Vertice, CB Industrial Product, KNM, RHB, Scomi, Utusan Melayu, Integrated Logistics and Teo Guan Lee

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KUALA LUMPUR (Feb 13): Based on corporate announcements and news flow today, stocks in focus on Thursday (Feb 14) may include: Vertice Bhd, CB Industrial Product Holding Bhd, KNM Group Bhd, RHB Bank Bhd, Scomi Group Bhd, Utusan Melayu (Malaysia) Bhd, Integrated Logistics Bhd and Teo Guan Lee Corp Bhd.

HLB Ler Lum has served a notice to resign as the external auditor of Vertice Bhd in line with the group’s policy to periodically rotate its auditors.

Vertice said the policy was adopted as a matter of good corporate governance to benefit from fresh perspective and views of another professional audit firm and thus, further enhance the value of audit.

“HLB Ler Lum has been the auditor of Vertice for over 10 years. The board is of the view that the resignation of the auditor is timely and wishes to effect the change of external auditors to another major international audit firm,” it said.

CB Industrial Product Holding Bhd (CBIP) has bagged four contracts worth a combined RM131.7 million to build two palm oil mills, a palm kernel crushing plant and a biogas power generator plant.

The contracts, clinched through CBIP’s wholly-owned unit PalmitEco Engineering Sdn Bhd, were awarded by Indonesian plantation companies PT Sanjung Makmur and PT Kodeco Agrojaya Mandiri.

Sanjung Makmur had awarded an RM44.75 million contract to build a palm oil mill, with processing capacity of 45 tonnes of fresh fruit bunches (FFB) per hour within 18 months.

Meanwhile, Kodeco Agrojaya Mandiri awarded three contracts totalling RM86.96 million to build a palm oil mill with processing capacity of 60 tonnes of FFB per hour, a kernel crushing plant with processing capacity of 200 tonnes per day and a 1,600-kilowatt biogas power generator plant.

KNM Group Bhd has secured a contract to supply a Dutch-based firm with PME-pressure vessels-separators for US$6.49 million (RM26.38 million).

The group said its wholly-owned unit KNM Process System Sdn Bhd received the purchase orders from Single Buoy Moorings Inc (SBM) today, to be used for SBM’s Liza Unity floating production storage and offloading (FPSO) engineering, procurement, construction and installation project in the Starbroek block in Guyana, South America.

“The supply and delivery duration of the goods is for a period of 13 months, commencing from the date of the purchase orders respectively,” it said.

RHB Bank Bhd’s recently-launched US$300 million senior unsecured notes, which is the third issuance under its US$5 billion Euro Medium Term Note (EMTN) programme, has been oversubscribed by six times.

“The order book at the final price guidance stood at over US$1.8 billion,” RHB said.

The bank expects to complete the issuance of the senior notes by Feb 19. They will be listed on the Singaporean stock exchange and and Labuan International Financial Exchange Inc.

The senior notes are rated A3 by Moody’s Investors Service Inc.

Scomi Group Bhd's subsidiary has defaulted on RM201.91 million bank facilities due to Malayan Banking Bhd (Maybank).

Scomi Rail had received a notice of demand from Maybank for a sum of RM201.91 million, as the latter had failed to repay the bank facilities.

Scomi Group also received a notice of demand from Maybank amounting to RM113.96 million, due to Scomi Rail's default. The bank is reserving the right to dispose of the shares of a subsidiary that was secured against the bank facilities, in the event the amount demanded is not paid.

Both groups are in the process of negotiating a resolution with Maybank.

Utusan Melayu (Malaysia) Bhd is appealing a High Court ruling in favour of media company Redberry Sdn Bhd, which is seeking the return of an RM8.5 million deposit paid to Utusan in April last year.

Utusan said the board of directors has instructed its solicitors to appeal to the Court of Appeal against the High Court's decision in Redberry’s favour on Feb 11.

"Despite the High Court's decision, the company’s counterclaim against the plaintiff (Redberry) for inter alia the sums totalling RM48.32 million, general damages and exemplary damages under the main suit still subsists, which counterclaim will extinguish the summary judgment obtained by the plaintiff for the sum of RM8.5 million," it added.

Integrated Logistics Bhd is selling its entire 50% stake in Integrated National Logistics DWC-LLC (INL), a loss-making logistics company in Dubai, for 45 million dirham (RM50.4 million).

The buyer is National Trading & Developing EST (NTDE), which owns the other 50% of INL.

NTDE is wholly-owned by Hassan Mohammad Kazem Ahmadi, who also owns a 2.6% stake in Integrated Logistics.

Clothing retailer Teo Guan Lee Corp Bhd saw a total of 7.94 million shares or 19.49% of its outstanding share capital traded off-market today, at 89.5 sen per share or a total of RM7.1 million.

This represents a 15.5 sen or 14.76% discount to the group’s last closing price of RM1.05. The identities of parties involved in the transaction were not made public at the time of writing.