Leading resort and hospitality operator Genting Malaysia Bhd (GenM) said it is close to clinching a deal to manage a resort casino in Taunton, Massachusetts, the US.
It told the stock exchange that its appointment as a manager of First Light Resort & Casino is currently pending the approval from the National Indian Gaming Commission.
Once approved, the appointment will be for seven years commencing from the opening of the property, which is currently under construction by the Mashpee Wampanoag Tribe.
"The project, once it is completed, is expected to be a destination resort casino with fully integrated casino, hotel, entertainment, restaurants and retail components," said GenM.
GenM said it has to date invested US$249.5 million in interest bearing promissory notes issued by the Mashpee Wampanoag Tribal Gaming Authority for the initial development phase of the project.
"Though GenM Group does not have any equity interest in the project or the tribe, which is sovereign, the investment in notes allows the group to enhance the returns expected from its involvement in the project," it added.
GenM also said its foray into the gaming industry in Massachusetts will complement and further establish the group's growing presence in the US, where it already has operations and developments in the states of New York and Florida.
Sumatec Resources Bhd has secured an overseas project financing facility totalling US$125 million (RM484.43 million) to fund the operations of its Rakushechnoye Oil and Gas Field, also known as Shelly field, and the acquisition of oil and gas assets.
The oil and gas outfit told the local stock exchange that the financial facility was granted by Export-Import Bank of Malaysia Bhd to the company, and will be used as working capital, and capital expenditure for the above oil field.
The oil field is located on the Mangyshlak Peninsula in the south-western Manghystau province, around 15km from the Caspian Sea.
Sumatec said the utilisation of funds from the facility is expected to have a positive effect on the future earnings of the Sumatec group, despite noting that it will also increase the group's gearing level.
For illustrative purposes, Sumatec said based on the audited consolidated financial statements of the company for the financial year ended Dec 31, 2014 (FY14), the facility is expected to increase its gearing to 0.86 times from 0.04 times.
Sunway Construction Group Bhd (SunCon), which confirmed the award of a contract from Mass Rapid Transit Corp Sdn Bhd (MRT Corp), said its outstanding order book now stands at RM4.8 billion.
Earlier this week, MRT Corp had announced that it has awarded Package V201 for the MRT Sungai Buloh-Serdang-Putrajaya (MRT 2) line project, which involves building a viaduct guideway and other associated works under the MRT 2 project, to SunCon for a total value of RM1.21 billion.
Today, it said its wholly-owned subsidiary Sunway Construction Sdn Bhd has accepted the letter of award for the above jobs.
"The project is expected to contribute positively to the earnings of SunCon Group from the financial year ending Dec 31, 2016 onwards," said SunCon.
"The duration for the contract will be 60 months from the date for possession of the project site," it added.
AirAsia Bhd has entered into a share subscription agreement with its founders Tan Sri Tony Fernandes and Datuk Kamarudin Meranun to raise RM1.01 billion.
The budget airline said it has entered into a conditional subscription agreement with Fernandes and Kamarudin through Tune Live Sdn Bhd, to issue and subscribe 559 million new shares in AirAsia at RM1.84 per share in order to raise RM1.01 billion, its bourse filing read.
The issue price represents a 0.6% premium to the airline's last closing price of RM1.83 and a 31.4% premium to the 12-month volume weighted average price of RM1.41 per share.
Tune Live, which is currently dormant, is equally-owned by Fernandes and Kamarudin. Upon completion of the proposed shares issuance, Tune Live will hold 15.7% of the enlarged issued capital of AirAsia.
As at March 28, Fernandes and Kamarudin hold directly and indirectly, a total of 18.9% shareholding in AirAsia. The duo hold a combined 18.87% stake in AirAsia via another private vehicle named Tune Air Sdn Bhd.
Post the proposed shares issuance, Fernandes and Kamarudin will hold a 32.5% stake in AirAsia, just slightly under the 33% threshold to make a mandatory general offer to the airline's minority shareholders.
AirAsia said it will use the raised proceeds to reduce its gearing from 2.79 times now to 2.22 times post the proposed shares issuance, for financing of aircraft, engines and parts, pre-delivery payments of aircraft, general corporate and working capital, and the expenditures related to the exercise. About 10.3% or RM103.82 million of the funds will be used to partially fund the construction of its new headquarters at klia2, which is scheduled to be completed this year.
AirAsia will convene an extraordinary general meeting to seek the approval of its non-interested shareholders for the proposed shares issuance.
Tan Chong Motor Holdings Bhd may also be in focus following the announced increase in the selling prices for selected Nissan models by 2.8% to 6.7%, effective today.
In a statement, Edaran Tan Chong Motor Sdn Bhd (ETCM), the sole distributor of Nissan vehicles in Malaysia, said the decision to increase prices was mainly due to the weakened ringgit which has severely impacted its overall operational costs.
The four CKD models that will see a price increase are Almera, Grand Livina, X-Gear and Teana, while prices of Serena S-Hybrid, X-Trail, NP300 Navara and NV200 will remain unchanged.
"Over the past months despite severe pressure from a weakened ringgit, ETCM has implemented necessary measures to reduce the impact. However, due to the prolonged unfavourable foreign exchange and the persistent pressure of higher operating costs, selected models will have a price increase," ETCM executive director Datuk Dr Ang Bon Beng said in the statement.
ETCM said it has continuously sought and reviewed opportunities to hold the current prices of Nissan vehicles in the interest of its customers, and in fact it is one of the last automotive companies to increase its prices.
Scomi Engineering Bhd's unit Scomi Transit Projects Sdn Bhd has withdrawn its legal suit and injunction against Prasarana Malaysia Bhd over a decision to terminate the RM494 million KL Monorail expansion contract, after the latter admitted that its two earlier notices were defective.
In a filing with Bursa Malaysia today, Scomi Engineering said Prasarana gave an undertaking to the Kuala Lumpur High Court that they would not be relying on their two notices dated Jan 4 and Feb 18 to terminate the KL Monorail expansion contract, thereby admitting that the two notices were defective.
"Accordingly, the legal suit and injunction were withdrawn without prejudice to Scomi Transit Projects' rights to commence other legal actions or to apply for another injunction or other relief against Prasarana whether in relation to Prasarana's notice dated March 8, the KL Monorail expansion contract and/or the KL Monorail fleet expansion project or otherwise," it said.
After announcing yesterday that it was teaming up with Japanese-based Kokubu Group Corp to venture into food logistics, Texchem Resources Bhd is now partnering two Myanmar-based companies to go into the procurement and marketing of marine products such as soft shell crabs, prawns and hamaguri, the common orient clams, in Myanmar.
In a filing with Bursa today, Texchem said its unit Texchem Food Sdn Bhd has inked a joint venture agreement (JVA) with E-Sprint Co Ltd and Mascot Industries Co Ltd to implement an investment plan through Texchem Marine Labutta Ltd for the said purpose.
Texchem Marine Labutta is a private company with a principal activity of processing and marketing of marine products like the ones mentioned above.
E-Sprint and Mascot are both private companies incorporated in Myanmar. E-Sprint is an investment holding company while Mascot is engaged in the business of production and exportation of frozen and dried seafood, such as prawns, soft shell crabs, spanner crabs, squids and fishes.
Upon signing of the JVA, Texchem said Texchem Food will hold a 65% stake in Texchem Marine Labutta, and E-Sprint will control 30%, while Mascot will have 5% in the company.
Texchem's investment in Marine Labutta will be satisfied in cash and financed by Texchem Food's internally generated funds.
http://www.theedgemarkets.com/my/article/genm-sumatec-suncon-airasia-tan-chong-scomi-engineering-and-texchem
