Thursday 28 Mar 2024
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KUALA LUMPUR (April 18): Based on corporate announcements and news flow today, companies in focus on Tuesday (April 19) may include: CIMB Group Holdings Bhd, Pecca Group Bhd, Can-One Bhd, Spring Gallery Bhd, Kimlun Corp Bhd, SCGM Bhd, Puncak Niaga Holdings Bhd, Malakoff Corp Bhd, Malaysia Marine and Heavy Engineering Holdings Bhd and Affin Holdings Bhd.

CIMB Group Holdings Bhd chairman Datuk Seri Nazir Razak announced that he will take a leave of absence effective today, amid an independent review on the banking activities relating to his personal account.

CIMB's board of directors had announced at this morning's annual general meeting that Nazir will take a voluntary leave of absence from his positions as chairman of CIMB and director of CIMB Bank Bhd, with effect from close of business today till the completion of the board review.

The board review, which commenced on April 5, is expected to be completed in a few weeks.

The board also appointed an external audit firm Ernst & Young to assist with the review.

"Unless I am completely absent from the company during this period, this institution would not be practising the highest standards of corporate governance that we want to stand for, and I would be undermining what I have described as my utmost career priority,” said Nazir.

Pecca Group Bhd will be listed on Bursa Malaysia tomorrow. 

The group had said the initial public offering ness by going beyond producing leather upholstery for cars to include the aviation industry.

Can-One Bhd today said it has not received any formal proposal or offer from any party expressing interest to acquire equity interest in its wholly-owned dairy manufacturing unit, F&B Nutrition Sdn Bhd.

However, it confirmed that it has been approached by a number of parties including Kumpulan Wang Persaraan (Diperbadankan) (KWAP) expressing interest to acquire a stake in its dairy manufacturing business.

Can-One said it will always consider and explore all potential opportunities and/or corporate proposals involving the businesses of Can-One Group of Companies including F&B Nutrition, in the best interest of Can-One and its shareholders.

KWAP chief executive officer Datuk Wan Kamaruzaman Wan Ahmad had reportedly that the pension fund was in the final stages of completing an acquisition of a 30% stake in F&B Nutrition for RM280 million.

Spring Gallery Bhd has bagged a construction job from Prinsip Nusantara Sdn Bhd (PNSB) and Spring Gallery's wholly-owned unit Profit Sunland Sdn Bhd (PSSB) to develop a RM260 million mixed development project in Johor.

In a filing with Bursa Malaysia today, Spring Gallery said it entered into a managing contractor agreement with PNSB, in which PSSB has been appointed as the managing contractor for the development on a 2.44ha land in Johor Baru.

The development project, which is located at Perling, Johor Bahru, has a gross development value of RM260 million and gross development cost of RM176.5 million, inclusive of the contract value awarded to PSSB and the land cost.

The land, which currently houses the Johor State Tennis Academy, is to be built into a mixed development. The tennis academy will be relocated to a 3.26ha land at Taman Nusa Duta, Johor Baru.

The development order is expected to be obtained in July 2016 and the targeted completion date of the project is 30 months from the execution date of the agreement.

Spring Gallery said modes of funding would be determined by the management at a later date.

Kimlun Corp Bhd plans to establish a dividend reinvestment plan (DRP) as an option for shareholders to reinvest their dividends instead of receiving cash.

Kimlun said that subject to approvals, the DRP will be applicable to the 5.8 sen per share final dividend announced on Feb 26 for the financial year ended Dec 31, 2015 (FY15).

The company said it is not obliged to undertake the proposed DRP for every dividend declared.

Under a minimum scenario, the shares to be issued pursuant to the DRP could amount to 11.1 million shares worth RM5.5 million, with an enlarged issued and paid-up capital of 311.6 million shares totalling RM155.8 million.

On a maximum scenario, the shares issued could amount to 13.3 million worth RM6.6 million, with an enlarged issued and paid-up share capital of 374 million shares totalling RM187 million.

Kimlun said the DRP would strengthen Kimlun's capital position to fund its working capital, capital expenditure and continuing expansion, and improve the share liquidity.

The implementation of the DRP on FY15 final dividend is expected to be completed by the third quarter of 2016, subject to shareholders' approval.

SCGM Bhd said it is acquiring three pieces of agricultural land in Kulai, Johor, for a total cash consideration of RM11.84 million, for its future expansion plans.

According to its filing with the exchange today, the three tracts, measuring a combined 7.76ha, will be used to expand its business in line with the rising demand for both domestic and international markets.

SCGM said the acquisition will contribute positively to the group’s earnings for the financial years 2018/2019.

SCGM said the acquisition will be funded via a combination of bank borrowings and internally generated funds, with the exact breakdown to be determined later.

The acquisition is expected to be completed within four months from the date of the agreement.

Puncak Niaga Holdings Bhd has entered into a heads of agreement (HoA) with TRIplc Bhd to commence talks for the potential acquisition of the latter's businesses.

TRIplc is involved in property construction, development and investment, and the provision of project management services and facilities management.

Puncak Niaga said both parties have agreed to a period of four months from the date of the non-disclosure agreement, which was also executed today, to evaluate the proposal.

"During the due diligence period or earlier mutual termination of the HoA, Puncak Niaga shall be granted exclusivity by TRIplc with respect to the proposed transaction," it said in a Bursa Malaysia filing.

Malakoff Corp Bhd has decided to withdraw a resolution relating to the payment of RM1.5 million in directors' fees from being tabled at its annual general meeting (AGM) on Thursday (April 21).

In a filing with Bursa Malaysia today, Malakoff said the decision was made by the board of directors after considering the feedback received from shareholders on the resolution.

Malaysia Marine and Heavy Engineering Holdings Bhd (MHB), a 66.5%-owned subsidiary of MISC Bhd, will start focusing on its marine business this year, amid a slowdown in the offshore oil and gas (O&G) sector.

MHB chairman Datuk Nasarudin Md Idris said it is targeting revenue of RM640 million from the marine segment in FY16, up 37% from the RM466.7 million recorded in FY15.

He also said MHB is currently assessing the economic feasibility of building a third dry dock, whether it will provide the kind of returns the group wants.

It was reported that MHB plans to spend RM500 million in capital expenditure for its third dry dock over the next few years.

Nasarudin also said the downturn in the O&G industry is expected to continue, which could hurt the replenishment its order book.

For FY16, Nasarudin said it is difficult to forecast whether the group needs to make further impairment provision if oil prices continue pointing south, saying if the situation worsens, more impairment might be made.

Affin Holdings Bhd is expecting loan growth to be flat at 7% for the financial year ending Dec 31, 2016 (FY16), citing subdued economic growth as a factor.

Affin chief executive officer Kamarul Ariffin said while the group will not have to incur significant impairment and voluntary separation scheme costs like last year, the banking sector is inevitably exposed to the country's slower economic growth pace.

In FY15, Affin Holdings's registered a loan growth of 6.9% to RM43.88 million against RM41.06 million in FY14.
 

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