Companies in the news - Hap Seng Consolidated, MSC, Sapura Resources, Tien Wah, Hiap Teck Venture, Rex Industry and Kossan Rubber

KUALA LUMPUR (June 15): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Thursday, June 16) could include: Hap Seng Consolidated, Malaysia Smelting Corporation (MSC), Sapura Resources, Tien Wah, Hiap Teck Venture, Rex Industry and Kossan.

Hap Seng Consolidated Bhd is planning a mixed development with a preliminary gross development value (GDV) of RM9.3 billion in Kuala Selangor, which will be developed over a 15-year period.

The diversified group announced this in its announcement to the stock exchange today on its acquisition of 36 parcels of freehold agriculture land from two vendors, with an aggregate land size of 1,449.52 acres for RM228.75 million. 

Hap Seng will acquire 20 parcels of freehold agriculture land with an aggregate land size of 734.82 acres from Shalimar (Malay) PLC for RM121.54 million or RM165 per acre.

From the second vendor Indo Malay PLC, it will acquire 16 parcels of freehold agriculture land with an aggregate land size of 714.7 acres from Indo Malay PLC for RM107.21 million or RM150 per acre.

Barring unforeseen circumstances, Hap Seng Consolidated expects the purchase to be completed in the third quarter of 2016. 

Malaysia Smelting Corporation Bhd (MSC) is acquiring three parcels of land at Pulau Indah Industrial Park, Westport — along with plant and machinery on the properties — for RM50 million cash.

The integrated tin mining and smelting group told the stock exchange that its unit, M Smelt (C) Sdn Bhd, is buying the properties from Metal Reclamation (Industries) Sdn Bhd.

It is paying RM32.5 million for the three plots of leasehold land with aggregate land size of 48,753 square metres and the buildings built thereon; and RM17.5 million for the plant and machinery.

MSC said the acquisition will present the company with opportunity to execute its business plan, whilst the new manufacturing facilities can also cater to its long term business plan.  

Sapura Resources Bhd will channel proceeds from the sale of its education assets, amounting to RM246.99 million, towards its RM1.5 billion property project along Jalan Kia Peng in the Kuala Lumpur City Centre.

Sapura Resources managing director Datuk Shahriman Shamsuddin said the group has a joint venture (JV) with KLCC Holdings Sdn Bhd to build a 52-storey tower, attached to the convention centre.

"The GDV (gross development value) is approximately RM1.5 billion. We own 50% of the JV," Shahriman told reporters, after Sapura Resources' annual general meeting and EGM.

Tien Wah Press Holdings Bhd, which has aborted its RM6 million acquisition plan to buy an existing facility in Jafza, United Arab Emirates, will be acquiring a factory cum office building that costs twice more.

"After further deliberation, the Board has decided not to carry on with its plans for the Existing Facility," it told stock exchange in a filing today.

Instead, the rotogravure printing and photolithography printing specialist said it bought a factory cum office building with a total build-up area of 3,799-sq metres from an unspecified vendor on May 19, for AED11 million (RM12.22 million).

"Upon completion of the SPA, our unit Alliance Print Technologies FZE (APTF) will enter into a land lease agreement with Jebel Ali Free Zone FZE for the lease of a piece of 6,404 sq m land in Jafza, on which the Dubai Facility is erected on," it added.

It targets the acquisition of the Dubai Facility to be completed by the third quarter of 2016.

Hiap Teck Venture Bhd's 55%-owned jointly-controlled entity Eastern Steel Sdn Bhd (ESSB) signed a memorandum of understanding with Angang Group Hong Kong Co Ltd's unit to explore areas of possible collaboration, including equity participation.

In a bourse filing, Hiap Teck said ESSB will discuss and negotiate with Angang, which is a wholly-owned unit of China's Ansteel Group Corp, on areas like resumption of production at ESSB, future expansion of ESSB's production capacity and product range.

The talks include Angang's possible equity participation in ESSB.

Rex Industry Bhd has disposed of its entire equity interest in Jie Yang Rex Foods Co Ltd (JYR), to the group's major shareholder and executive chairman Lee Chai Seng, for RM21 million, cash.

The group will use the proceeds from the disposal for its expansion plan in the Indonesian market, as well as as working capital.

Rex said that the total proforma gain from the disposal was about RM319,000.

Kossan Rubber Industries Bhd plans to partner with the Tong Tech Metro Vibration Control Co Ltd (TMVC) of the Shanghai Tongji University, to jointly design and manufacture anti-vibration system for railways, buildings and bridges, along the railways for the China market.

The glove maker said it has today inked a memorandum of agreement (MoA) with TMVC, for the purpose of a strategic alliance for the above venture.

The MoA was inked via Kossan's 70%-owned subsidiary, Doshin Rubber Products (M) Sdn Bhd.

Under the agreement, Doshin will manufacture the floating flab, base plate vibration isolation technology and rubber pad based on designs supplied by TMVC. It will also undertake joint product development, design, trial production and the manufacturing of the products, besides conducting technical seminars.

TMVC, on the other hand, will promote other relevant products manufactured by Doshin for China's projects, undertake joint product development and design, provide technical support to any projects outside China upon request, and undertake market development and provide technical service for the venture.