KUALA LUMPUR (April 4): Based on corporate announcements and news flow today, companies in focus tomorrow (Tuesday, April 5) include Vivocom International Holdings Bhd, Suria Capital Holdings Bhd, Hibiscus Petroleum Bhd, CLIQ Energy Bhd, M-Mode Bhd, Boustead Holdings Bhd, S P Setia Bhd and TH Heavy Engineering Bhd.
Vivocom International Holdings Bhd (formerly Instacom Group Bhd)’s subsidiary has secured two aluminium and glazing works contracts that are collectively worth RM37.55 million.
In a filing with Bursa Malaysia today, Vivocom said its 78.6%-owned subsidiary, Neata Aluminium (M) Sdn Bhd, had received and accepted a letter of award from PBT Engineering Sdn Bhd for the execution and completion of aluminium and glazing works for a commercial development known as Third Avenue Cyberjaya.
The development comprises three office blocks with enclosed car parks and retail space located in Cyberjaya, Selangor.
The works will commence today and will take 17 months to complete, while the contract amount is RM22.55 million.
Neata also received and accepted another letter of award from V-Development Sdn Bhd for the design, supply and installation of aluminium doors and windows and glazing works for a gated housing scheme in Gombak, Selangor.
This project will begin on July 1 this year and will be completed within 18 months. The contract is worth RM15 million.
Suria Capital Holdings Bhd has appointed its group chief executive officer Ng Kiat Min as the group managing director (MD) effective April 1.
In a filing with Bursa today, the port services and facilities provider said Ng was the group's chief executive officer (CEO) since July 29 last year, following the demise of the group's MD Datuk Mohd Fowzi Razi on July 12 last year.
Ng, 58, joined Suria Capital in 2001 as the senior manager (corporate development) and had been instrumental in securing the group’s core business, such as Sabah Ports, through a privatisation exercise during her tenure.
Hibiscus Petroleum Bhd’s wholly-owned subsidiary Gulf Hibiscus Ltd (GHL) has filed a complaint at the Oslo Conciliation Board to claim compensation against the directors and general manager of Lime Petroleum Norway AS, for financial losses suffered relating to the latter’s restructuring.
In a filing with Bursa today, the group named Lime Norway directors, Hans Ove Leonard Lidgren and Svein Helge Kjellesvik; and Lime Norway general manager Ivar Aarseth, as defendants.
The claim is for an estimated value of US$35 million (RM136 million) and above.
Hibiscus said the individuals named in the suit were among the "primary perpetrators who contributed to damages suffered by GHL, due to their actions taken to effect a substantial dilution of Lime Plc’s shareholdings interest in Lime Norway, after the restructuring".
Hibiscus had purchased a 35% equity stake in Lime Plc for US$55 million in 2012, via GHL. Lime Petroleum had undergone a restructuring exercise, comprising a reduction in share capital, by cancelling 900,000 shares held by Rex International Investments Pte Ltd.
The NOK77.4 million (RM36 million) arising from the cancelling of shares, were paid through a selective capital repayment to Rex, which Hibiscus said gave “Rex an unreasonable benefit at the expense of Lime Plc”.
CLIQ Energy Bhd, which failed to meet its March 9 deadline to acquire its qualifying asset (QA), has appointed Crowe Horwath Advisory Sdn Bhd to provide it with pre-liquidation services.
The announcement came nearly a month after the special purpose vehicle company (SPAC) said it has received numerous offers to undertake its liquidation and was in the process of shortlisting the liquidator last month.
CLIQ told Bursa Malaysia today that Crowe Horwath will provide preliquidation services, including review of the latest financial statements, to assist the board on the best mode to wind up the company.
It added that Crowe Horwath will also work together with the company's secretary and share registrar to issue the necessary requisite notices of meetings to convene the liquidation process, after Saturday, April 9.
"Crowe Horwath will also ensure that the filing requirements of the necessary forms/documents with the Companies Commission of Malaysia (CCM) pursuant to the requirements of the Companies Act 1965, is met," CLIQ said.
CLIQ had proposed to buy a 51% stake in a special purpose vehicle that will host Phystech Firm LLP's two onshore Kazakhstan oilfields for US$110 million (RM455 million) last year, but the application for the acquisition was returned by Securities Commission of Malaysia (SC) in January, due to incomplete information.
CLIQ’s request for time extension for the proposed acquisition was rejected by the SC. Hence, it announced on Feb 24 that it will be liquidated.
Celcom Mobile Sdn Bhd has suspended its mobile content services with M-Mode Bhd, effective March 5, until further notice.
In a filing with Bursa Malaysia today, M-Mode said its wholly-owned subsidiary M-Mode System Sdn Bhd had on Friday (April 1) received a notice of suspension of services from Celcom.
According to the notice, Celcom has decided to embark on a journey to provide trusted mobile content services to its customers, in view of the current rapid increase of customer complaints in the mobile content industry.
It noted that during the suspension period, M-Mode System will be migrated to new platforms introduced by Celcom, namely Gamestore, Big Win, Escape and Emomi365; and that there is no new acquisition of services either, to allow the present subscribers who have paid for the services to continue enjoying the services, until they opt out of the services.
M-Mode said it is unable to ascertain the actual financial impact of the new acquisition at this juncture. However, for the financial year ended Dec 31, 2015, the revenue generated from the subscriptions of the services pursuant to the agreement, was RM2.6 million per month.
Boustead Holdings Bhd, which has high borrowings of RM8.03 billion, expects the disposals of a quarry land and plantation land in Johor, and a stake in property company Jendela Hikmat Sdn Bhd, to realise half a billion ringgit.
Following its recent rights issue plan and some non-core assets disposal, the group expects its gearing ratio to be pared down to 0.9 times by the end of this year, from 1.1 times currently.
The group's deputy chairman and managing director Tan Sri Lodin Wok Kamaruddin said debt reduction is a priority, given its high gearing.
According to the annual report, the disposal of the plantation land in Johor will net the group, a profit of RM120 million; while the 30% stake in Jendela Hikmat will realise a profit of RM198 million.
Meanwhile, at its EGM today, the group passed its proposed rights issue that will involve the issuance of up to 413.67 million new shares at 50 sen each. The plan is expected to raise over RM1 billion for the group.
S P Setia Bhd has confirmed its acting president and chief executive officer Datuk Khor Chap Jen as executive president and CEO, Datuk Wong Tuck Wai as deputy president and chief operating officer, and Choy Kay Yew as chief financial officer, effective April 1.
According to a filing with Bursa Malaysia today, S P Setia said Khor, 56, who has 287,811 direct shares in the company, is acting president and chief executive officer (CEO) since Jan 1, 2015.
In a statement, S P Setia chairman Tan Sri Dr Wan Mohd Zahid Mohd Noordin said he is confident that the confirmation of these three key management positions would continue to contribute positively to the sustainable growth of the company.
TH Heavy Engineering Bhd said that it is seeking clarification from Petronas Carigali Sdn Bhd on the exclusion of its 70%-owned THHE Fabricators Sdn Bhd (TFSB) from participating in future tenders by Petronas Carigali, for two years.
In a filing with Bursa Malaysia, TH Heavy said it received a fax from Petronas Carigali on April 1, in relation to TFSB’s ongoing contract execution performance for the procurement, construction and commissioning of KNPG-B Topside PH II, Kinabalu Non-Associated Gas (NAG) development project.
“The letter states that due to performance-related issues pertaining to the execution of the Kinabalu Project, TFSB will be excluded from participating in future Petronas Carigali tenders for a duration of two years,” said TH Heavy.
The group said it will be taking appropriate measures to mitigate the matter, including appealing to Petronas Carigali, as the project has achieved 91% in terms of completion of onshore construction.
“The aforesaid exclusion of TFSB from participating in future Petronas Carigali’s tender is not expected to have any material impact on the full year 2016 financial results of the company,” it said.
The group added that any impact is further mitigated by its diversified revenue stream, which comprises onshore fabrication, fabrication of specialised equipment and offshore fabrication.