Companies in the news - Econpile, KESM, WZ Satu, Damansara Realty, PanPages, Harn Len and Sona Petroleum

KUALA LUMPUR (June 2): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Friday, June 3) could include the following: Econpile, KESM, WZ Satu, Damansara Realty, PanPages, Harn Len and Sona Petroleum.

Econpile Holdings Bhd has bagged a RM208 million contract to undertake bored piling and pilecaps, diaphragm walls, earthworks, foundation and substructure works of a mixed commercial development at Jalan Ampang here.

Econpile said its wholly-owned subsidiary Econpile (M) Sdn Bhd has received a letter of award dated May 31 from Oxley Rising Sdn Bhd for the proposed project, which features hotels, branded residences, offices and retail units.

The overall duration of the contract is 26 months.

KESM Industries Bhd's net profit for the third quarter ended April 30, 2016 (3QFY16) jumped more than fourfold to RM7.57 million or 17.6 sen per share, driven by higher sales from electronic manufacturing services.

It posted a net profit of RM1.73 million or four sen per share in the corresponding quarter of the preceding year.

Revenue for the quarter gained 12.5% to RM70.77 million from RM62.93 million a year earlier, due to higher demand for all services.

The group recorded higher changes in work-in-progress and finished goods of RM1.34 million, as compared with a deficit of RM138,000 a year ago.

WZ Satu Bhd has been awarded two contracts worth RM65.37 million from international oil and gas service provider Petrofac Ltd, which it said would contribute to its earnings for up to the financial year ending Aug 31, 2017 (FY17).

WZ Satu said its wholly-owned subsidiary Misi Setia Oil & Gas Sdn Bhd had received a letter of award from Petrofac E&C Sdn Bhd today, as part of a package related to the Petronas Refinery and Petrochemical Integrated Development (RAPID) project.

The announcement came fresh after the company proposed the acquisition of the SILK Highway.

WZ Satu said the Petrofac contract, with a 16-month duration, entails works to install pipes, fittings, pre-fabricated pipe spools, valves and in-line instrument valves for Petronas' Rapid Project Package 4 Refinery & Crackers Sdn Bhd.

Damansara Realty Bhd today announced a redeemable convertible notes issue to raise up to RM150 million for working capital and to fund its property development business.

The company said the notes will be issued in four tranches, with a principal amount of RM20 million for the first tranche, RM30 million for the second tranche and RM50 million each for the third and fourth tranches.

"The notes are convertible at the option of the holders into new shares in Damansara Realty of 50 sen each at the conversion terms and are redeemable before or upon maturity date in cash, subject to the terms and conditions," it added in its bourse filing.

PanPages Bhd plans a tie-up with an Indonesian firm to accelerate its penetration in Indonesia's information technology sector.

In a filing with Bursa Malaysia, PanPages said its unit PanPages Ltd has inked a memorandum of understanding (MoU) with PT Anugerah Tri Lestari yesterday, which will see the latter take up a 60% stake in its Indonesia subsidiary, PT PanPages.

The deal is for the purpose of developing a digital ecosystem for Indonesia's small and medium enterprises to develop their online presence and utilise the tools of internet technology, it said.

According to the group, the rationale for entering into the MoU is to accelerate the group market penetration in Indonesia, through a joint venture.

Johor-based plantation company Harn Len Corp Bhd gets a seven-year management agreement (MA) from Advance Pinnacle Sdn Bhd to manage, harvest and maintain oil palms in Serian, Sarawak.

According to its bourse filing, Harn Len said its unit Harn Len Management Sdn Bhd had yesterday entered into a MA with Advance Pinnacle for undertaking the above duties.

The properties to be managed measure approximately 2,369 acres in total.

Advance Pinnacle is principally engaged in the business of operating oil palm plantation. Advance Pinnacle is a wholly-owned subsidiary of LNH Enterprise Sdn Bhd, in which directors and major shareholders of Harn Len and persons connected to them have an interest.

Under the agreement, Harn Len Management will be entitled to 50% of the operating profits generated from the business activity during the term.

"Where there are no operating profits gained during the term of this agreement, each party will bear 50% of the loss suffered," it added.

Citing a study conducted by Tropicrop Agriculture Services Sdn Bhd dated Jan 6, the operating profit forecast for the transaction is approximately RM14.97 million, assuming fresh fruit bunches price at RM440 per metric tonnes.

Sona Petroleum Bhd has received letters from Santos Offshore Pty Ltd and Quadrant Northwest Pty Ltd in relation to the termination of the US$25 million (about RM104 million) sale and purchase agreement (SPA) for the Stag oilfield assets.

The special purpose acquisition company had earlier proposed to buy a 100% stake in the Stag oilfield located offshore Western Australia from Santos and Quadrant as its qualifying acquisition. However, Sona's shareholders had rejected the proposed acquisition at the company's extraordinary general meeting held on April 26.

In a filing with Bursa Malaysia today, Sona said the company has received the letters from Santos and Quadrant that the SPA is terminated with immediate effect.

"Accordingly, the SPA in relation to the proposed acquisition is terminated with effect from June 2, 2016," it added.