Top Glove Corp Bhd, the world's largest glove maker, is targeting to grow its sales volume by 10% per year. It expects the growth to be driven by its capacity expansion, which is in the pipeline.
Speaking to reporters at its briefing on its results for the fourth quarter ended Aug 31, 2016 (4QFY16) today, Top Glove executive chairman Tan Sri Lim Wee Chai said the group is looking to increase its market share in both developed and developing countries.
Lim also said that the group continues to see rising demand of nitrile gloves from both of these markets.
According to Lim, Top Glove plans to add an extra 112 lines by 2020, which will boost its total capacity to 58.8 billion pieces of gloves per year, from 46.6 billion pieces per year currently.
On potential mergers and acquisitions (M&A), Lim said the group will approach any M&A "smartly" and "prudently" to ensure its sustainability.
Therefore, he said the group’s focus is to acquire existing factories, which Top Glove can put in additional machineries, in order to compete more efficiently.
Pasdec Holdings Bhd, a Pahang-based property developer, has proposed to undertake a capital reduction that will halve the par value of its share, making way for a rights issue to raise up to RM34.32 million. It also intends to buy office units worth a combined RM40 million, via issuance of new shares.
In a filing with Bursa Malaysia today, Pasdec said the capital reduction involves reducing the par value of its share to 50 sen, from RM1 apiece.
Pasdec said its shares have been trading below its existing par value of RM1, which is not conducive for it to embark on a fund-raising exercise involving new issuance of shares.
After capital reduction, Pasdec will acquire 12 office units via the issuance of 80 million new shares at an issue price of 50 sen apiece.
The group said it had entered into a conditional sale and purchase agreement with Jasa Imani Sdn Bhd for the acquisition of these office units located within a 23-storey office building called Menara Zenith in Kuantan, Pahang.
Pasdec also proposed a renounceable two-call rights issue of 114.39 million new shares, on the basis of two rights share for every five existing shares.
At an indicative issue price of 50 sen, Pasdec said the first call of 30 sen will be payable in cash on application, and the second call of 20 sen is to be capitalised from the group’s reserves.
The rights issue also comes along with five-year-tenure free detachable warrants, on the basis of one warrant for every one rights share subscribed.
Pasdec said these exercises are expected to be completed by the first half of 2017.
Selangor Dredging Bhd, a property developer, is disposing of 16 pieces of freehold land in Damansara Heights, Kuala Lumpur, which collectively measures 15,751 sq m, for RM71 million cash.
In a filing with Bursa Malaysia today, Selangor Dredging said its wholly-owned subsidiary, SDB Damansara Sdn Bhd, has entered into an agreement with Bukit Selesa Development Sdn Bhd for the disposal.
Selangor Dredging said the disposal consideration will be solely used for repayment of intercompany borrowings.
Selangor Dredging expects to complete the disposal by the third quarter of 2022.
HeiTech Padu Bhd, an information technology systems solution provider, has accepted a purchase order worth RM14.86 million from Prudential Services Asia Sdn Bhd for disaster recovery services and office rental services.
In a filing with Bursa Malaysia today, HeiTech Padu said the duration of the purchase order is for three years, which is expected to contribute positively to its future earnings.
Pantech Group Holdings Bhd saw its net profit plunge 51% to RM5.14 million or 0.84 sen per share for the second financial quarter ended Aug 31, 2016 (2QFY17), from RM10.43 million or 1.72 sen per share a year earlier.
Revenue was down 14% to RM103.81 million, from RM121.41 million, it said in a filing with the stock exchange.
Pantech said the lower performance was due to weak demand in the oil and gas (O&G) sector, while competition had pressured margins.
For the cumulative six months (1HFY2017), net profit fell 32% to RM13.23 million, from RM19.55 million in 1HFY2016; while revenue declined 12% to RM227.75 million, from RM260.04 million.
In view of the current low international oil price, the group said it is cautious with challenges faced by the O&G industry in both global and domestic markets.
Oil and gas integrated services provider Tanjung Offshore Bhd’s wholly-owned subsidiary, T7 Property Sdn Bhd, plans to acquire a RM9.8 million freehold single-storey detached factory in Hulu Langat, Selangor, to save on rental and improve its corporate image.
Tanjung told Bursa Malaysia that it has entered into a sale and purchase agreement (SPA) with Public Bank Bhd, for the building annexed with a three-storey office/showroom.
Tanjung said the rational was due to the expiry of tenancy agreement of Gas Generators Sdn Bhd, its wholly-owned subsidiary, in the fourth quarter of 2016.
The medium industrial purpose-building houses Gas Generators’ operation and production site, and another wholly-owned unit, Universal Gas Generators Sdn Bhd.
Tanjung said the proposed acquisition is expected to result in rental savings, adding it would fund the purchase through internal funds and bank borrowings.
DBE Gurney Resources Bhd, an integrated poultry firm, has proposed to undertake a bonus issue of up to 2.34 billion free warrants to reward its existing shareholders.
This is on the basis of one warrant for every two DBE Gurney shares held by the shareholders, on an entitlement date to be determined and announced later.
In a filing with Bursa Malaysia today, DBE Gurney said the exercise will enable the company to strengthen its capital base and market capitalisation, as well as potentially provide additional working capital to the group, when the warrants are exercised.
The exercise price of the warrants has been fixed at 5 sen each and the tenure is five years from and including the date of issue of the warrants.
The corporate exercise is expected to be completed in the first quarter of 2017.
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