KUALA LUMPUR (June 6): Based on corporate news flow and announcements today, stocks in focus tomorrow (Tuesday, June 7) may include: WZ Satu, KUB, Global Oriental, Sime Darby, Maybank, DRB-Hicom, and Muhibbah Engineering.
WZ Satu Bhd's wholly-owned unit WZS KenKeong Sdn Bhd has bagged a RM43 million subcontract from Menuju Asas Sdn Bhd to upgrade the federal road between Teluk Intan and Kampung Lekir, Perak.
The job at Lebuhraya Persisiran Pantai Barat would last for 24 months beginning June 10, 2016. It is expected to contribute positively to the group's future earnings and net assets per share for the financial years ending Aug 31, 2016 till 2018.
KUB Malaysia Bhd has signed a share acquisition agreement with JEKS Precast Sdn Bhd to dispose of its entire stake in its loss-making unit KUB Precast Sdn Bhd for RM19 million, the exact sum of its original cost of investment.
KUB Precast is primarily engaged in the business of manufacturing and trading of precast concrete slabs and concrete elements largely sold to the construction industry.
The disposal will mark the departure of KUB from the engineering and construction sector and refocus back into its core businesses: agro, energy and information and communication technology.
The group plans to use proceeds from the sale to finance its working capital and capital expenditure, particularly for its core businesses.
Global Oriental Bhd's 51%-owned unit Sering Manis Sdn Bhd (SMSB) plans to acquire 113.2ha of freehold land in Mukim Bentong, Pahang, for RM170.67 million or RM14 per square foot, from property investor Panji Selera Sdn Bhd to expand its property development segment.
The land is surrounded by lush greenery and is closed to Genting Highlands, presenting opportunity to develop resort-like residential and commercial development.
The proposed acquisition, which would be funded by internally generated funds and bank borrowings, provides an opportunity for the group to increase the size of its land bank in order to enhance its future revenue and earnings.
The proposed acquisition is expected to be completed by early November 2016.
Sime Darby Bhd said disputes relating to an oil and gas platform project in India, in which its wholly-owned subsidiary is involved, will be referred to arbitration.
The group said its subsidiary Sime Darby Engineering Sdn Bhd (SDE) and Swiber Offshore Construction Ptd Ltd have issued a notice of invocation of arbitration to India's state-owned Oil & Natural Gas Corporation Ltd (ONGC).
The SDE-Swiber consortium was awarded a US$618.4 million (about RM2.54 billion) contract for the wellhead platform project in western India by ONGC in 2010.
Disputes and differences relating to the process platform project have since arisen between the consortium and ONGC. Pursuant to the contract, the disputes between the parties shall be referred to and determined by arbitration in India.
Sime Darby said the arbitration proceeding is not expected to have a material impact on its earnings and net assets for the financial year ending June 30, 2016.
Malayan Banking Bhd (Maybank) has appointed group global banking head Datuk Amirul Feisal Wan Zahir as group chief financial officer (CFO).
At the same time, current group chief financial officer Datuk Mohamad Rafique Merican will be appointed as Maybank Islamic chief executive officer (CEO), replacing Datuk Muzaffar Hisham who will take over the group global banking head position.
All appointments are effective July 1.
Maybank group president and CEO officer Datuk Abdul Farid Alias said the rotation of portfolios are meant to address three objectives, the first of which is to strengthen and improve the new roles assumed by the leaders bringing new ideas and heightening energy.
The second objective relates to the continuous development in leadership skills of the appointees which also applies to all Maybankers under their own personal development plans.
The third is to strengthen Maybank Group's Leadership bench strength.
The Malaysian government, via the Minister of Finance Inc's 99.99%-owned unit GOVCO Holdings Bhd, plans to take up 1.25 billion new redeemable convertible cumulative preference shares (RCCPS) issued by Proton Holdings Bhd for RM1.25 billion, cash.
"The proposed RCCPS issuance will enable Proton to regularise its cashflow and settle the long outstanding balance payable to various local and international creditors, vendors and suppliers," DRB-Hicom Bhd, Proton's sole holding company, said in a bourse filing today.
The RCCPS carries a par value of 1 sen each and will be issued at an issue price of RM1, a premium of 99 sen to its par value.
GOVCO, in which the Federal Lands Commissioner holds one ordinary share, inked a conditional subscription agreement with Proton today to effect the share subscription proposal, subject to certain conditions precedent.
A dividend of 4% shall be declared by Proton per annum on a cumulative basis for the RCCPS, which carries a conversion ratio of 1 unit of RCCPS to 1.152 units of Proton shares. The RCCPS will have a tenure of up to 15 years after the issuance date.
“On the assumption that PHB converts the entire 1.25 billion Proton’s RCCPS and the unpaid dividend declared for the PHB RCCPS of RM574 million into 2.1 billion new Proton’s shares at the end of the tenure based on the conversion ratio, DRB-HICOM’s shareholdings in PHB will be diluted from 100% to approximately 20.72% and DRB-HICOM will then cease to consolidate Proton Group’s financial statements. GOVCO will hold approximately 79.28% in Proton,” it added.
The proposed RCCPS issuance is expected to be completed by 7 June 2016.
Muhibbah Engineering (M) Bhd is acquiring 500 acres of land in Kuantan, Pahang, for RM26.45 million in cash, to be used for the development of the Kuantan Maritime Hub over a period of 10 years.
In a bourse filing, Muhibbah said it had entered into an agreement with Perbadanan Setiausaha Kerajaan Pahang on June 4 for the acquisition of the land.
The land is located about 20km north of Kuantan and is a waterfront parcel located along the main road of Jalan Tanjung Gelang Off Jalan Kuantan heading to Kuantan Port.
Muhibbah said the land, being a waterfront parcel, will support oil and gas related industries, commercial ship building and ship repairs activities, the defence sector and the maritime industry to complement the commercial activities in the east coast of West Malaysia.