KUALA LUMPUR (June 16): Based on corporate announcements and news flow today, stocks in focus on Monday (June 19) may include E&O, Fajarbaru, Anzo, Boustead, Hengyuan Refining, Top Glove, Rev Asia and NetX.
Property Developer Eastern & Oriental Bhd (E&O) is divesting one of its subsidiaries, E&O Express Sdn Bhd (EOE), which owns and operates the Lone Pine Hotel in Batu Feringghi, Penang, for RM85 million.
Following the divestment, E&O expects to realise an estimated gain on disposal after taxation of approximately RM23.3 million. A share sale agreement has been inked with Langkawi Saga Shopping Centre Sdn Bhd and Lubritrade Trading Pte Ltd to effect the disposal.
Of the sale proceeds, the bulk will be used for working capital and repayment of bank borrowings, while RM1.14 million will be used for estimated expenses with regards to the proposed sale.
Specifically, E&O said RM21.84 million will be used for settlement of a redemption sum owed by EOE to an unnamed local financial institution, while RM11.09 million will be to settle a loan EOE took from E&O.
Fajarbaru Builder Group Bhd has bagged a RM12.8 million contract from Petronas Dagangan Bhd (PetDag) to build an underground pipeline foundation at klia2.
The contract, awarded to its wholly-owned unit Fajarbaru Builder Sdn Bhd, is for the engineering, procurement, construction and commissioning of phase two of Jet-A1 underground pipeline foundation and associated works for PetDag's subsidiary, Kuala Lumpur Aviation Fuelling System Sdn Bhd.
The contract, which is the group’s third this year, is for 34 weeks starting today.
Anzo Holdings Bhd has clarified that there were no off-market transactions done on June 15 after making due enquiries with all its directors and major shareholders.
In a Bursa Malaysia filing, the company said an article by theedgemarkets.com yesterday that reported a 22% stake in Anzo crossed off-market that day was not true.
Boustead Holdings Bhd’s 51%-owned subsidiary MHS Aviation Bhd (MHS) was given a 90-day notice by Petronas Carigali Sdn Bhd's (PCSB) over the latter's intention to terminate a contract originally signed in June 2011.
Boustead said MHS received the letter notifying of PCSB’s intention to terminate, without cause, the contract for the provision of rotary wing aircraft, equipment and services for Heavy Type Aircraft EC225.
Boustead said the notice of termination was received while discussions between the parties about an arbitration notice served by MHS to PCSB due to an alleged breach of contract – in which MHS was claiming RM42.7 million in damages – was ongoing.
MHS was originally engaged by PCSB to provide it with five EC225 helicopters to be used in PCSB's oil and gas exploration and production operations.
However, the use of the helicopters was unilaterally suspended by PCSB after two forced landings in the North Sea in May and October 2012 involving EC225 helicopters that were unconnected to the parties in the present case, Boustead said.
Hengyuan Refining Co Bhd is investing US$160 million (RM700 million) in two projects at its refining complex in Port Dickson, Negri Sembilan.
Investment in the first project, estimated at US$135 million would enable the group to economically produce Euro 4M Mogas with the installation of an integrated complex.
The second project, estimated at US$25 million, involves the replacement of the top dome and catalyst separation system of the regenerator reactor of the Long Residue Catalytic Cracking Unit (LRCCU).
The world’s largest glove maker Top Glove Corp Bhd posted a 24% rise in net profit to RM77.71 million for the third quarter ended May 31, 2017 (3QFY17), from RM62.46 million a year earlier.
Quarterly revenue grew 29% to RM869.64 million from RM672.27 million a year ago. It also announced a first interim dividend of six sen per share for the financial year ending Aug 31, 2017 (FY17).
For the cumulative nine-month period, however, net profit contracted 20% to RM234.08 million from RM295.41 million in the previous year, despite 16% growth in revenue to RM2.51 billion from RM2.17 billion.
Rev Asia Bhd asserted that its core business will remain in the technology sector following the sale of its 70%-owned digital media subsidiary to Media Prima Bhd.
In May, the Internet media company sold its subsidiary Rev Asia Holdings Sdn Bhd (RAHSB) to Media Prima for RM105 million, thereby divesting its entire stake in the digital media arm.
After the group's annual general meeting today, Rev Asia independent non-executive chairman Datuk Larry Gan Nyap Liou told reporters the group expects the sale to be completed by the third quarter of this year, and will award shareholders with the proposed dividend of 44 sen per share.
On completion of the sale, Gan said Rev Asia should have up to RM8 million cash, which will be used for new business acquisition.
NetX Holdings Bhd has proposed to issue and allot up to 500 million new shares to Australian investment bank Macquarie Bank for about RM25.5 million, which it will use to fund the development of a mobile payment exchange (MPex) system.
NetX said Macquarie Bank does not have any intention to seek the nomination of any person to the board or the removal or replacement of any person from the board, or to participate in the management or decision-making of the Company.
Of the RM25.5 million gross proceeds expected to be generated from the exercise — based on an illustrative subscription price of 5.1 sen per subscription share — RM20 million will be used to develop and market the MPex system, whereas the remaining RM4.65 million will be used as working capital.
NetX’s principal activities include the provision of mobile payment systems in the form of electronic funds transfer at point of sale (EFTPOS), which is an electronic payment system involving electronic funds transfers based on the use of payment cards, such as debit or credit cards, at payment terminals located at points of sale.