KUALA LUMPUR (Jan 18): Based on corporate announcements and news flow today, companies that may be in focus on Thursday (Jan 19) include Silk Holdings, Gadang Holdings, Genting, Mesiniaga, WCT Holdings, Axiata, Uzma, Guocoland, Spring Gallery, Country View, FSBM Holdings, Tex Cycle, Green Packet and Yen Global.
Silk Holdings Bhd's toll concession asset will be sold to Permodalan Nasional Bhd (PNB) for RM380 million in cash, both said in a joint statement today.
According to the press release, Silk Holdings has entered into a conditional share purchase agreement with PNB for the disposal of 100% of the issued and paid-up share capital of Sistem Lingkaran-Lebuhraya Kajang Sdn Bhd (SILK) for RM380 million.
In the press release, it said Silk Holdings intends to allocate up to RM200 million for future investments including enhancing and strengthening its existing offshore marine support services business and investment in related businesses in the oil and gas segment as well as other viable investment opportunities to be identified, up to RM70 million for distribution to Silk Holdings' shareholders, and RM110 million for general corporate and working capital and others.
The proposed disposal is expected to be completed by the first quarter of 2017, subject to all approvals being obtained and the fulfilment of several conditions, including the completion of due diligence.
Kwasa Land Sdn Bhd, the master developer of the Kwasa Damansara township here, has awarded the development rights of a 21.08-acre plot known as R3-1 within the new township to Gadang Holdings Bhd.
The proposed development, which has an estimated gross development value (GDV) of RM700 million, will feature 780 residential units comprising a combination of high-rise towers and villas.
Under the deal, Kwasa Land will receive RM165.5 million for the development rights and revenue sharing from Gadang.
Genting Bhd said its wholly-owned subsidiaries, Genting Overseas Holdings Ltd (GOHL) and GOHL Capital Ltd, have successfully priced a US$1 billion offering of guaranteed unsecured fixed rate notes, representing the group's landmark return to the international US dollar bond markets since 2004.
In a statement today, it said the notes will be fully guaranteed by GOHL, which wholly owns the issuer GOHL Capital and come with a keepwell deed with Genting.
The notes have been priced at 198 basis points over the 10-year US Treasury Note, at a price of 99.597 to yield 4.3%. The notes bear fixed interest of 4.25% per annum, with interest payable semi-annually in arrears and rank pari passu with all other unsecured and unsubordinated obligations of the issuer.
The group said the proceeds from the issuance will be used for general corporate purposes, including operating expenses, capital expenditure, investment, refinancing, working capital requirements, general funding requirements and for investments in other members of the group.
It said this may include investments for the development of the Resorts World Las Vegas project.
Information technology services provider Mesiniaga Bhd said it has won an RM20.73 million contract from Telekom Malaysia Bhd to design, supply and maintain a managed internet gateway service.
In a filing with Bursa Malaysia, Mesiniaga — backed by Permodalan Nasional Bhd with an 18.77% stake — said the contract is valid for eight years from Jan 1, 2017 to Dec 31, 2024.
WCT Holdings Bhd is proposing a placement of 125 million shares to raise about RM212.5 million, based on an indicative issue price of RM1.70 per share.
The group said it would allocate RM80 million to repay bank borrowings and RM130 million for working capital. The estimated expenses for the exercise is RM2.5 million.
Axiata Group Bhd says its wholly-owned telco tower management company, edotco Group Sdn Bhd, is now worth an equity value of close to US$1.5 billion (RM6.67 billion), following the definitive shareholder's agreement signed with Khazanah Nasional Bhd and Innovation Network Corp of Japan (INCJ).
He added that edotco will deploy the proceeds of the primary placement with the aim of accelerating the company's growth trajectory, thereby growing shareholder value further.
Meanwhile, edotco's valuation of US$1.5 billion, said Axiata, was pegged at 12.5 times enterprise value to FY2016 EBITDA, which was comparable to regional peers.
"The final portfolio takes into account the potential injection of tower assets in Cambodia and Sri Lanka at a later date with a resultant increase in Axiata's shareholding in edotco," the telco group said, adding that "the valuation was arrived (at) based on a competitive process which included several other international and domestic parties".
Uzma Bhd said today it will undertake the remaining fabrication, hook-up and commissioning works of the KNPG-B Topside PH II for the non-associated gas (NAG) development project located offshore Sabah, until its targeted completion in July this year.
This follows a novated contract signed between its wholly-owned subsidiary Uzma Engineering Sdn Bhd with THHE Fabricators Sdn Bhd and Petronas Carigali Sdn Bhd on Oct 24 last year.
In February 2014, TH Heavy Engineering Bhd (THHE) announced that its subsidiary THHE Fabricators had received a letter of award from Petronas Carigali to undertake procurement, construction and commissioning of the KNPG-B topside. Work on the contract was scheduled for completion in 18 months.
However, in April last year, THHE said THHE Fabricators had received a letter from Petronas Carigali stating that due to performance related issues pertaining to the execution of the Kinabalu project, THHE Fabricators will be excluded from participating in future Petronas Carigali tenders for two years.
Gain from one land sale has lifted Guocoland (M) Bhd’s net profit to RM110.8 million, or 16.54 sen per share, for the second financial quarter ended Dec 31, 2016.
To recap, Guocoland’s associate Vintage Heights Sdn Bhd completed the disposal of the 679.2 hectare piece of land worth RM474.99 million in Sepang, Selangor, to Putrajaya Properties Sdn Bhd on Dec 8 last year.
The profit is in contrast to a net loss of RM7.47 million, or 1.12 sen per share, in the previous corresponding financial quarter.
Its quarterly revenue grew 23.9% to RM44.63 million from RM36.01 million in the same period on the back of “higher contribution from the residential project in Damansara City, commercial projects in PJ City and Old Klang Road”, it said in a bourse filing.
Spring Gallery Bhd is making its maiden foray into the property development market through a joint venture (JV) with Hasil Senudong Sdn Bhd to develop a residential project in Kledang Utara, Perak.
The proposed development will feature two blocks of medium-end apartments on land measuring 3.3ha, with an estimated GDV of RM161.2 million.
Spring Gallery said it intends to venture into the property development business to provide another stream of revenue source to complement its existing construction business.
Under the JV agreement, Hasil Senudong will contribute the development land, as well as apply and obtain the approval for the conversion of the land within six months from the purpose of sport and recreation to residential building. Spring Gallery, meanwhile, will bear the entire cost of developing the project, estimated at RM106.35 million.
Spring Gallery has also agreed to pay a sum of RM17.5 million to Hasil Senudong as performance bond under the JV agreement.
Country View Bhd's net profit for its fourth quarter financial results for the period ended Nov 30, 2016 (4QFY16) rose 43.1% to RM9.24 million from RM6.5 million a year ago, due mainly to new sales combined with contributions from the sale of three-storey terrace houses in Taman Nusa Sentral, Johor, which were launched and sold in 4QFY16.
According to a filing with Bursa Malaysia today, the property developer's revenue for the quarter swelled 123% to RM52.2 million from RM23.4 million in 4QFY15 for the same reasons.
FSBM Holdings Bhd, a loss-making information technology service and systems provider, announced that it has fixed the price for its private placement shares at 20 sen apiece.
According to FSBM Holdings, the price represents the five-day weighted average market price of the counter from Jan 11 to Jan 17.
The bulk of the cash proceeds from this exercise, said FSBM Holdings, will be channelled to fund its business working capital and operating expenses.
The first tranche of the placement exercise was completed in end-December 2016, with 6.36 million shares issued, raising a total of RM1.27 million.
However, it is unclear how many shares FSBM Holdings plans to issue in the second tranche of the private placement exercise.
Assuming there are 6.3 million shares still to be issued, and with the 20 sen price, FSBM Holdings is expected to net some RM1.26 million.
Tex Cycle Technology (M) Bhd said that it may book an estimated potential liability of RM38.67 million in its balance sheet if FACT System Malaysia Sdn Bhd succeeds in its counterclaim against it.
In reply to a query by Bursa Malaysia, the environmental and waste management firm said there will however be no financial and operational impact to the group arising from the case.
Green Packet Bhd will subscribe to the proposed rights issues by Yen Global Bhd, for a total consideration of RM12.1 million, in its commitment to support the latter’s growth.
According to a filing with Bursa, Green Packet said it will subscribe in full for its entitlement under the proposed rights issue comprising 60.5 million rights shares together with 45.4 million warrants, at an issue price of 20 sen per rights share. It also said that it will not dispose of any Yen Global shares following the issuance of the rights share up to the entitlement date.
The subscription will be subject to the proposed subscription not giving rise to a mandatory general offer obligation, no change to the size and quantum of the proposed rights issue and minimum subscription level as well as the necessary approvals being obtained by Yen Global.
The subscription consideration will be satisfied entirely in cash and will be funded via internal funds.
http://www.theedgemarkets.com/my/article/silk-holdings-gadang-holdings-genting-mesiniaga-wct-holdings-axiata-uzma-guocoland-spring
