KUALA LUMPUR (May 6): Based on corporate announcements and news flow today, stocks in focus for Tuesday (May 7) may include the following: DiGi.Com Bhd, Axiata Group Bhd, Salcon Bhd, Perak Corp Bhd, Bumi Armada Bhd, Straits Inter Logistics Bhd and Barakah Offshore Petroleum Bhd.
DiGi.Com Bhd's largest shareholder, Norway-based Telenor Group, are in discussions with Axiata Group Bhd regarding a potential non-cash combination of their telecom and infrastructure assets in Asia. DiGi said the proposed merger will be done via a new merged entity (MergedCo), in which Telenor would take a majority stake.
It is anticipated that Telenor, based on equity value, will own 56.5% in the MergedCo and Axiata will own 43.5%, with both parties acknowledging that this is preliminary and subject to adjustments and due diligence. There is also no certainty that these discussions will result in any transaction agreement between the parties, said DiGi.
Salcon Bhd's unit has bagged a sub-contract worth RM18.33 million for construction works for PNB Merdeka Ventures Sdn Bhd, from Gamuda M&E Sdn Bhd. The sub-contract is for the construction and completion of mechanical and electrical works, relocation of existing utilities and trunk sewer diversion at PNB Merdeka Venture's construction of the Jalan Belfield Tunnel.
Bursa Malaysia has publicly reprimanded Perak Corp Bhd and seven of its former directors for failing to issue its annual report for 2016 within the required period.
Bursa said Perak Corp had breached Paragraph 9.23(1) of the Main Listing Requirement for failing to issue its annual report that included the annual audited financial statements together with the auditors' and directors' reports for the financial year ended Dec 31, 2016 (FY16) by April 30, 2017.
The regulator said Perak Corp had only issued its 2016 annual report on June 6, 2017 after a delay of more than one month. Additionally, Bursa said Perak Corp had failed to review and ensure the adequacy and effectiveness of its financial reporting function and carry out a limited review on its quarterly report submissions for 3QFY16, 4QFY16, 1QFY17 and 2QFY17.
Bumi Armada Bhd said its joint venture (JV) company Shapoorji Pallonji Bumi Armada Godavari Pte Ltd (SPBAG) has been awarded a nine-year charter contract worth US$2.1 billion (RM8.8 billion), by India’s state-owned oil company, Oil and Natural Gas Corp Ltd. The contract is for the charter hire and operations of one Floating Production, Storage, and Offloading Vessel (FPSO).
The contract is for a fixed period of nine years, valued at US$2.1 billion, with an option to extend for an additional seven years on a yearly basis, at an aggregate contract value of some US$655 million if all extension options are exercised. SPBAG is a 30:70 joint venture between Bumi Armada and Shapoorji Pallonji Oil & Gas Pte Ltd of India (SPOGPL).
Straits Inter Logistics Bhd has signed an agreement with an upstream oil and gas (O&G) company Elsa Energy Sdn Bhd to explore potential acquisition opportunities.
The group said it has inked a non-binding Heads of Agreement (HoA) with Elsa Energy, which will pave the way for the finalisation and conclusion of a definitive share sale agreement in relation to the proposed collaboration.
The group said the HoA allows the two companies to explore potential business collaboration opportunities, particularly as Elsa is mainly engaged in O&G upstream segment while Straits Inter Logistics is involved in oil bunkering services and oil product trading.
Barakah Offshore Petroleum Bhd has entered into a Heads of Agreement with Minsheng Financial Leasing Co Ltd (Minsheng) to form a strategic partnership to explore areas of collaboration in relation to oil and gas projects under Minsheng’s portfolio.
The tenure of the agreement is for one year, effective today. The agreement serves as a strategic framework for a definitive agreement, where more detailed terms of the partnership will be determined.
Under the framework of the agreement, Barakah will provide its engineering expertise and technical know-how, as well as to explore opportunities together with Minsheng’s Offshore Leasing and Ship Chartering Portfolio.