN, TM's (via Mobikom) shareholding in webe on a fully diluted basis is 82%, while Green Packet Bhd (via Packet One Sdn Bhd) and SK Telecom Co Ltd [are] 13.2% and 4.8% respectively, under the terms of the Investment Agreement," it said.
However, TM's shareholding in the ordinary equity of webe remains at 72.9%, subject to further conversion of the CMTNs and/or exchange and conversion of the exchangeable medium term note (EMTN) into webe's shares.
Sunsuria Bhd and its wholly-owned unit Sunsuria North Sdn Bhd (SNSB) plan to sell two shares of RM1 each in Concord Property Management Sdn Bhd, representing 100% of the latter's entire issued and paid-up share capital, for RM38.1 million.
In a bourse filing, Sunsuria said it entered into an unconditional share purchase agreement (SPA) with Singapore-based Creed Investments Pte Ltd and Sunsuria executive chairman Datuk Ter Leong Yap following its exercise of put option.
Both Creed Investments and Ter would also acquire from SNSB 12,500 ordinary shares in CI Medini Sdn Bhd, representing 0.95% of the issued and paid-up share capital of CI Medini, for RM1.8 million.
Berjaya Food Bhd started its financial year ending April 30, 2017 (FY17) with an 18.08% drop in its first quarter's net profit to RM5 million or 1.32 sen a share from RM6.1 million or 1.63 sen per share a year ago.
The drop in profit was despite the company chalking up a 6.77% sales growth; the weaker ringgit in the quarter caused its Starbucks coffee chain's profit margin to shrink, it said in a bourse filing.
Berjaya Food also halved the first interim single-tier dividend to half a sen. It will be traded ex on Oct 11, and payable on Oct 26.
Revenue in 1QFY17 was RM141.37 million, against the previous corresponding quarter's RM132.41 million.
Property developer Land & General Bhd (L&G) is not putting any of its launches on the back burner, as it anticipates the market to gradually recover starting next year.
Its managing director Low Gay Teck said the group will be launching projects worth RM1.6 billion in the current financial year ending March 31, 2017 (FY17), and this will be its main earnings growth driver.
The projects include Phase 1 of Sena Parc in Senawang, Negeri Sembilan (RM260 million), Phase 3 and 4 of Damansara Foresta in Bandar Sri Damansara (RM480 million) and Astoria along Jalan Ampang (RM860 million).
L&G has unbilled sales of RM80 million, which could support its earnings in FY17.
Magna Prima Bhd's proposed acquisition of a 5.25-acre leasehold land in Shah Alam for RM43 million to be developed into a residential project is deemed as fair and reasonable, says Affin Hwang Investment Bank Bhd.
The proposed acquisition is considered a related party transaction.
Affn Hwang, the independent adviser to Magna Prima shareholders who have no interest in the deal, said it has noted that the price tag represented a premium of RM5 million or 13.2% over the market value of the land, as ascribed by Messrs Khong & Jaafar Sdn Bhd, the independent valuer.
It said while the price appears to be not fair, the proposed acquisition, rendered on an overall basis, is fair and reasonable and is not detrimental to the non-interested shareholders.
Bioalpha Holdings Bhd has proposed to undertake a renounceable rights issue on the basis of one rights share for every five existing ordinary Bioalpha shares to potentially raise up to RM28 million, which will be mainly used for launching new products and developing its herbal park in Terengganu.
In a statement, Bioalpha said the rights issue also comes with one free warrant for every rights share subscribed on an entitlement date to be determined later by the company's board of directors.
"The exercise entails issuance of 133.3 million rights shares together with 133.3 million warrants, based on the enlarged issued and paid-up share capital of Bioalpha following the completion of the one-for-three bonus issue," it added.
The issue price of the rights shares and the exercise price of the warrants shall be determined and announced at a later date.
Loss-making timber products manufacturer NWP Holdings Bhd announced that it has been appointed as the turnkey contractor for several affordable housing projects.
In a bourse filing, NWP said its wholly-owned subsidiary NWP Builder Sdn Bhd had today entered into a turnkey construction heads of agreement with M2B World (M) Sdn Bhd, appointing NWP Builder as the turnkey contractor for several affordable housing projects.
M2B has agreed to award the construction contract worth RM744.96 million, subject to the parties entering into a definitive turnkey construction agreement within three months, the filing read.
NWP Builder is in the midst of applying as a Class G7 contractor with the Construction Industry Development Board, which shall allow it to tender for government and private sector projects of any size and amount.