Carimin Petroleum Bhd is seeking shareholders' approval for its proposed diversification into the construction business, following the downturn in the oil and gas industry. It targets to complete the proposal by the fourth quarter of 2016.
In a filing with Bursa Malaysia, Carimin said it has executed a share sale agreement to acquire 60% stake Noblecorp Builders (now known as Carimin Bina Sdn Bhd) for RM838,000 in July this year. Carimin Bina is principally involved in general civil contracting and geotechnical work.
Carimin said the diversification is expected to provide a new source of revenue to the group and it is expecting the new segment to contribute more than 25% of its net profit in the future.
Carimin is now primarily in the provision of offshore hook-up and commissioning services, maintenance, engineering and minor fabrication services for offshore and onshore structures.
Malaysia Airports Holdings Bhd rose as much as 56 sen or 8% to RM7.30 earlier today on speculation the Malaysian Cabinet had approved an upward revision to the airport passenger service charge (PSC).
However, its shares pared most of the gains to settle at RM6.80 at market close, leaving it with only a 6 sen or 0.89% rise, after near 7 million shares were exchanged.
News reports today, quoting sources, indicated the new PSC would be raised to RM11 for domestic flights from RM9 currently, and RM73 for international flights from RM65 at KLIA and RM32 at klia2. It was reported that the Cabinet had approved the new PSCs.
Transport Minister Datuk Seri Liow Tiong Lai also confirmed that a new set of higher PSC rates would be implemented by Jan 1 next year, but declined to provide details.
Daya Materials Bhd's engineering and construction unit has bagged a RM224 million contract to build retail facilities for Aspen Vision City Sdn Bhd in Batu Kawan, Penang.
Aspen Vision City is a joint venture between Penang-based property player Aspen Group and Ikano Group, the operator of Swedish furniture store IKEA in Singapore, Thailand and Malaysia.
The development in Batu Kawan will boast the first IKEA store in Penang and the northern region.
In a bourse filing, Daya Materials said the contract will last for 17 months.
Comintel Corp Bhd's net profit for the second quarter ended July 31, 2016 (2QFY17) more than doubled to RM2.49 million, from RM880,000 a year ago, driven by its manufacturing segment.
The better earnings was contributed by higher demand for its products and shipment of better margin products, besides reduced losses from the system integration and maintenance service (SIMS) segment, it said in a bourse filing.
Revenue was 14.8% higher at RM85.78 million from RM74.73 million a year earlier.
For the cumulative six months ended July 30, 2016 (1HFY17), its net profit was 186.5% higher at RM7.85 million from RM2.74 million in 1HFY16, while revenue was 19.9% higher at RM189.49 million compared with RM158.06 million previously.
Going forward, Comintel expects its manufacturing segment to perform satisfactorily for the remaining quarters of FY17, despite the global economic slowdown.
It also said it has been shortlisted for some advanced gasification system projects overseas and expect the award announcement by year end or early next year.
"If awarded the contracts, our green energy sector is expected to contribute positively towards the growth and profitability of the group in the subsequent financial years," it added.
DRB-Hicom Bhd is planning to sell its 90% stake in Corwin Holding Pte Ltd, which owns properties in Singapore, again. But the selling price has been slashed by 40% when compared to an earlier planned disposal that was announced in December last year.
DRB-Hicom said its indirect wholly owned subsidiary Hicom Megah Sdn Bhd together with the minority shareholders, namely Mohamed Mustafa & Samsuddin Co Pte Ltd and BI Distributors Pte Ltd, would sell Corwin to Columba Holdings Pte Ltd for S$189.7 million (RM575.3 million).
It previously wanted to sell its Corwin stake to Evolutyon Real Estate Investment Holding Pte Ltd for S$317 million (RM964.6 million), though the deal was later aborted in May this year when it failed to fulfil its contractual obligations by the agreed date.
Corwin, which is involved in property investment, owns The Verge leasehold commercial development comprising an eight-level shopping mall building and another eight-storey building known as 'The Chill'.
The Verge is located at No. 2, Serangoon Road, Singapore and has a total gross floor area of 238,527 square feet. Its net book value as at March 31, 2016 was S$140 million.
Berjaya Land Bhd (BLand), which posted a net loss in the first quarter ended July 31, 2016 (1QFY17), is buying 871.01 acres of freehold lands in Sungai Tinggi, Ulu Selangor to boost its land bank via a related party transaction for RM155 million or RM177,954 per acre.
BLand's unit Alam Baiduri Sdn Bhd has inked a sale and purchase agreement with BerjayaCity Sdn Bhd, a 100%-owned subsidiary of its parent company Berjaya Corp Bhd, to effect the deal.
"The lands are located within an area zoned for industrial according to the Planning Department of Hulu Selangor District Council," the property developer said in a bourse filing.
Currently, the lands comprise oil palm estates and vacant lands, and the age of the oil palm trees as of Aug 1, ranged between 15 and 26 years old.
Earnings-wise, BLand posted a net loss of RM27.24 million in 1QFY17 compared to a net profit of RM9.91 million a year ago, marking its third consecutive losing quarter.
The lower earnings were due to, among others, unfavourable foreign exchange effect recognised by a foreign subsidiary company of Berjaya Sports Toto Bhd, higher operating expenses incurred by H.R.Owen Plc, and losses incurred by the property development and investment business from lower progress billings.
Revenue for the quarter gained 3.3% to RM1.55 billion from RM1.5 billion a year ago.
Going forward, BLand said its operating performance will continue to be challenged in the remaining quarters of FY17, due to escalating cost of living, prevailing economic conditions and the increasing illegal gaming activities.
NetX Holdings Bhd plans to cancel three sen off the par value of its ordinary shares of five sen each to two sen, which could raise up to RM56.3 million to eliminate accumulated losses of RM37.3 million.
As at Sept 21, 2016, it had an issued and paid-up share capital of RM62.5 million comprising 1.2 billion shares. Any surplus after debt cancelling would be credited as retained earnings for future corporate exercises or to set off against any future accumulated losses.
It said the illustrative maximum amount of RM56.3 million is based on the assumption that all its outstanding warrants are exercised into new shares prior to the effective date of the proposed par value reduction.
However, it is of the view that it is unlikely for such assumption to materialise in view that the last transacted price of 2.5 sen per share as at Sept 21 is lower than the exercise price of the outstanding warrants of five sen each. The outstanding warrants will expire on June 8, 2019.
NetX expects the proposed par value reduction to be completed in the first quarter of 2017.