KUALA LUMPUR (March 7): Based on corporate announcements and news flow today, the companies that may be in focus on Wednesday (March 8) could include the following: TIME dotCom, Hap Seng Consolidated, Tenaga, Priceworth International, IHH Healthcare, Mesiniaga, Bursa Malaysia and Palette Multimedia.
Fibre optic network service provider TIME dotCom Bhd plans to acquire a 37% stake in Thai-listed fixed line telecommunications operator for THB1.47 billion or RM186.7 million, into which it intends to pump in at least another RM47 million on completion of the stake buy.
The conditional partial voluntary tender offer for Symphony Communication Public Company Ltd (SYMC), which was made by TIME today via a letter served to SYMC's board of directors, translates to an acquisition price of THB12.2 per share. SYMC shares settled unchanged for the day at THB11.90 on the Thai Exchange.
According to TIME's stock exchange filing, the stake buy will be undertaken via its wholly-owned subsidiary, TIME dotCom International Sdn Bhd.
On completion of the stake buy, TIME said it will propose that SYMC undertake a rights offering to raise about THB1 billion, to which TIME is committed to take up its pro rata portion in accordance with its stake, with the option of participating for a higher portion — though subject to, at all times, the 49% foreign shareholding limit in SYMC.
This will work up to an undertaking of at least THB370 million or about RM47 million. The need for further capital injection is to fund SYMC's existing and future business expansions and growth, said TIME.
Hap Seng Consolidated Bhd plans to sell its wholly-owned transportation and logistics services arm Hap Seng Logistics Sdn Bhd for RM750 million cash, with the proceeds to be used to pare down the group's borrowings and for working capital.
In a bourse filing, Hap Seng Consolidated said the original cost of investment in Hap Seng Logistics totalled some RM250 million.
The group today entered into a conditional share sale agreement with Hong Kong-based LSH Logistics Ltd (LSHL) for the disposal of 250 million shares representing 100% equity interest in Hap Seng Logistics to LSHL.
The proposed disposal is deemed a related party transaction as Tan Sri Lau Cho Kun is a major shareholder of LSHL with a 37.68% stake. He is also a 56% major shareholder and director of Gek Poh (Holdings) Sdn Bhd, which holds a 61.43% stake in Hap Seng Consolidated.
Utility provider Tenaga Nasional Bhd has signed a large-scale solar power purchase agreement (PPA) with Gading Kencana Development Sdn Bhd for a 30 MWac plant in Bidor, Perak.
In a filing with Bursa Malaysia, Tenaga said Gading Kencana will design, construct, own, operate and maintain the solar photovoltaic energy generating facility.
Gading Kencana is a wholly-owned unit of Gading Kencana Sdn Bhd, which produces solar energy and engages in solar panel installation.
Tenaga said the PPA, which has an expected commercial operation date of June 28, 2018, governs the obligations of the parties to sell and purchase the energy generated by the facility for a period of 21 years from the commercial operation date.
Wood products manufacturer Priceworth International Bhd has garnered the attention of RHB Group founder Tan Sri Abdul Rashid Hussain, who is committing to take up a 6.4% stake in the enlarged share capital of the company via a special issuance of new shares.
To facilitate the equity participation, Priceworth raised the quantum of its planned special issuance of shares to 215.64 million new shares or 30% of the group's enlarged share capital, from 141.25 million shares or 20% previously, to raise up to RM21.19 million from third party investors.
While Abdul Rashid will take up 6.4% in the enlarged capital of Priceworth, his wife Puan Sri Emilahani Yang Mohd Yatim will take up 3.6%. Maha Gayabina Sdn Bhd will end up with 20%. Priceworth inked a conditional share subscription agreement with the trio today.
The proposed special issue is subject to regulatory and shareholders' approval at an extraordinary general meeting to be convened.
The special issuance is to raise capital to fund Priceworth's RM260 million acquisition of a 100-year concession right to carry out harvesting, forest management and rehabilitation, and industrial tree planting within a 101,161-hectare forest reserve area in Trus Madi, Sabah.
IHH Healthcare Bhd's indirect 30%-owned Clinical Hospital Acibadem Sistina Skopje has established two subsidiaries in Macedonia to provide outpatient medical services.
In a Bursa Malaysia filing, IHH, the world's second largest healthcare group by market capitalisation, said Clinical Hospital Acibadem Sistina Skopje had established Ordinacija po Interna Medicina Acibadem Sistina Bitola 24 and Poliklinika Acibadem Sistina Bitola 27 in Macedonia on Feb 15 and 17, respectively.
Mesiniaga Bhd, which has been sued by Amanah Raya Bhd over a dispute on the obligations of a contract, says it could face a potential liability of RM8.2 million, including court-awarded costs, if it loses the case.
In a filing with Bursa Malaysia, the ICT solutions provider said the potential liability is based on claims put forth by Amanah Raya.
Mesiniaga announced the suit yesterday, saying it was over a dispute on the obligations of the contract executed by both parties on April 23, 2015 relating to the implementation of Amanahraya Integrated System with integration of solution.
Mesiniaga said it has a strong defence and is discussing with its solicitor to enter defence within 14 days.
Employee Provident Fund (EPF) has continued to trim its stake in Bursa Malaysia Bhd, after selling 500,000 shares on March 3, leaving it with just 26.56 million shares or a 4.95% stake, according to a stock exchange filing.
EPF has been selling shares in Bursa Malaysia since early December last year, when EPF sold a 1.21% stake or 6.48 million Bursa Malaysia shares that month. From January till now, it has offloaded another 1.29% or 6.94 million shares.
In 2016, EPF's shareholding in Bursa Malaysia was reduced by 0.9% stake or 4.81 million shares to 6.25% stake or 33.5 million shares by end-December, from 7.14% or 38.31 million shares held as at Jan 1.
Wireless network solution provider Palette Multimedia Bhd told Bursa Malaysia that it has entered into a RM4.07 million contract with Trade House Atlantis Ltd and CJSC Gollard for the sale of server and hardware related products.
In a separate statement, Palette said the deployment of server and hardware related products is expected to be completed within the next three months.