PPB, Revenue Group, Kossan, Reservoir Link, N2N Connect, Hibiscus Petroleum, Fajarbaru and Annum

PPB, Revenue Group, Kossan, Reservoir Link, N2N Connect, Hibiscus Petroleum, Fajarbaru and Annum

KUALA LUMPUR (March 3): Here is a brief recap of some corporate announcements that made news on Friday (March 3) involving PPB Group Bhd, Revenue Group Bhd, Kossan Rubber Industries Bhd, Reservoir Link Energy Bhd, N2N Connect Bhd, Hibiscus Petroleum Bhd, Fajarbaru Builder Group Bhd and Annum Bhd.

PPB Group Bhd sees an increase of between 30% and 38% in its utility cost, after the government removed electricity subsidies and raised the power tariff for medium- and high-voltage users to a surcharge of 20 sen per kWh from Jan 1. PPB managing director Lim Soon Huat said the group is improving its operational efficiency as the new electricity rate would have a “significant” impact. “It is not a small amount. Looking at our utilisation, it could impact us significantly. And looking at the numbers, it is between RM20 million and RM25 million (the increase in cost) across the group,” Lim said.

Two executive directors of Revenue Group Bhd, namely Ooi Guan Hoe and Lai Wei Keat, as well as independent and non-executive director Loo Jo Anne, have resigned from the board on Friday. The e-payment solutions provider cited health reasons for Ooi's resignation, while Lai and Loo stepped down due to personal reasons. The group is currently in a dispute with its co-founders Brian Ng Shih Chiow and Dino Ng Shih Fang, who were suspended in January after several complaints were lodged against them.

Abrdn plc (formerly known as Aberdeen Asset Management plc) has emerged as a substantial shareholder of Kossan Rubber Industries Bhd, after acquiring a 5.074% stake in the glove maker. Abrdn bought the stake, comprising 129.46 million shares, on Wednesday (March 1), making it Kossan Rubber's third-largest shareholder after Kossan Holdings (M) Sdn Bhd (48.77% stake) and the Employees Provident Fund (5.4%).

Energy-related services provider Reservoir Link Energy Bhd plans to diversify its business to include the provision of wastewater treatment services as well as the engineering, procurement, construction, and commissioning (EPCC) of wastewater treatment plants. It currently operates in the oil and gas, renewable energy, construction and healthcare sectors. In tandem with the new business ventures, it also revealed that it plans to raise RM27.75 million via a private placement, for use as development cost for a new wastewater treatment plant, to pursue renewable energy projects in Malaysia and Indonesia, and for working capital.

Integrated e-commerce securities trading solutions provider N2N Connect Bhd has called off its plan to transfer its listing from the ACE Market to the Main Market. The group, which had made the proposal in June 2020, said it has now decided to withdraw the application “after taking into consideration the continuing market volatility amid the expectation of softening in global growth”.

Hibiscus Petroleum Bhd said a Sarawak-based oil and gas services provider has initiated arbitration proceedings against its indirect wholly owned subsidiary Hibiscus Oil & Gas Malaysia Ltd over a RM36.57 million claim. The group said Oceancare Corporation Sdn Bhd (OCSB) has issued the arbitration notice over a dispute arising from a contract with Hibiscus Oil & Gas, as operator of relevant production sharing contracts. OCSB (formerly known as Repsol Oil & Gas Malaysia Ltd) is alleging, among other things, variation to the original scope of work, which Hibiscus Oil & Gas denies.

Fajarbaru Builder Group Bhd has won a RM310.54 million contract via a tender exercise from WCT Holdings Bhd to undertake the main building works for the residential condominium towers located in Mont Kiara, Kuala Lumpur. The main building works consist of three blocks of residential condominium towers comprising 341 units, together with four levels of basement car park and three levels of podium facilities. The tenure for the contract is 35 months, commencing from March 15, 2023 and slated for completion on Feb 14, 2026.

Annum Bhd has called off a collaboration agreement in relation to a RM62.25 million subcontract for the Sarawak Water Supply Grid Programme. Annum said its indirect wholly-owned subsidiary Annum EPCC Sdn Bhd was awarded the subcontract by the main contractor Saratech Sdn Bhd in August 2019. The job involves the supply and laying of pipelines from the Salim Water Treatment Plant, Sibu Water Board to Kanowit Sibu Division, as well as piling works and mechanical and electrical works.

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