The Abu Dhabi branch of Zelan Holdings (M) Sdn Bhd (ZHSB), which is a wholly-owned subsidiary of Zelan Bhd, has received two notices of demand from Meena Holdings LLC for a combined AED92.53 million (RM108 million).
Meena Holdings owns the Meena Plaza mixed-use development project in Abu Dhabi, the United Arab Emirates (UAE).
In a filing with Bursa Malaysia, Zelan said ZHSB had received the notifications from HSBC Bank Middle East Ltd informing it that the bank had on Dec 17 received two notices of demand from Meena Holdings.
The notices are in respect of two guarantees issued by the bank on Aug 28, 2014, amounting to AED40.98 million and AED51.55 million, respectively.
To recap, Zelan had on Sept 17 issued a notice to Meena Holdings to terminate a contract for a package of works for the Meena Plaza project, which was first inked on April 1, 2008.
Zelan said Meena Holdings had failed to pay it AED27.6 million (RM32.19 million) of completed work and materials at site.
The firm added that it had also terminated the contract due to continuous interference with the valuation and certification of ZHSB's progress claims.
Hong Leong Bank Bhd (HLB)'s rights issue, which is targeted to raise gross proceeds of RM2.99 billion, is oversubscribed by 19.1%, according to the group's filing to Bursa Malaysia.
HLB, which is 64.4%-owned by Hong Leong Financial Group Bhd ( Valuation: 2.55, Fundamental: 2.20) had offered a total of 286.4 million new shares in HLB at RM10.40 per rights share on the basis of four rights shares for every 25 existing HLB shares held by entitled shareholders.
HLB said, as at the close of acceptance on Monday (Dec 14), it received applications for 342.79 million shares representing an oversubscription of 19.1%.
The rights shares are expected to be listed on the Main Market of Bursa Malaysia on Dec 28.
RAM Ratings Services Bhd has upgraded the long-term rating of RHB Capital Bhd (RHBCap)’s RM1.1 billion commercial papers/medium term notes (CP/MTN) programme to AA3 from A1.
Concurrently, RAM Ratings has reaffirmed the CP/MTN's short-term P1 rating while revising the outlook to stable from positive.
RAM Ratings said the revision was premised on the banking group's double-leverage and gearing levels, which stood at 1.35 times and 0.36 times, respectively, as at end-September 2015.
"The rating is also underscored by the still-healthy credit fundamentals of RHBCap's core subsidiaries, which are rated AA2," it said, adding it has taken into account the effect of RHBCap's ongoing internal reorganisation.
RAM Ratings expects RHBCap's key operations to remain intact and envisages its capital position to stay healthy, supported by its upcoming rights issue.
The ratings agency noted RHBCap has adopted a conservative stance on growth, which decelerated markedly for the nine months of financial year 2015 (9MFY15), given the more challenging operating environment.
Brahim's Holdings Bhd ( Valuation: 0.30, Fundamental: 0.35) has entered into a conditional share sale agreement to dispose of 49% of its equity stake in Brahim's Airline Catering Holdings Sdn Bhd (BACH) to SATS Investments Pte Ltd for a cash consideration of up to RM218 million.
In a filing with Bursa Malaysia today, Brahim's Holdings said that it will be paid RM110 million upon the completion of the proposed disposal, while the remaining RM108 million will be paid upon achieving certain financial targets.
The 49% equity stake in BACH represents 490,000 shares of RM1 each.
BACH is Brahim's Holdings' investment holding company that owns 70% in Brahim's Airline Catering Sdn Bhd (BAC) and provides in-flight catering and cabin handling. The remaining 30% interest in BAC is held by Malaysia Airlines Bhd.
Upon completion of the disposal, Brahim's Holdings will hold a 51% stake in BACH.
The group said that the disposal consideration of up to RM218 million is justifiable as it represents a premium of 68.17% over the cost of its investment for a 49% equity interest in BACH, of approximately RM129.63 million.
Berjaya Sports Toto Bhd (BToto) saw its net profit fall 29.1% to RM70.65 million or 5.27 sen per share for the second financial quarter ended Oct 31, 2015 (2QFY16) from RM99.67 million or 7.39 sen per share a year ago, mainly due to lower contribution from its principal subsidiary Sports Toto Malaysia Sdn Bhd.
In a filing with Bursa Malaysia today, the number forecast operator (NFO) said Sports Toto's pre-tax profit for 2QFY16 was reduced by 25.4% mainly due to the goods and services tax (GST) being absorbed, coupled with the lower prize payout in 2QFY15.
However, BToto's revenue for 2QFY16 came in 15.2% higher at RM1.44 billion from RM1.25 billion in 2QFY15 due to higher contribution from H.R. Owen Plc, Sports Toto and Philippine Gaming Management Corp.
Despite lower earnings, BToto declared a second interim dividend of five sen, amounting to RM67.5 million, payable on Feb 3, 2016. This brings its total dividend for the year to 10 sen per share.
For the cumulative six-month period (1HFY16), BToto's net profit fell 19.6% to RM143.12 million or 10.66 sen per share from RM178.03 million or 13.21 sen per share in 1HFY15, while revenue grew 11.7% year-on-year to RM2.78 billion from RM2.49 billion.
Key Alliance Group Bhd (KAG) has fixed the issue price for the placement of 58.08 million shares at five sen per placement share, which should raise some RM2.9 million for the group, according to its Bursa Malaysia filing.
“The issue price represents a premium of approximately 0.0094 sen or 23.15% over the five-day volume weighted average market price of the KAG shares up to and including Dec 17, 2015, being the last market day immediately preceding the price-fixing date of 0.0406 sen per KAG Share,” it said.
The ACE Market-listed KAG had initially proposed the private placement of up to 87.12 million new ordinary shares on Feb 25, 2014, representing up to 10% of its enlarged issued and paid-up share capital of RM87.12 million. The company then obtained two extensions from Bursa Malaysia for the implementation of the exercise; the last extension it was granted was up till March 19 next year.
The placement shares are expected to raise gross proceeds of up to RM8.71 million for the use of computer hardware purchase, data centre operations, and expenses related to the private placement activities.
Wah Seong Corp Bhd ( Valuation: 2.00, Fundamental: 0.65) has proposed to dispose of 25% of its stake in WDG Resources Sdn Bhd (formerly known as Advanced Piping Systems Sdn Bhd) for RM200,000 in cash to Epilog Tegap Sdn Bhd as part of WDG's expansion plan.
In a filing with Bursa Malaysia, it was revealed that Spirolite (M) Sdn Bhd, an indirect wholly-owned subsidiary of Wah Seong, has entered into a share sale agreement with Epilog, in which the latter will acquire 200,000 shares, representing 25% of the equity interest in WDG for RM200,000.
The remaining 600,000 shares, or a 75% stake in WDG, will be taken up by Syn Tai Hung Trading Sdn Bhd, an indirect wholly-owned subsidiary of Wah Seong, for a total cash consideration of RM600,000.
WDG was previously involved in the business of manufacturing and trading of straight pipes and fittings, but had ceased such operations in year 2012 and has remained dormant to date.
Berjaya Assets Bhd (BAssets) has acquired the entire 20% stake in its subsidiary Berjaya Times Square Sdn Bhd (BTS) held by Johor Sultan Ibrahim Ismail Ibni Almarhum Sultan Mahmud Iskandar Al-Haj for RM250 million or RM1.67 per share, enabling BAssets to regain total control over BTS.
In a filing with Bursa Malaysia, BAssets said it has signed a share sale agreement with Sultan Ibrahim for the acquisition. Following this, BTS is now a wholly-owned subsidiary of BAssets.
It said Sultan Ibrahim had offered to dispose of his stake comprising 150 million shares in BTS to BAssets at the same consideration when he acquired the BTS shares in 2013.
The cash consideration for the acquisition was funded entirely through borrowings, BAssets said, adding that its gearing has increased from 0.28 times to 0.42 times.
Ajinomoto (M) Bhd ( Valuation: 1.40, Fundamental: 2.80) whose share price rose as much as RM1.99 or 27.22% over the past week, said it is not aware of any factor that may have contributed to its unusual trading activity (UMA).
In a reply to Bursa Malaysia's UMA query, the monosodium glutamate (MSG) manufacturer said it is not aware of any corporate development in relation to the group's business and affairs that has not been previously announced.
The uptrend trajectory began on Dec 10, which saw its share price surge to its all-time high of RM9.30 on Wednesday (Dec 16) from RM7.31 then.
Year to date, the counter has risen RM3.30 or 60%, outperforming FBM KLCI's 6.42% decline.
My E.G. Services Bhd ( Valuation: 1.10, Fundamental: 2.30) (MyEG)’s shareholders have approved the e-government services provider's proposed one-on-one bonus issue of up to 1.2 billion new shares to reward its shareholders today.
Without disclosing how many shareholders gave their consent to the bonus issue, MyEG said all resolutions being tabled in the annual general meeting and extraordinary general meeting today were carried.
When asked to comment on the group's performance for the financial year ending June 30, 2016 (FY16), its executive chairman Datuk Dr Norraesah Mohamad said: "Everything is good and the company is growing as we are expanding our businesses." She declined to elaborate on the matter.
Kenanga Research had earlier forecast MyEG to register a two-year net profit and compound annual growth rate (CAGR) of 49%, bringing its net profit to RM113.9 million in FY16 from RM50.7 million in FY14.
"Our forecast assumptions are mainly underpinned by a conservative two-year revenue CAGR of 20% in its JPJ (Road Transport Department) services, growth of 15% in market share of immigration in FY16 and CSTM (Customs Service Tax Monitoring) revenue contribution of RM25 million in FY15 and RM50 million in FY16," the firm added.
The group targets to complete the exercise by the first quarter of 2016.
Companies in the news - Zelan, Hong Leong Bank, RHBCap, Brahim’s, BToto, Wah Seong, BAssets, Ajinomoto, MyEG
http://www.theedgemarkets.com/my/article/zelan-hong-leong-bank-rhbcap-brahim’s-btoto-wah-seong-bassets-ajinomoto-myeg
