KUALA LUMPUR (March 29): Here is a brief recap of some corporate announcements that made news on Wednesday (March 29): Tenaga Nasional Bhd, Petronas Dagangan Bhd, Sime Darby Bhd, Kim Loong Resources Bhd, Tanco Holdings Bhd, MKH Bhd, Coraza Integrated Technology Bhd, Classic Scenic Bhd, YBS International Bhd and Bintai Kinden Group.
Tenaga Nasional Bhd (TNB)’s wholly-owned subsidiary TNB Power Generation Sdn Bhd (TNB Genco) has issued RM2 billion in sustainability sukuk wakalah to fund the development of the Nenggiri Hydroelectric Power Plant project in Kelantan. The issuance — upsized from the initial RM1.5 billion — was the second under its 30-year Sukuk Wakalah Programme of up to RM10 billion nominal value.
Petronas Dagangan Bhd (PetDag) has lodged to the Securities Commission of Malaysia the relevant documents for its Islamic Medium Term Notes (IMTN) and Islamic Commercial Papers (ICP) programmes of up to RM10 billion. The ICP will have a tenure of seven years from the date of first issuance. The tenure of each ICP will be between one month and 12 months. Meanwhile, the IMTN will have a perpetual tenure. Each IMTN may be issued with a tenure of at least one year from the date of the issuance.
Diversified conglomerate Sime Darby Bhd reiterated that it has not made a decision to divest its joint venture with Australia’s Ramsay Health Care Ltd.
“However, Sime Darby continuously evaluates corporate opportunities to enhance value for its shareholders,” the group said in a filing, adding that it will make necessary announcements when there is a definite corporate proposal. Sime Darby’s filing was in response to a Reuters report that the JV partners plan to revive the sale of Ramsay Sime Darby Health Care Sdn Bhd.
Kim Loong Resources Bhd, which posted a record high profit and revenue for the financial year ended Jan 31, 2023 (FY2023) on higher crude palm oil prices, expects CPO prices to stay above RM4,000 per tonne in FY2024. In FY2023, the average CPO prices stood at RM4,898 per tonne, about 9% higher than RM4,488 in FY2022. The group's net profit rose 19.02% to an all-time high of RM162.56 million in FY2023 from RM136.58 million a year earlier, as revenue increased 12.08% to a record RM1.91 billion from RM1.7 billion. For the fourth quarter, net profit rose 19.24% to RM36.92 million from RM30.96 million in 4QFY2022, supported by better performance from its milling operations due to better processing margin and higher processing volume. Quarterly revenue, however, dropped 13.05% to RM431.82 million from RM496.63 million, dragged by lower average FFB and CPO selling prices.
Tanco Holdings Bhd indirect unit Palm Springs Development Sdn Bhd (PSD) has appointed sister company Gplex Realty Sdn Bhd (GRSB) to market the remaining available and unsold units of the Splash Park Suites project in Port Dickson in a related party transaction (RPT). Splash Park Suites comprises 413 units in its first tower, construction of which is almost completed although 119 units are still unsold. The deal is deemed an RPT as Tanco’s group managing director Datuk Seri Andrew Tan Jun Suan is an indirect major shareholder of Tanco as well as an indirect major shareholder in GRSB.
Property developer MKH Bhd plans to list its oil palm plantation arm MKH Oil Palm (East Kalimantan) Bhd (MKHOP) on the Main Market of Bursa Malaysia by the fourth quarter of 2023. MKH proposes to undertake an initial public offering (IPO) of 24.5% of MKHOP’s enlarged share capital, after completing a slew of pre-listing corporate exercises. Prior to the IPO, MKHOP is to undertake a one-to-six share split which would result in the unit’s share base expanding from 110.47 million shares to 662.81 million shares, with a maintained issued share capital of 110.47 million.
ACE Market-listed Coraza Integrated Technology Bhd has planned a private placement of up to 20% of its share base to raise an estimated RM69.54 million, mainly to fund the purchase of new machinery. The placement will comprise the issuance of up to 85.85 million shares to independent third parties to be identified, at an issue price to be determined, said the precision machining and electromechanical assembly services provider. The estimated amount to be raised is based on an indicative price of 81 sen apiece, which represents a discount of 9.5% to the five-day volume weighted average market price up to March 28 of 89.53 sen per share.
Classic Scenic Bhd announced an interim dividend of 5.5 sen per share for the financial year ended Dec 31, 2023, to be paid on April 28. Classic Scenic — a wooden picture frame moulding and timber products manufacturer — has not paid dividends for the last two years, with the last interim dividend of three sen paid in its financial year 2020.
YBS International Bhd is exploring a collaboration with Enovix Corp to develop the former's existing facility at the Penang Science Park as Enovix's new 3D lithium ion silicon battery assembly plant in Southeast Asia. YBS said Enovix accepted its non-binding letter of interest for the collaboration on March 29. The final decision on the project is subject to YBS’ due diligence, further evaluation and determination of various commercial, legal and regulatory and financial factors, it added.
Bintai Kinden Corp Bhd said it has been classified as a Practice Note 17 (PN17) issuer after its subsidiary defaulted on RM109 million worth of financing facilities. This came after MBSB Bank Bhd terminated Bintai Kinden's role as the corporate guarantor for the RM109 million Islamic banking facilities granted to the group’s wholly-owned unit Optimal Property Management Sdn Bhd. As at end-Dec 2022, current borrowings stood at RM32.77 million, while non-current borrowings stood at RM102.33 million. Meanwhile, total current assets stood at RM127.13 million, and non-current assets were at RM282.03 million.