Hibiscus, Econpile, OCK, MMC, YTL Land, YTL Corp, Priceworth, MAHB, Ann Joo and Southern Steel

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KUALA LUMPUR (Oct 7): Based on corporate announcements and news flow today, stocks in focus on Tuesday (Oct 8) may include: Hibiscus Petroleum Bhd, Econpile Holdings Bhd, OCK Group Bhd, MMC Corp Bhd, YTL Land & Development Bhd, YTL Corp Bhd, Priceworth International Bhd, Malaysia Airports Holdings Bhd (MAHB), Ann Joo Resources Bhd and Southern Steel Bhd.

Hibiscus Petroleum Bhd's indirect wholly-owned subsidiary Anasuria Hibiscus UK Ltd (AHUK) is acquiring more oil and gas rights from United Oil & Gas PLC and Swift Exploration Ltd for up to US$5 million cash.

The latest two blocks are located offshore in the UK sector of the North Sea, 250km northeast of Aberdeen.

The blocks include the Crown Discovery, which consists of 2C contingent resources that range between 4 million and 8 million barrels of oil. The blocks are located 12km south-east of Marigold oil field, which together with the Sunflower field, was acquired by AHUK in October last year.

Econpile Holdings Bhd’s unit has been awarded a contract worth RM20.8 million to undertake earthworks, soil nailing works, piling and pile cap, as well as basement lowest floor slab works for a proposed commercial development in Subang Jaya. 

The contract, which was awarded to its wholly-owned subsidiary Econpile (M) Sdn Bhd today by Tropicana Metropark Sdn Bhd, is for 12 months. 

Econpile expects the contract to contribute positively to its revenue and earnings for the financial year ending June 30, 2020.

OCK Group Bhd has proposed to raise up to RM62.46 million via a private placement to fund its development and acquisition of green energy assets, as well as for working capital. 

The issue price has yet to be determined but will be issued based on a discount of not more than 10% to its five-day volume-weighted average market price, immediately preceding the price-fixing date.

Of the total, OCK has earmarked RM57.35 million for the development and acquisition of green energy assets, RM5 million for working capital and the remaining is for the estimated expenses for the exercise.

MMC Corp Bhd's 70%-owned subsidiary Pelabuhan Tanjung Pelepas Sdn Bhd (PTP) has withdrawn its RM31.86 million lawsuit against Rising Star Shipping Sdn Bhd (RSS) — the beneficial owner of tanker MV Trident Star — and The Shipowners' Mutual Protection and Indemnity Association (Luxembourg) Singapore branch (the Club).

MMC said PTP has resolved the claim by settlement with the Club, thus discontinuing the legal proceedings against RSS and the Club.

The withdrawal of the legal proceedings is not expected to have any significant financial and operational impact on MMC Group for the financial year ending Dec 31, 2019 (FY19).

Trading of securities in YTL Land & Development Bhd will be suspended from next Monday (Oct 14), being the expiry of five market days from the final closing date. 

This is as YTL Corp Bhd has secured 90.45% of YTL Land, as at the close of its takeover offer today. 

As at 5pm, YTL Corp had received valid acceptances resulting in it holding 749.95 million YTL Land shares and 902.91 million YTL Land irredeemable convertible unsecured loan stocks (ICULS), representing approximately 90.45% of the total YTL Land shares in issue and 91.04% of the total outstanding YTL Land ICULS respectively. 

Priceworth International Bhd today signed a log supply agreement with a unit of Innoprise Corp Sdn Bhd, under which Priceworth will issue new shares to Innoprise, amounting to a 30% stake in the company, for logs supplied. 

With this, the Priceworth will resume logging activities in the Yayasan Concession areas which will ensure a constant log supply for the Priceworth’s plywood and sawn timber mills. Priceworth also looks forward to the resumption of logging operations in Forest Management Unit (FMU) 5.

While this agreement would not have any material effect on the company for this financial year ending 2020, Priceworth expects positive contribution to its bottom line as soon as the next financial year.

Malaysia Airports Holdings Bhd (MAHB) will seek the necessary legal advice after AirAsia Group Bhd and its long-haul affiliate AirAsia X Bhd (AAX) filed a lawsuit against the airport operator last Friday (Oct 4).

MAHB today confirmed that its wholly-owned subsidiary Malaysia Airports (Sepang) Sdn Bhd was on Friday served by the solicitors of AirAsia and AAX with a writ of summons, claiming RM479.78 million for loss and damage allegedly caused by negligence at klia2.

Ann Joo Resources Bhd and Southern Steel Bhd signed a memorandum of understanding to establish a joint venture (JV) company to synergise opportunities in the long product steel manufacturing business.

Under the proposal, Southern Steel will be selling the entire equity interests including assets and liabilities of its units Southern Steel Rod Sdn Bhd, Southern Steel Mesh Sdn Bhd, Southern PC Steel Sdn Bhd and Danstil Sdn Bhd, to the JV company for RM742.5 million.

Ann Joo, meanwhile, will be disposing of its entire interest in Ann Joo Integrated Steel Sdn Bhd, Ann Joo Steel Bhd and Saga Makmur Industri Sdn Bhd to the JV company for RM907.5 million.

Upon completion of the proposal, the new JV company will be a 45%-associated company of Southern Steel and a 55%-subsidiary of Ann Joo.