Companies in the news - IOI Corp, Scomi Engineering, Lion Diversified, ML Global, Multi-Usage and Reliance

KUALA LUMPUR (July 8): Based on corporate announcements and news flow today, companies that may be in focus on Monday (July 11) could include: IOI Corp, Scomi Engineering, Lion Diversified, ML Global, Multi-Usage and Reliance.

IOI Corp Bhd is liquidating indirect wholly-owned subsidiary LCK Nutrition Ltd, which is based in the Republic of Ireland. This followed LCK shareholders' decision in an extraordinary general meeting yesterday to liquidate the dormant entity.

Today, IOI Corp told Bursa Malaysia that it had appointed RSM Ireland chartered accountant George Maloney as the liquidator of LCK.

"The liquidation of LCK will not have a material effect on the earnings or net assets of the IOI Corp group for the financial year ending June 30, 2017," IOI Corp said.

Scomi Engineering Bhd's subsidiary Scomi Rail Bhd has received a winding-up petition from PSI Incontrol Sdn Bhd involving a terminated contract.

According to Scomi Engineering's filing with Bursa Malaysia today, the dispute between Scomi Rail and PSI involved an agreement signed on Sept 26, 2012. Today, Scomi Engineering said Scomi Rail had terminated the contract.

Scomi Engineering said the petition was "in respect of disputed sums alleged by PSI to be owing to the amount of RM1,016,464.11 (about RM1 million) together with further interests thereto (debt)".

"Scomi Rail will take steps to apply to strike off the petition because the debt is disputed for reasons, amongst others, due to PSI's failure to rectify its poor performance of its obligations under the contract. The petition is therefore misconceived," Scomi Engineering said.

Lion Diversified Holdings Bhd and its wholly-owned unit Limbungan Makmur Sdn Bhd have been served a claim for damages of over US$20 million (RM80.49 million) for allegedly breaching a contract of affreightment (CoA), by Monaco-based Classic Maritime Inc.

Classic Maritime is seeking damages — in the sum of US$20.5 million, and/or US$431,366.88, and/or US$1.42 million, and/or US$171,595.57, and other such sums that are owed to it — from Limbungan Makmur.

Meanwhile, Classic Maritime is seeking from Lion Diversified any and all amounts accruing to the former from Limbungan Makmur under the CoA, as Lion had, under a contract of suretyship, guaranteed the performance of Limbungan Makmur's obligations under the CoA.

Classic Maritime is also seeking interests owed from both Limbungan Makmur and Lion Diversified — which are to be assessed — pursuant to section 35A of the Supreme Court Act 1981.

"Both Limbungan Makmur and the company (Lion Diversified) believe that they have a good defence to the above claim and shall take all actions to defend such claim," the filing further read.

ML Global Bhd announced that its wholly-owned subsidiary, Vintage Tiles Industries Sdn Bhd (VTI), will cease its roof tile manufacturing and trading business from July 15, to focus on the construction business.

VTI will also be disposing of all its manufacturing machinery and equipment under its manufacturing division at a later stage, according to ML Global's filing today.

The decision was made because VTI's business operates in a very competitive environment, and in an industry that is experiencing declining revenue and margins.

As at Dec 31, 2015, VTI's manufacturing division has incurred an accumulated loss of RM17.2 million, while its unaudited quarterly results ended March 31, 2016 showed a loss of RM208,000 under the division.

Meanwhile, VTI has inked a tenancy agreement with its business collaboration partner, Terreal (M) Sdn Bhd, for the rental of its factory in Nilai, Negeri Sembilan, for nine months, with an option to extend for another six months, at RM30,000 per month.

The business cessation is expected to reduce losses and improve the overall cash flow of the group with the expected rental income.

Penang-based Multi-Usage Holdings Bhd's wholly-owned unit Multi-Usage Property Sdn Bhd (MUPSB) is being sued for allegedly failing to fulfil its obligation under a sale and purchase agreement relating to the purchase of a plot of freehold land for RM8.48 million in Seberang Perai, Penang.

The legal claim stemmed from a dispute regarding the size of the plot, said Multi-Usage in a filing today.

Multi-Usage had, on July 4, received a sealed copy of the writ and statement of claim dated June 13, 2016 from the solicitors for the plaintiff, Team Four Sdn Bhd (TFSB).

TFSB is seeking to compel MUPSB to pay the purchase consideration to TFSB's solicitors within 14 days from the date of judgment to allow the redemption of the plot from OSK Capital Sdn Bhd, and to settle the balance of the purchase consideration to TFSB in seven days from the date of the registration of the transfer to the defendant at the Land Office.

It is also seeking, among others, general damages, cost, other incidental costs, as well as special damages and aggravated damages that will be agreed to by the court.

TFSB also wants to be reimbursed for any loss and damages incurred — as assessed by the court — if the plot is sold by OSK.

Multi-Usage said it has adequate resources to meet the commitment of the claim and that the suit is not expected to have any material financial and operational impact on the group.

It added MUPSB is not a major subsidiary and that its total cost of investment in the unit is RM2.

Reliance Pacific Bhd chief executive officer Datin Irene Tan has significantly cut down her stake in the loss making travel services provider and hotel operator to 6.06%, from a 46.21% stake in April this year.

Filings with Bursa Malaysia today revealed that Reliance Holdings Sdn Bhd, the investment vehicle of Tan and her husband, Reliance founder Datuk Gan Eng Kwong, has ceased to be a substantial shareholder in the company after disposing of 97.8 million shares or an 11.4% stake in the company on July 5.

After the disposal, Reliance Holdings now holds some 41 million shares or a 4.8% stake in Reliance Pacific.

With the disposal of their stake held through Reliance Holdings, and an additional 15.77 million shares, Irene and Gan are both left with 52.03 million shares or a 6.06% stake in Reliance.

The largest shareholder of the company is now Datuk Md Wira Dani Abdul Daim, the son of former finance minister Tun Daim Zainuddin, who now controls some 265.8 million shares or a 30.96% stake in the company.

See Ah Sing, who is said to be a person linked to Daim, controls 210.84 million shares or a 24.6% stake in the company after acquiring 113.58 million shares on July 5. He is also an executive director in Reliance Pacific.