Companies in the news - Tropicana Corp, Astral Supreme, MRCB, Tiger Synergy, Warisan TC, Xin Hwa, Yong Tai, Microlink Solutions and Sumatec

KUALA LUMPUR (July 1): Based on corporate announcements and news flow today, companies that may be in focus next Monday (July 4) could include: Tropicana Corp, Astral Supreme, MRCB, Tiger Synergy, Warisan TC Holdings, Xin Hwa Holdings, Yong Tai, Microlink Solutions and Sumatec Resources.

Tropicana Corp Bhd is selling a freehold plot measuring 251.6 acres in Gelang Patah, Johor Bahru for RM569.9 million cash, to raise funds for working capital and repay the group's bank borrowings, in line with its de-gearing exercise to strengthen its financial footing.

The group expects to realise a gain on disposal of about RM55.5 million, according to a bourse filing today.

Its original cost of investment stood at RM366.6 million, while its net book value as at Dec 31, 2015, was RM413.7 million.

The net proceeds of approximately RM218.4 million after repayment of bank borrowings, taxes and related expenses arising from the disposals are expected to be utilised for the working capital and repayment of bank borrowings.

Astral Supreme Bhd is planning to undertake a high-rise residential project with an estimated gross development value of RM152.22 million on a leasehold plot in Seri Kembangan, Selangor, via a joint venture with the soon-to-be owner of the plot, Paragon Residencia Sdn Bhd.

Astral Supreme's wholly-owned unit, Astral Supreme Development Sdn Bhd (ASDSB), inked a Heads of Agreement (HoA) today with Paragon Residencia to express the parties' intention to enter into a JV to undertake the proposed development, a bourse filing from Astral Supreme showed.

The development is a 28-storey apartment with 256 residential units. The plot of land on which it will be built measures 3.2 acres, and is currently listed for agricultural use.

The project's gross development cost is estimated to be RM123.99 million, which will yield a gross profit of RM28.23 million.

The project should commence in the first quarter of 2017 and be completed in five years.

Malaysian Resources Corporation Bhd (MRCB) has clinched a RM188.68 million contract to restore the Pahang river estuary in Pekan Pahang.

MRCB said in a filing with Bursa that it had today received a letter of award from the Malaysian Irrigation and Drainage Department to carry out the Pahang river estuary conservation (Phase 3) project, package 2, which involves restoring the estuary of the river near Kuala Pahang.

The construction period is two years and the project is expected to be completed by July 2018.

Tiger Synergy Bhd has partnered with a private property developer Kemajuan Rowther Sdn Bhd (KRSB) to develop nine plots of land in Kuala Lumpur for an estimated cost of about RM28.51 million.

Tiger Synergy told Bursa Malaysia that its wholly-owned subsidiary, Tiger Synergy Timber Sdn Bhd, had on June 30 entered into a joint venture agreement with KRSB to undertake a residential and/or commercial strata units and/or such other development project in respect of the development of the nine plots of freehold land.

Tiger Synergy will finance the proposed joint venture through internally-generated funds and bank borrowings.

Travel services provider Warisan TC Holdings Bhd has inked a joint venture (JV) agreement with nine individuals to establish a travel and tourism business in Thailand.

In a filing with Bursa Malaysia today, the company said the JV is part of its regional expansion plan to establish a travel and tourism entity in Bangkok, Thailand, to provide a range of services, including corporate ticketing, inbound, outbound and corporate incentive.

Johor-based logistics company, Xin Hwa Holdings Bhd, is acquiring a 1.77-hectare land in Pekan Baru Hicom in the Klang Valley to expand its market presence in the central region of Peninsular Malaysia.

Xin Hwa’s wholly-owned unit, Xin Hwa Trading and Transport Sdn Bhd, is buying the freehold plot — which comes with a single-storey detached warehouse with an annexed two-storey office building and other ancillary buildings — from Maxis Broadband Sdn Bhd for RM25.7 million.

The construction is expected to commence in the first half of 2017 (1H17) and will be completed in 1H18 at a cost of about RM20 million, the company said in a filing to Bursa.

The acquisition, to be completed in three months, will be financed through a combination of internally-generated funds and bank borrowings.

Yong Tai Bhd has teamed up with PGCG Assets Holdings Sdn Bhd to jointly undertake a mixed development with a gross development value of RM510 million in Ijok, Kuala Selangor.

The garment maker-turned-property developer said it has inked a memorandum of understanding (MoU) with PGCG for the proposed development, according to a filing with Bursa Malaysia.

Both parties plan to jointly develop a 22-hectare piece of leasehold land in Puncak Alam, Ijok, and construct 1,039 mixed development properties.

PGCG is a 90%-owned indirect subsidiary of Prime Global Capital Group Inc, a public-listed company in the U.S. It is the registered owner of the land.

Microlink Solutions Bhd was issued an unusual market activity (UMA) query by Bursa Malaysia today, after the recent surge in its share price.

Its share price, which was trading at RM1.22 on June 23, has leapt 33.6% in just a week.

Sumatec Resources Bhd has entered into a HoA consisting of a non-binding document, outlining the main issues relevant to a tentative agreement with Markmore Sdn Bhd (Markmore). The HoA is related to its proposed acquisition of 100% equity interest in Markmore Energy (Labuan) Limited from Markmore.

The parties to the HoA agree-in-principle that the purchase consideration for the proposed acquisition shall be US$205 million and US$45 million for the reimbursement cost.

With the proposed acquisition, Sumatec will own the entire oil and gas reserves at the Rakushechnoye Oil and Gas field and is expected to enhance the effectiveness and efficiency of operations at the field.