KUALA LUMPUR: Based on corporate announcements and news flow on Tuesday, companies that may be in focus today may include: Fraser & Neave Holdings Bhd (F&N), Axiata Group Bhd, Axis Real Estate Investment Trust, Petronas Gas Bhd, Ecobuilt Holdings Bhd, AWC Bhd, Dayang Enterprise Holdings Bhd, Avillion Bhd, Globetronics Technology Bhd, ARB Bhd and Brahim’s Holdings Bhd
F&N, which is expecting 90% of the group’s beverages portfolio to be impacted by the upcoming sugar tax on July 1, will be producing original recipes in smaller pack sizes, as well as reducing sugar in its recipes to mitigate the impact of the new tax.
“We are also going through a portfolio transformation to produce more healthy product categories. We are investing RM30 million in our Shah Alam plant to enable multiple new products to be produced from October 2019,” its chief executive officer (CEO) Lim Yew Hoe said.
Axiata Digital Sdn Bhd, the digital arm of Axiata Group Bhd, has inked an agreement to sell its digital ventures portfolio at a valuation of US$140 million (about RM579 million) to Singapore-based investment fund, Pegasus 7 Ventures Pte Ltd.
The sale comprises ownership stakes in category-leading digital businesses such as India’s largest rural commerce platform, StoreKing, and global micro-insurance company, BIMA.
Axis Real Estate Investment Trust (Axis REIT), which is targeting to acquire RM200 million worth of property assets in the industrial space, has accepted a few offer letters, namely to acquire two freehold manufacturing facilities in Nusajaya, Johor for RM55.8 million and a leasehold manufacturing facility in Bayan Lepas, Penang which will be announced later.
Axis REIT Managers Bhd CEO and ED Leong Kit May said the REIT is currently undertaking due diligence on the target properties, and that it aims to complete the acquisitions by the first half of 2019.
Petronas Gas Bhd (PetGas) has further cut its capital expenditure (capex) allocation to RM1.2 billion for this year, compared with RM1.3 billion last year and RM1.4 billion in 2017.
The allocation will mostly be used for plant maintenance and plant turnaround as part of its growth strategy to ensure its plants run more efficiently.
Ecobuilt Holdings Bhd (formerly known as M-Mode Bhd) is buying the entire stake of construction firm Rexallent construction Sdn Bhd (RCSB) from Kilau Makmur Sdn Bhd (KMSB) for RM45 million by issue of new shares and cash.
In addition, KMSB, which is jointly owned by Chan Peng Kooh and Tan Chuan Cheong, has also taken up 102.4 million new Ecobuilt placement shares. Consequently, KMSB will emerge as the single largest shareholder holding a 32.5% stake in Ecobuilt.
AWC Bhd has secured a contract worth RM17.1 million to supply the Harsco Model RGH 10C Rail Grinding Vehicle (RGV) works for the Mass Rapid Transit 2 project. The duration of the contract is from April 30 until the expected completion by Sept 30, 2022.
Dayang Enterprise Holdings Bhd’s unit Dayang Enterprise Sdn Bhd has been awarded a five-year contract by SEA Hibiscus Sdn Bhd for the provision of maintenance, construction and modification (PM-MCM) works.
The value of the contract will be based on work orders issued by Sea Hibiscus throughout the contract duration starting Nov 2, 2018, and ending on July 16, 2023. The contract also includes a one-year extension option.
Avillion Bhd has inked a hotel management agreement (HMA) with R&R Sky Group Sdn Bhd (R&R Sky) for a fixed 10-year lease to operate and manage a new four-storey hotel located in Pulau Pangkor, Perak.
Amid subdued demand for smartphones, Globetronics Technology Bhd’s net profit plunged 80% to RM3.09 million for the first quarter ended March 31, 2019 (1QFY19) from RM15.19 million in the previous year’s corresponding quarter, as some customers reduced shipments. Revenue for the electronic components maker, who is involved in Apple’s supply chain for its iPhones, was down 49% to RM44.05 million from RM86.49 million a year earlier.
ARB Bhd, formerly known as Aturmaju Resources Bhd, is back in the black, with a record quarterly net profit of RM5.08 million for the three months ended March 31, 2019 (1QFY19) compared to a net loss of RM649,000 it posted a year prior. This is as revenue surged to its highest since 2015, at RM12.43 million in 1QFY19, from RM79,000 a year ago.
Separately, it announced it had inked a share sale agreement yesterday to dispose of two loss-making indirect units under the company’s non-operating timber business, which will result in an estimated gain of about RM3.61 million.
Brahim’s Holdings Bhd said it has decided to abort the private placement exercise that was announced in February 2018, after considering current market conditions including, among others, its deteriorating share price and its Practice Note 17 (PN17) status.
On Feb 21, 2018, Brahim’s announced its plan to raise cash for working capital purposes and to repay borrowings through a private placement of up to 23.63 million new shares, representing 10% of its share capital.