Rev Asia, Zelan, Daya Materials, JayCorp and Digi

-A +A

KUALA LUMPUR (July 12): Based on corporate announcements and news flow today, companies that may be in focus on Monday (July 15) may include the following: Rev Asia Bhd, Zelan Bhd, Daya Materials Bhd, JayCorp Bhd and Digi.Com Bhd.

Rev Asia Bhd has inked a term sheet to buy a 60% stake in Orissa Wicomm Pte Ltd, a telecommunication and industrial sector integrated solutions provider, for up to RM12.4 million.

The announcement came concurrently with Rev Asia’s decision not to extend an initial Memorandum of Understanding with Catcha Group Pte Ltd to acquire a foreign company with foreign operations.

As it stands, it intends to pay RM4 million cash and RM2 million worth of new Rev Asia shares for the acquisition.

The balance RM6.4 million may be satisfied in two tranches of RM3.2 million each, via cash or further new shares in Rev Asia, adding that the mode of payment for the balance will be at its "absolute discretion".

An international tribunal has sided with Dongfang Electric Corp in a US$1.15 million suit filed by the company against Zelan Bhd. In total, Zelan will have to fork out RM5.74 million in respect of the Dongfang arbitration.

The notice of arbitration arose in respect of disputes and differences arising from a 2014 agreement between wholly-owned subsidiary, Zelan Holdings (M) Sdn Bhd and Dongfang.

Practice Note 17 company Daya Materials Bhd said it has defaulted on another payment to AmBank (M) Bhd amounting to RM418,796, bringing its total debt to the bank to RM1.53 million.

Previously, Daya Materials had defaulted on two other payments to AmBank, one amounting to RM835,483 on July 5, and another amounting to RM277,638, which was due on June 27.

It said its failure to pay for the banking facilities was due to its subsidiary Daya CMT Sdn Bhd's cash flow constraints that resulted in it not being able to pay its payment obligations to AmBank in a timely manner.

JayCorp Bhd is partnering Hongkong-based Honsoar International Ltd (HIL) to manufacture and sell kitchen cabinets and bathroom vanity cabinets.

The two companies signed an agreement yesterday to form a joint venture, Honsoar Cabinetry Sdn Bhd, to undertake the business, it said.

JayCorp will have a 60% equity interest in Honsoar Cabinetry, with HIL holding the remaining 40%. The joint venture is anticipated to commence business by the second quarter of the financial year ending July 31, 2020.

Digi.Com Bhd saw net profit in the quarter ended June 30, 2019 (2QFY19) rise 2.12% to RM392.38 million from RM384.34 million a year earlier on deferred tax overprovision, which helped mitigate lower revenue and higher depreciation and amortisation incurred in the period.  

The telco provider also saw lower expenses in the quarter, driven by its efficiency initiatives and supported by the absence of a RM40 million restructuring cost — which mitigated the higher finance costs, its company filing showed.  

Digi has declared a second interim dividend of 5 sen per share totalling RM389 million, up from 4.9 sen a year ago, payable on Sept 27. Total dividends for the first half of FY19, however, remained lower year-on-year at 9.3 sen, compared with 9.8 sen in 1HFY18.

Quarterly revenue slipped 4.3% to RM1.55 billion from RM1.6 billion previously, as a 13.2% decline in prepaid revenue offset its gains in postpaid revenue.