Widad, Perdana Petroleum, S P Setia, KIP REIT, Perak Corp, Genting Malaysia, Selangor Dredging and Avillion

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KUALA LUMPUR (Oct 17): Based on corporate announcements and news flow today, companies that will be in focus tomorrow (Oct 18) may include: Widad Group Bhd, Perdana Petroleum Bhd, S P Setia Bhd, KIP Real Estate Investment Trust, Perak Corp Bhd, Genting Malaysia Bhd, Selangor Dredging Bhd and Avillion Bhd.

Widad Group Bhd, whose parent company Widad Business Group (WBG) put in a bid last week to take over concessionaires under PLUS Expressways Bhd from the Government, is forking out RM95.89 million to take up a 90% stake in Serendah Heights Sdn Bhd, which is the ultimate owner of a concession to develop and maintain the UiTM (Universiti Teknologi Mara) campus in Jasin, Melaka.

There are 14 years remaining to the concession that will end in 2034, valued at RM861.6 million. The proposed acquisition is expected to boost the group's order book, which now stands at RM910 million, to RM1.8 billion on completion of the buy.

Perdana Petroleum Bhd (PPB) is on track to return to the black in its coming financial year ending Dec 31, 2020 (FY20), since its shareholders have given their nod for the group’s proposed rights issue exercise as well as proposed provision of financial assistance to its major shareholder Dayang Enterprise Holdings Bhd (DEHB), which forms part of its debt restructuring plan.

The proposed renounceable rights issue of redeemable convertible preference shares (RCPS) is up to RM506.01 million in value.

Also, with the expected increase in contracts going forward, PPB is expected to see reduced dependency on its major shareholder for charters, especially if PPB could get better charter rates with other companies.

Setia City Mall — a joint venture between S P Setia Bhd and Lendlease Development (Malaysia) Sdn Bhd — is set to be the largest mall in Shah Alam when its expansion, which sees an investment of over RM500 million, is completed by the second half of next year.

Lendlease Development (Malaysia) Sdn Bhd head of retail (Malaysia) Mitch Wilson said the mall has achieved a 95% tenancy rate while the second phase has already secured a 70% tenancy rate, adding that the mall's traffic footfall is expected to increase by 30% following the completion of the expansion plan.

KIP Real Estate Investment Trust (KIP REIT)’s net property income jumped 36% to RM13.5 million for the first quarter ended Sept 30, 2019, (1QFY20) from RM9.94 million in the previous year’s corresponding quarter, helped by an unrealised gain on the acquisition of AEON Mall Kinta City.

The trust’s gross revenue grew 19% to RM18.49 million in 1QFY20 from RM15.59 million in 1QFY19. The REIT also declared a distribution of RM6.92 million or 1.37 sen per unit, payable on Nov 14, 2019.

Animation Theme Park Sdn Bhd (ATP), a 51%-owned unit of loss-making Perak Corp Bhd (PCB), has defaulted on its repayment of a syndicated term loan facility of up to RM280 million, which was granted by Affin Hwang Investment Bank Bhd, Affin Bank Bhd, Bank Pembangunan Malaysia Bhd and Malaysia Debt Ventures Bhd.

ATP — the developer, owner and operator of Movie Animation Park Studios (MAPS) — defaulted on an RM25.7 million repayment on Sept 26, 2019, citing cash flow constraints.

PCB confirmed it has been seeking to dispose of its interest in ATP to Perbadanan Kemajuan Negeri Perak (PKNP), and that the latter had confirmed, on Feb 21, its intent to takeover MAPS for no less than RM245 million.

Genting Malaysia Bhd has confirmed it is being sued by a minority shareholder of Empire Resorts Ltd for steering the company towards privatisation against minority shareholders’ interests, also denying all such allegations, and believe the merger litigation is without merit, and plans to defend against all claims stated therein.

The suit is also against Empire Resorts and its board members, as well as the company’s controlling shareholders — Genting Malaysia and Kien Huat Realty III.

Selangor Dredging Bhd’s proposed disposal of 16 pieces of freehold land in Damansara Heights for RM71 million has fallen through as the purchaser, Bukit Selesa Developmemnt Sdn Bhd, has yet to obtain approval from the relevant authority in regards to the development order. SDB Damansara received a letter from Bukit Selesa yesterday asking to terminate the agreement.

Avillion Bhd plans to raise up to RM22.67 million via a private placement up to 20% of its total number of issued shares to independent third party investors to be identified later, to help ease the group’s cash flow requirements by providing it with immediate funds for asset enhancement and refurbishment of the group's hotels and resorts. The money will alos be used to repay bank borrowings, for use as general working capital and to fund its property development project in Johor.

It also plans to undertake an issuance of up to 566.64 million free warrants on the basis of one warrant for every two shares held.