KUALA LUMPUR (July 4): Based on corporate announcements and news flow today, companies that may be in focus on Tuesday (July 5) could include: Tenaga Nasional, Comintel, KNM, LTKM, Silver Ridge, NWP and Zecon.
Tenaga Nasional Bhd (TNB) announced today that it is seeking a judicial review of the directions issued by the Energy Commission (EC) and the Minister of Energy, Green Technology and Water, in relation to a new power purchase agreement (PPA) that it is negotiating with YTL Power Generation Sdn Bhd.
TNB said its move was in relation to a direction dated April 7 that was issued by the EC to TNB, which compels TNB, among others, "to remove the incorporation of conditions precedent required by TNB" in the proposed new PPA with YTL Power.
Via the judicial review, it is seeking a written order from the court to quash the EC's direction, as well as the minister's direction, and a declaration that both their directions were ultra vires, or beyond the issuer's legal power or authority, as provided under the Electricity Supply Act 1990 (ESA) and the Energy Commission Act 2001.
Failure to comply with the EC's direction is a punishable offence under Section 50E of the ESA, which could result in TNB being fined not more than RM200,000 or jailed for no more than two years, or both.
As such, TNB wants the EC's direction be stayed "pending the hearing and determination of the judicial review proceedings on its merits".
"Aside from legal and management costs, the judicial review proceedings will not have any material financial and operational impacts on TNB," said TNB, adding it would make further announcements as and when there is any material development to the case.
Comintel Corporation Bhd has been approved to provide renewable energy (RE)-derived power to TNB.
It told the bourse today that the Energy Commission has approved its subsidiary Comintel Green Technologies Sdn Bhd's (CGT) application for a permanent licence.
Earlier, CGT's inability to obtain the permanent licence had served as an obstacle to its plans to supply RE-derived power to TNB.
KNM Group Bhd has accepted the offer for blanket working capital (BWC) facilities of up to RM160 million from Affin Islamic Bank Bhd to part finance the projects the group has secured in relation to the Refinery and Petrochemical Integrated Development (RAPID) in Pengerang, Johor.
Full utilisation of the BWC facilities could raise the group's gearing for the current financial year to 0.32 times, it noted. Based on its consolidated audited financial statements as at Dec 31, 2015, the group's gearing ratio stood at 0.27.
"Upon completion, the [RAPID] contracts are expected to generate recurring income and contribute positively to KNM's earnings in future financial years," it said.
LTKM Bhd is buying a one-acre freehold land here for RM12.56 million. The land is adjoined to a slightly bigger plot, which the company purchased in January.
The poultry farming company said in a bourse filing today when combined, the total land area of 2.94 acres (11,888 sq m) will enhance the potential of the two plots as a whole.
"We are continuously looking for investment opportunities to acquire strategic land bank and to unlock the value of the properties for further growth opportunities over the long term," it said.
The acquisition will be undertaken by the group's wholly-owned subsidiary LTK (Melaka) Sdn Bhd from 11 individuals.
Silver Ridge Holdings Bhd plans to halve the par value of its shares to 5 sen from 10 sen each, to reduce the group's accumulated losses of RM6.82 million with the credit that will arise from the proposed corporate exercise.
There could be at least RM6.05 million credit arising from the move — assuming none of its outstanding warrants are exercised into new shares prior to the par value reduction — or as much as RM8.8 million, assuming the reverse is true, i.e. all outstanding warrants are exercised.
Loss-making timber and timber products maker NWP Holdings Bhd is looking for opportunities in the construction sector for additional sources of income that may return the company to profitability.
The group has inked two memorandums of understanding (MoUs) today; the first may result in it being appointed the main contractor of a proposed development comprising 160 serviced suites in Melaka, while the second is to form a strategic partnership with another company for future construction projects.
The first MoU was signed with property developer Listari Marina Sdn Bhd (LMSB), under which LMSB is proposing to appoint NWP as the main contractor of its project in Pekan Klebang, Melaka Tengah.
The second MoU was inked with China-based mechanical and engineering installation company SCEGC Installation Group Company Ltd, under which they will jointly undertake any construction project obtained by either party on a joint venture basis.
Zecon Bhd plans to reduce the par value of its shares by cancelling 90 sen out of the par value of every existing ordinary share of RM1 to reduce its existing accumulated losses, which amounted to RM80.42 million as at March 31.
The construction and property developer told the bourse today that the corporate exercise should give rise to as much as RM146.95 million in credit.
Meanwhile, the group also proposed a bonus issue of 163.27 million shares, on a one-for-one basis, on an entitlement date to be fixed.
Upon completion of the bonus issue, Zecon will implement a renounceable rights issue with free warrants, which entails the issuance of up to RM136.06 million nominal value of five-year, 5% redeemable convertible unsecured loan stocks.
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