22 June 2017 - Construction company Protasco Bhd had seen series of
losses which diluted shareholders interest through sophisticated
accounting treatments, and abnormal contract arrangements. Latest
example is the lost of controlling interest in subsidiary KPS-HCM Sdn
Bhd in 7 days after being award some RM174.4 million jobs.
According to 15 June 2017 Bursa Malaysia announcement, Protasco Bhd
quote "The Company is pleased to announce that its subsidiary, KPS-HCM
Sdn. Bhd. has been awarded by Central Spectrum (M) Sdn. Bhd., a
subsidiary of Kumpulan Hartanah Selangor Berhad, the proposed
infrastructure works for the development of Phase 3C, Lot 74079, Pulau
Indah Industrial Park, Pulau Indah, Mukim Klang, Daerah Klang, Selangor
(“Works”), for a total contract sum of approximately RM174.4 million.
The Works are to be completed within 18 months commencing from 5 July
2017 to 5 January 2019 and are expected to contribute positively to
the earnings of the Protasco Group for the financial year ending 31
December 2017. "
KPS-HCM Sdn. Bhd. was a 70% subsidiary of Protasco Bhd.
However, on 21 June 2017 Bursa Malaysia announcement, the company
further quoted "Protasco Bhd wishes to announce that its wholly-owned
subsidiary, HCM Engineering Sdn Bhd (“HCM”) had on 21 June 2017 entered
into a Subscription Agreement with Kumpulan Perangsang Selangor Berhad
(“KPS”) for the subscription of 1,715,000 ordinary shares by KPS in
KPS-HCM Sdn Bhd (“KPS-HCM”) for the total cash consideration of
RM1,715,000 (“Subscription”).
The Subscription will result in HCM diluting its shareholdings in
KPS-HCM from 70% to 49% and therefore ceased to be an indirect
subsidiary of Protasco."
Market was spooked and felt cheated with such fundamentally filled
decisions, where a contract was just awarded was divested in just 7 days
later for a considerable low price of RM1,715,000 token paid by
Kumpulan Perangsang Selangor Berhad ("KPS"). Is Protasco Bhd cash flow
in such critical condition, where they need to divest majority of a
subsidiary to raise less than RM2 million?
According to the company announcement, KPS-HCM was initially
incorporated as a joint venture to secure and undertake a 7-years
contract for state road maintenance awarded by the Selangor State
Government. Moving forward, the shareholders of KPS-HCM intend to
broaden the scope of its business activities to include general civil
engineering works, building construction and maintenance in addition to
the construction, maintenance, refurbishment and rehabilitation of
roads.
The Subscription will enable KPS to take majority control and enabling
KPS-HCM to become a subsidiary of a state-owned corporation. With the
Subscription, it is envisage that KPS-HCM would have strong growth
opportunities and business sustainability which would have positive
impact on Protasco’s future earnings albeit non- consolidation of
KPS-HCM’s result.
In short, the company is divesting the subsidiary for a song.
Despite recent entry of EPF, MD Chong Ket Pen continues to purchase the
company shares. Investors general remain sideline and are looking for
clearer signals if there are anymore surprises from Protasco Bhd.
FinNews
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5461765
OTHERS LETTER OF AWARD FOR INFRASTRUCTURE WORKS
| PROTASCO BERHAD |
| Type | Announcement |
| Subject | OTHERS |
| Description |
LETTER OF AWARD FOR INFRASTRUCTURE WORKS |
|
The Company (“Protasco”) is pleased to
announce that its subsidiary, KPS-HCM Sdn. Bhd. has been awarded by
Central Spectrum (M) Sdn. Bhd., a subsidiary of Kumpulan Hartanah
Selangor Berhad, the proposed infrastructure works for the development
of Phase 3C, Lot 74079, Pulau Indah Industrial Park, Pulau Indah, Mukim
Klang, Daerah Klang, Selangor (“Works”), for a total contract sum of
approximately RM174.4 million.
The Works are to be completed within 18 months
commencing from 5 July 2017 to 5 January 2019 and are expected to
contribute positively to the earnings of the Protasco Group for the
financial year ending 31 December 2017.
None of the Directors, major shareholders of
Protasco or person connected with them have any interests, direct or
indirect, in the award of the Works.
|
|
Announcement Info
| Company Name | PROTASCO BERHAD |
| Stock Name | PRTASCO |
| Date Announced | 15 Jun 2017 |
| Category | General Announcement for PLC |
| Reference Number |
GA1-15062017-00055 |
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5466521
OTHERS SUBSCRIPTION OF ADDITIONAL SHARES IN KPS-HCM SDN BHD BY KUMPULAN PERANGSANG SELANGOR BERHAD
| PROTASCO BERHAD |
| Type | Announcement |
| Subject | OTHERS |
| Description |
SUBSCRIPTION OF ADDITIONAL SHARES IN KPS-HCM SDN BHD BY KUMPULAN PERANGSANG SELANGOR BERHAD |
|
Protasco Berhad (“Protasco”) wishes to
announce that its wholly-owned subsidiary, HCM Engineering Sdn Bhd
(“HCM”) had on 21 June 2017 entered into a Subscription Agreement with
Kumpulan Perangsang Selangor Berhad (“KPS”) for the subscription of
1,715,000 ordinary shares by KPS in KPS-HCM Sdn Bhd (“KPS-HCM”) for the
total cash consideration of RM1,715,000 (“Subscription”).
The Subscription will result in HCM diluting
its shareholdings in KPS-HCM from 70% to 49% and therefore ceased to be
an indirect subsidiary of Protasco.
The detailed announcement is attached herewith.
|
|
Please refer attachment below.
Announcement Info
| Company Name | PROTASCO BERHAD |
| Stock Name | PRTASCO |
| Date Announced | 21 Jun 2017 |
| Category | General Announcement for PLC |
| Reference Number |
GA1-21062017-00012 |
