KUALA LUMPUR: Based on corporate announcements and newsflow today, stocks in focus on Monday (Mar 6) may include: PPB, Mudajaya, PUC Founder, Scomi Engineering, IHH, Sumatec, Hock Seng Lee, Nexgram and Tiger Synergy.
PPB Group Bhd dispelled speculation that it was going to sell off its Golden Screen Cinemas Sdn Bhd (GSC), stressing that it has plans to expand the cinema business instead.
And of its planned capital spending of RM401 million this year, over half or RM215 million of that will be used to expand its film exhibition and distribution arm.
PPB managing director Lim Soon Huat told reporters the group is not seeking bids for GSC. An initial public offering is also not in its plan.
"We are the No 1 cinema operator in Malaysia. GSC is one of the core businesses in PPB group. We have nine cinemas in the pipeline," he added.
With the capital commitment, PPB is set to open three new GSC branches comprising 39 screens this year, with six new cinemas in Vietnam totalling 38 screens via its 40%-owned Galaxy Studio JSC. The group will also add three more screens to its existing GSC Summit in Petaling Jaya.
The proposed expansion will bring the GSC's total to 348 screens in 36 locations, with Galaxy Studio having 81 screens in 13 locations.
Mudajaya Group Bhd’s joint-venture coal-fired independent power production (IPP) project in India is seeing some action after a long pause.
Mudajaya said its wholly-owned unit Mudajaya Corp Bhd (MCB) has received a notification letter from the joint-venture company, RKM Powergen Pvt Ltd, on its intention to supply power to Uttar Pradesh Power Corp Ltd (UPPCL).
RKM is 74%-owned by India-based RK Powergen Pvt Ltd and 26% by MCB. The company had in March 2016 executed a 25-year power purchase agreement for the supply of 350 megawatt power with several power distribution companies in Uttar Pradesh state.
“The tariff was approved by Uttar Pradesh Electricity Regulatory Commission on Feb 1. Subsequently, UPPCL filed a review petition seeking certain modifications,” Mudajaya said.
After the modifications are approved, UPPCL will issue the notice of despatch for the commencement of power supply by RKM, the group said.
PUC Founder (MSC) Bhd plans a 10% placement or up to 109.4 million shares to raise RM9.3 million to fund its technology business expansion which would enhance the group’s performance.
The expansion involves its electronic commerce and payment, advertising and media, and related business including research and development, and software and intellectual property software.
It said the indicative issue price is 8.5 sen per placement share, representing a discount of 9.6% to the five-day weighted average market price up to Feb 28 of 9.4 sen.
Scomi Engineering Bhd and Prasarana Malaysia Bhd have mutually agreed to drop their lawsuits against each other over a contractual disagreement, and signed a new agreement today that will allow Scomi Engineering to complete the construction of a new depot for the Kuala Lumpur Monorail fleet expansion.
Under the new agreement, Scomi Engineering will also be delivering 12 sets of new four-car trains to Prasarana for the project.
Scomi Engineering said this new agreement is a third supplemental contract to a primary agreement that was signed between the two parties in 2011, and is to facilitate the completion of the remaining works agreed under the principal deal, i.e. the delivery of the remaining six sets of the dozen four-car trains.
“Additionally, under this third supplemental contract, both parties have agreed to appoint an independent consultant to resolve all claim issues,” Scomi Engineering said.
Last June, Scomi Engineering dragged Prasarana to the High Court after Prasarana warned it would terminate its contract over alleged dissatisfaction with its work.
IHH Healthcare Bhd has disposed of a 6.07% stake in India’s Apollo Hospitals Enterprise Ltd, reducing its shareholding in the Chennai-based hospital chain to 4.78%.
IHH said it stands to gain RM312 million from the disposal of the 8.4 million Apollo shares for 10.7 billion rupees (RM710.9 million) and will use the proceeds for its working capital needs.
There were multiple purchasers, almost all of which were institutional shareholders, IHH said. The disposal is part of its ongoing review of its investment portfolio to maximise return to its stakeholders.
Sumatec Resources Bhd’s associate Semua Shipping Sdn Bhd has received a legal notice from Malayan Banking Bhd (Maybank) for allegedly defaulting on loans totalling RM121.4 million.
In a filing with Bursa Malaysia, Sumatec said it received the notice yesterday after Semua Shipping defaulted on six term loans for six vessels and one overdraft facility with Sumatec as guarantor.
The oil and gas provider said it will respond to Maybank’s solicitors through its own lawyers, and will make further announcements when it receives any legal advise from its solicitors.
Separately, Sumatec said its non-executive director Chan Yok Peng, 65, has resigned due to personal matters. Chan was Sumatec managing director from 2003 to 2013 before being redesignated as a non-independent non-executive director in 2013.
Hock Seng Lee Bhd (HSL) has today received a letter of acceptance from the Sewerage Services Department Sarawak (Jabatan Perkhidmatan Pembentungan Sarawak) for a wastewater treatment plant and sewer networks project in Miri for RM333.07 million, via an open tender exercise.
The marine engineering specialist said the scope of works for the contract will, among others, include the construction and commissioning of the wastewater treatment plant, and sewer networks as well as property connections.
The contract will commence on March 30, and will last for 48 months.
Nexgram Holdings Bhd's unit Intra Binaraya Sdn Bhd (IBSB) received an offer from Oriental Mace Sdn Bhd (OMSB) to undertake projects worth US$77 million (RM338.8 million) in total.
Nexgram said IBSB was issued an offer letter dated Feb 11 to be appointed as the principal contractor to undertake projects listed in the engineering, procurement and construction contracts (EPC projects) and supplemental agreements entered into between AJ Biologics Sdn Bhd, AJ Research & Pharma Sdn Bhd and AJ Research Center Sdn Bhd (AJ Group) with OMSB.
The projects are to build a vaccine manufacturing plant and a pharmaceutical and neutraceutical manufacturing plant, as well as to construct a research and development laboratory and formulation development centre in Bandar Baru Enstek, Seremban.
Tiger Synergy Bhd, which aborted a cash call days earlier without specifying why, is selling 28 plots of freehold land in Kuala Pilah, Negeri Sembilan, for RM2 million to use as working capital for the group.
The tracts are located in Ampang Tinggi. Tiger Synergy is expecting to net a gain of RM476,766 from the sales, which it expects to be completed within four months from today.
http://www.theedgemarkets.com/my/article/ppb-mudajaya-puc-founder-scomi-engineering-ihh-sumatec-hock-seng-lee-nexgram-and-tiger
