KUALA LUMPUR (July 11): Based on corporate announcements and news flow today, companies that may be in focus on Tuesday (July 12) could include: KESM, Press Metal, Borneo Oil, Southern Steel, GHL Systems, Reliance Pacific, Genting, DiGi, LPI Capital, AirAsia X and SapuraKencana.
KESM Industries Bhd has declared a special interim dividend of 4.5 sen a share to be paid on Aug 18.
In a filing with Bursa Malaysia today, the company said it will be dishing out a total of RM1.9 million to pay shareholders the special dividend.
KESM executive chairman and chief executive officer Sam Lim said the company has performed "exceedingly well" in the first nine months of this financial year, posting a profit after tax of RM22.6 million, which surpasses the last financial year's 12-month results of RM17 million.
The country's largest integrated aluminium producer Press Metal Bhd has proposed a share split and bonus issue as part of an internal reorganisation that will see a new entity assume its listed status.
The company said the share split involves the subdivision of its 50 sen shares into two shares of 25 sen each.
The bonus issue will comprise up to 1.154 million new subdivided shares to be offered on the basis of two bonus shares for every five subdivided shares.
Press Metal said the internal reorganisation proposes the assumption of the listing status of Press Metal by an entity tentatively called Newco, whereby Newco will be admitted to Bursa in place of Press Metal.
The company will be incorporated on the basis of one Newco share for every one subdivided share held.
Press Metal also proposed a warrants exchange of all the outstanding 2011/2019 Warrants C Press Metal with new warrants in the Newco on the basis of one new Newco warrant for every one existing Press Metal warrant held.
Borneo Oil Bhd, which saw a sharp rise in the trading volume of its shares in the past two days, pointed to its improved first quarter performance in the three months ended April 30, 2016 (1QFY17) and the recent rally in the prices of gold globally following the Brexit vote as possible reasons behind the unusual market activity (UMA).
In its 1QFY17, it reported a net profit of RM10.7 million, more than 20 times its 1QFY16 net profit of RM525,000.
Other than the above, it said in its reply to the regulator's UMA query that it was unaware of any corporate developments, rumour or report that could have led to the sharp rise in the trading volume of its shares.
Steel maker Southern Steel Bhd has terminated the services of Italian plantmaker Danieli & C. Officine Meccaniche S.p.A for the design, manufacture and supply of a thin slab casting unit for the production of hot rolled coils (HRCs), claiming the latter has failed to fulfil its contractual obligations.
Southern Steel said its wholly-owned unit Southern HRC Sdn Bhd terminated the agreement last Thursday (July 7). The thin slab casting unit was to be fed directly to a twin steckel mill for the production of HRCs.
The original agreement was inked on June 16, 2011. The amount involved in the contract is said to be approximately RM427 million.
Payment service provider GHL Systems Bhd has teamed up with a leading bank in the Philippines, Rizal Commercial Banking Corp (RCBC), to provide e-payment services to merchants in the Philippines for credit card transactions.
GHL Systems said in a statement that its wholly-owned subsidiary GHL Systems Philippines Inc (GHL Philippines) has signed an agreement to provide transaction payment acquisition services to RCBC through its servicing entity, RCBC Bankard Services Corp.
This new service will enable GHL Philippines to directly contract with merchants to provide credit card payment services with RCBC acting as the underlying bank that will obtain authorisation for the credit card transactions.
Reliance Pacific Bhd's chief executive officer Datin Irene Tan and her husband Datuk Gan Eng Kwong — both founders of the travel and tour company — are no longer substantial shareholders in the loss-making outfit.
According to filings with Bursa Malaysia, the couple had disposed of 37.34 million shares representing a 4.35% indirect stake in the company held via Reliance Holdings Sdn Bhd and through nominees to Mazmur Capital Sdn Bhd, a vehicle of Reliance executive director See Ah Sing.
The shares were disposed of to See at 22.5 sen per share on July 8, a 39% discount to Reliance closing market price of 37 sen today. After the disposal, Tan and Gan are both left with 14.69 million shares or a 1.7% stake.
See, an associate of former finance minister Tun Daim Zainuddin, now holds some 248.18 million Reliance shares or a 28.91% stake.
Daim's son Datuk Md Wira Dani Abdul Daim, who emerged as a substantial shareholder in the company on April 12, is now Reliance Pacific's largest shareholder with a 30.96% stake.
Genting Hong Kong Ltd, 17.8%-owned by Genting Bhd, will spend €100 million (RM439.81 million) to turn MV Werften, the three shipyards it acquired in April this year, into one of the most efficient and innovative cruise shipbuilders in Europe.
This follows the completion of the acquisition of the three shipyards in Wismar, Warnemunde and Stralsund. In a statement, Genting HK said MV Werften will be managed in Wismar and will focus on building large new ships.
Lloyd Werft, another shipyard located in Bremerhaven, Germany, that Genting HK bought last September, will focus on its prior business of repairs, conversion and building of megayachts.
DiGi.Com Bhd's net profit for the second quarter ended June 30, 2016 (2QFY16) fell 9.4% to RM420.61 million or 5.41 sen per share due to unrealised foreign exchange and derivatives losses of RM12.72 million.
It posted a net profit of RM464.36 million or 5.97 sen per share a year ago.
Revenue fell 3.9% to RM1.66 billion from RM1.72 billion.
DiGi declared a second interim dividend of 5.4 sen per share amounting to RM420 million for the financial year ending Dec 31, 2016 (FY16), payable on Sept 30.
For the cumulative six-month period (1HFY16), the company posted a 13.1% decline in net profit at RM819.65 million or 10.54 sen per share as compared to RM943.58 million or 12.1 sen per share in 1HFY15; revenue was 5.7% lower at RM3.31 billion from RM3.51 billion previously.
LPI Capital Bhd achieved sterling results in the second quarter ended June 30, 2016 (2QFY16), which saw its net profit surge 148% to RM212.62 million from RM85.74 million a year ago, due to its investment holding segment chalking up gains of RM150.4 million on its equity investment disposals.
Revenue for 2QFY16 also increased 11.33% to RM339.25 million from RM304.73 million in the previous year. The company also declared a first interim dividend of 25 sen per share, amounting to RM83 million.
For the first half ended June 30, 2016 (1HFY16), the group's net profit also jumped 94.5% to RM278.01 million from RM142.94 million in 1HFY15, while revenue rose 10.62% to RM659.81 million from RM596.46 million.
AirAsia X Bhd (AAX) is going to fly to London "soon", said AirAsia co-founder and group chief executive officer Tan Sri Tony Fernandes in a Facebook post.
In November 2014, AAX said it was looking to revive flights to London as early as 2015. The airline suspended all flights to Europe, including London and Paris, in March 2012, due to high operating costs. It launched the service between Kuala Lumpur and London in March 2009.
Fernandes, who is prolific on social media, had tweeted then that "the reopening of KL-London is definitely on the cards".
"KL-London is the most wanted route for AAX, and we will deliver it. I am quite sure," he had added.
SapuraKencana Petroleum Bhd said its Berantai risk service contract (RSC) from Petroliam Nasional Bhd (Petronas) will cease this September following a mutual agreement between the RSC owners and Petronas.
SapuraKencana said the RSC was intended for crude oil production from the Berantai field, located offshore Peninsular Malaysia.
SapuraKencana said its wholly-owned subsidiaries Sapura Energy Ventures Sdn Bhd and Kencana Energy Sdn Bhd own 25% each in the RSC. Joint-venture partner Petrofac Energy Developments Sdn Bhd holds the remaining 50% in the RSC.
With the cessation of the RSC, effective on Sept 30, Petronas will reimburse all outstanding capital and operational expenditures to the contractors by June 2017. The ownership of Berantai floating production, storage and offloading will be transferred to Petronas.
The RSC owners had signed the Berantai contract with Petronas on Jan 31, 2011, according to SapuraKencana.