KUALA LUMPUR (Aug 12): Based on corporate announcements and news flow today, companies that may be in focus nex Monday (Aug 15) could include: PDZ Holdings, UEM Edgenta, APM Automotive, SMTrack, Petronas Gas, Tek Seng, Guan Chong Bhd and Federal Furniture Holdings (M) Bhd.
Johany Jaafar, founder, managing director and chief executive officer of offshore vessel operator Efogen Sdn Bhd, has filed a counterclaim in the High Court against PDZ Holdings Bhd and Pelaburan Mara Bhd, seeking RM166.51 million in damages.
PDZ said that in the counter claim, Johany has named PDZ as second defendant on the basis that PDZ had wrongfully terminated a share sale agreeement agreement (SSA) on Sept 25, 2014.
The company claims that Johany’s claim against PDZ is not sustainable, as the latter was never a party to a contract entered between PDZ and Pelaburan Mara.
"However, the amount stated in the plaintiff’s (Johany) counter claim against PDZ is huge, and if judged in his favour, will adversely and materially impact PDZ’s earnings per share and net asset per share for the financial year ending June 30, 2017," said PDZ, adding that the RM166.51 million value was relied upon by Johany, based on a valuation of the enterprise value of Efogen of RM251.14 million given by Grant Thornton.
PDZ said it entered appearance on Aug 2 and appeared before the judge for case management on Aug 10. The judge has directed the defence to be filed before Aug 23.
UEM Edgenta Bhd’s wholly-owned unit Edgenta PROPEL Bhd has been awarded an RM87 million-deal for the relocation of telecommunication works in relation to the Mass Rapid Transit 2, also known as the Sungai Buloh-Serdang-Putrajaya Line (MRT2) project.
UEM Edgenta said Edgenta PROPEL has accepted the letter of award for the deal from Ahmad Zaki Sdn Bhd.
The relocation works is in relation to package V202 of the MRT2 project, which comprises construction and completion of viaduct guideway and other associated works from Persiaran Dagang to Jinjang.
APM Automotive Holdings Bhd is teaming up with a Thai firm to manufacture, assemble and sell automotive seats in Vietnam for original equipment manufacturers (OEM).
APM Automotive told Bursa Malaysia that its indirect unit APM Automotive IndoChina Ltd has inked a joint venture agreement with TACHI-S (Thailand) Co Ltd, a unit of TACHI-S Co Ltd, today, for the above purpose.
According to the automotive parts and components maker, a new joint venture company (JV Co) will be incorporated in Vietnam under the proposed name 'APM TACHI-S Seating Systems Vietnam Co Ltd', with an investment capital and charter capital of US$2.5 million.
APM Automotive will contribute 49% or US$1.23 million to the JV Co, while TACHI-S will contribute 51% or US$1.275 million.
Besides the business of developing, manufacturing, assembling and selling automotive seats in Vietnam for OEM, the JV Co may also undertake other businesses that are deemed fit and beneficial to both JV parties
Loss-making SMTrack Bhd has proposed to acquire U.S.-based Wellspring Worldwide Ltd for an undisclosed amount.
Wellspring Worldwide is the global master licensor of Tutti Fruitti Frozen Yogurt, O'My Buns! and YoFlavor.
SMTrack said the purchase consideration will be decided upon completion of a due diligence conducted by the company, and will be satisfied by issuance of new SMTrack shares.
"The proposed acquisition is subject to the vendors providing a profit guarantee on the minimum profit after tax of the Wellspring Group for two financial years, following the completion of the proposed acquisition," it added.
Petronas Gas Bhd signed an agreement today to set up a joint venture company with Linde (M) Sdn Bhd to develop an air separation unit (ASU) plant in Pengerang, Johor.
Petronas Gas said it will hold a 51% stake in the venture, while Linde, which is involved in the manufacturing and distribution of industrial gases, will own 49%.
It said the plant is being set up at the Pengerang Integrated Complex to meet its demand for gaseous oxygen and gaseous nitrogen.
“The revenue stream is expected to cover capital and operational expenditure for the construction and operations of facilities.
“The total project cost is estimated at US$172 million, with Petronas Gas’ portion of the cost amounting to an estimated US$88 million. The source of funding for the project is expected to be via a combination of equity and debt from the respective parties,” said Petronas Gas.
Higher contribution from its solar segment business lifted Tek Seng Holdings Bhd's second quarter net profit by more than four-fold to RM16.23 million or 4.89 sen per share, from RM3.69 million or 1.5 sen per share a year ago.
Revenue for the second quarter ended June 30, 2016 (2QFY16) doubled to RM159.53 million, from RM78.87 million previously, due to higher sales across all its business segments.
The Penang-based PVC products manufacturer turned solar cell maker, declared a one sen interim dividend, payable on Sept 9.
According to its filing with Bursa Malaysia today, Teck Sing’s solar segment swung into the black with a profit of RM13.23 million, as compared with a loss of RM3.66 million a year ago.
Stronger ringgit boosted Guan Chong Bhd's net profit for the second quarter ended June 30, 2016 (2QFY16) to RM10.66 million, which is over five times the RM1.96 million it had recorded in the same period last year.
The leading cocoa processor in Asia told the stock exchange today that better earnings were due to higher net gain on foreign exchange.
Revenue, on the other hand, only gained 1.2% to RM583.39 million, from 576.56 million a year ago, which is mainly due to higher average selling price of cocoa solids.
The stronger quarterly earnings also lifted its net profit for the cumulative six months ended June 30, 2016 (1HFY16) to RM24.36 million, from RM108,000 a year earlier; while revenue improved 14.7% to RM1.17 billion, from RM1.02 billion.
Federal Furniture Holdings (M) Bhd proposes to acquire 60% of construction company Pembinaan Masteron Sdn Bhd (PMSB) for RM33 million, in order to diversify its core business.
The group expects the new construction business to grow and subsequently contribute positively to its earnings and profitability, it said it a filing to the bourse today.
Federal Furniture said the proposed acquisition would be satisfied via a combination of RM6 million cash and an issuance of 270 million new redeemable convertible preference shares of 10 sen each in the furniture company.
“Presently, the group’s revenue is principally derived from manufacturing and trading of furniture, as well as undertaking interior fit-outs projects, primarily for the property development and hospitality sectors,” it said.
The group said the acquisition would enable it to diversify its revenue streams and reduce its dependency on the current core activities, as well as to derive synergistic benefits.
http://www.theedgemarkets.com/my/article/pdz-uem-edgenta-apm-automotive-smtrack-petronas-gas-tek-seng-guan-chong-and-federal
