Companies in the news - RHBCap, AirAsia, FGV, Sona Petroleum and Oriental Holdings

KUALA LUMPUR (June 21): Based on corporate announcements and news flow today, companies that may be in focus on Thursday (June 23) could include: RHBCap, AirAsia, FGV, Sona Petroluem and Oriental Holdings.

The RHB Banking Group is reshuffling the top executives of its investment banking businesses, and its Singapore operation — with the changes to take effect by July 1 — confirming a report by The Edge Weekly, in its June 20–26 issue.

The business weekly had reported that Bank Negara Malaysia has approved the appointment of Robert Huray as the new chief executive officer (CEO) of RHB Investment Bank Bhd (RHB IB), setting the stage for a small management reshuffle in the group.

In a statement today, RHB Capital Bhd said incumbent RHB IB CEO and managing director Mike Chan will be appointed as the CEO of RHB Bank Singapore, and that his current posts will be taken over by Huray, who is currently the CEO of RHB Securities Singapore Pte Ltd. He will also be RHBCap's new head of group investment banking.

The current country head of RHB Bank Singapore Jason Wong, has decided to pursue other opportunities.

In his new capacity, RHBCap said Huray will spearhead the continued growth of the group's investment banking business and operations in Malaysia and regionally.

Meanwhile, Kenneth Yeoh Wei Ming, who is currently the head of Asia debt capital markets for RHB Securities Singapore, will be succeeding Huray.

The relocation of AirAsia Bhd's new headquarters to the Kuala Lumpur International Airport 2 (klia2) is likely to be delayed for at least another four months.

AirAsia's chief executive officer Aireen Omar said this was due to the incomplete access road leading to its new headquarters (HQ).

"We (are) only allowed to move in (to the new HQ) by October. Even then, I am not so sure whether we are able to move in by October, as they (Malaysia Airports Holdings Bhd, MAHB) are supposed to build an approach road leading to our new HQ.

"We have told them back in (last) August, and until now they haven't really made any effort to make sure it can be done by October," she said.

AirAsia's corporate office currently remains at the low-cost carrier terminal (LCCT), though its airline operations have moved to klia2 since May 8, 2014.

In another filing, AirAsia said it is acquiring one Bombardier aircraft from Caterhamjet Global Ltd (CJG) for US$10 million (RM40.33 million) for the use of top executives Datuk Kamarudin Meranun and Tan Sri Tony Fernandes for official business matters.

AirAsia said the deal is deemed a related party transaction, as both Kamarudin and Fernandes has interests in Tune Group Sdn Bhd, which is the sole shareholder of CJG.

AirAsia intends to pay for the purchase in cash, from internal funds.

Two indirect units of Felda Global Ventures Holdings Bhd (FGV) are being hauled to court over land-related claims.

FGV said Yapidmas Plantation Sdn Bhd (YPSB), a wholly-owned subsidiary of Pontian United Plantations Bhd (PUP), which in turn is wholly-owned by FGV, has been served with a writ of summons and statement of claim dated Feb 3, 2016, by Euggne Kousai (plaintiff).

Euggne is seeking declarations that the subleasing of a 225.96-hectare land held under a native title in Tongod, Sabah, to YPSB and transfer of the land from the plaintiff to Lahida Ibrahim is null and void. It also wants a declaration that the agreements executed by Kousai dated May 19, 2005 to sublease the land to YPSB are null and void.

Another FGV unit, Sri Kehuma Sdn Bhd (SKSB), a wholly-owned subsidiary of PUP, has also been served with a writ of summons dated May 12, 2016 by Abdul Malik Said Omar and Fathiyah S. Abdul Salam (the plaintiffs).

The plaintiffs are seeking a declaration that the execution of the issue title deeds of the 499 acre land in Labuk/Sugut, Sabah, by SKSB dated Feb 13, 1988 is null and void. They also want a declaration that SKSB holds the land as constructive trustee for the plaintiffs and the original registered proprietor of the land as stated in the land title.

FGV said Golden Land shall be required under the SPA, to indemnify and keep PUP indemnified against all losses which PUP may incur, or be liable to in relation to any legal suits in connection with, among others, a breach of a warranty.

FGV said the group will be seeking legal advice to act against the claims.

Sona Petroleum Bhd is ready to undergo the liquidation process, once the deadline to complete its qualifying acquisition (QA) expires on July 31, but when shareholders will receive their cash back is something for the upcoming liquidator to work on, said managing director Datuk Seri Hadian Hashim.

Meanwhile, Sona is working on identifying a liquidator, he told reporters after the special purpose acquisition company’s annual general meeting today.

As at Dec 31, 2015, Sona had RM527.21 million in its trust account. Hadian said entitled shareholders would receive 48 sen a share, after deducting taxes.

“It’s all up to the liquidator (as to when shareholders will receive the money). The liquidation process is set to begin after July,” Hadian said.

Oriental Holdings Bhd, its wholly-owned subsidiary Oriental Rubber & Palm Oil Sdn Bhd (ORPO) and two minority shareholders, will collectively dispose of their 100% equity in Oriental Assemblers Sdn Bhd for RM32.5 million to Aroma Kiara Sdn Bhd, a wholly-owned unit of Bursa Malaysia-listed Berjaya Assets Bhd.

Oriental Holdings and ORPO's shares, which amounted to 97.98%, were valued at RM31.8 million, while its minority shareholders Datuk Syed Mohamad Syed Murtaza and Datuk Seri Mohd Isahak Mohd Yusuf's 1.97% and 0.05% stakes, respectively, was sold at a cumulative amount of RM656,500.

The group told the local exchange that the disposal is aligned with its strategy of streamlining businesses and exiting the automotive assembly operations, which would allow the automotive division within the group to focus more on the retail business.

The disposal is expected to be completed by end-2016, following which Oriental Assemblers would cease to be the group's subsidiary.