Stone Master, Wintoni, HIL Industries, MISC, RHB and AMMB

KUALA LUMPUR (June 2): Based on corporate announcements and news flow today, companies that will be in focus next Monday (June 5) may include: Stone Master Corp Bhd, Wintoni Group Bhd, HIL Industries Bhd, MISC Bhd, RHB Bank Bhd and AMMB Holdings Bhd.

Stone Master Corp Bhd has obtained an interim injunction blocking its largest shareholder from giving effect its extraordinary general meeting (EGM) held on Tuesday that passed resolutions removing two top executives and appointing eight new directors.

Stone Master said the ex-parte order (initiated by one party in the boardroom feud) was issued by the High Court today. The inter partes hearing (involving both parties in the dispute) will be held on June 7.

The loss-making stoneware manufacturer said today’s order also restrains Datuk Karen Lee Fong Yin, who owns a 22.29% stake in the group, and parties acting in concert with her, from entering or causing any disturbance to Stone Master’s office.

Wintoni Group Bhd said today that Chong Seng Foo has pulled out from the directorship nomination within its board of directors.

“I regret to inform you that I wish to pull out from the nomination to be [appointed] as a director in Wintoni [at] the [upcoming] extraordinary general meeting (EGM), due to some unforeseen and [un]avoidable personal circumstances,” Chong said in a letter addressed to Wintoni’s company secretary.

The Practice Note 17 company had received on May 15, a requisition from two shareholders of the company to convene an EGM, seeking to replace three board members.

Property developer HIL Industries Bhd, which saw its share price hit another all-time high today, has proposed a bonus issue with free detachable warrants.

The bonus issue of 55.74 million shares will be offered on the basis of one bonus share, together with one warrant, for every five existing shares held, said the group in a filing today.

The warrants will be convertible to HIL shares on a one-for-one basis, with a 10-year tenure from the date of issuance.

Sabah Shell Petroleum Co Ltd has filed a statement of defence and counterclaim against MISC Bhd's wholly-owned subsidiary Gumusut-Kakap Semi-Floating Production System (L) Ltd (GKL), seeking US$583 million (RM2.5 billion).

MISC said Sabah Shell had stated in the counterclaim that it refutes GKL's earlier claims and is counterclaiming against the company for alleged defective work, alleged limited functionality of the Gumusut-Kakap Semi-Floating Production System (Semi-FPS), liquidated damages and a refund of the full amount paid to GKL under the adjudication decision rendered in the adjudication proceeding.

GKL was awarded US$255 million in February this year, after it obtained an adjudication decision in its favour in its case against Sabah Shell. GKL initiated the legal action last September, after it fell into contractual disputes with Sabah Shell over outstanding additional lease rates, payment for completed variation works and other associated costs for the construction of the Semi-FPS, which is for crude oil production.

S&P Global Ratings said its rating on RHB Bank Bhd (BBB+/Stable/A-2; axA+/axA-1) has not been immediately affected by the bank’s proposed merger with AMMB Holdings Bhd.

“Any rating impact from the potential merger of RHB, and AMMB Holdings — the holding company of AmBank (M) Bhd, would depend on the final terms, including the structure of the merger, pricing, and financial profile of the surviving entity,” the ratings agency said in a statement today.

On June 1, Bank Negara Malaysia gave its green light to both lenders, to negotiate terms of the merger. They have an exclusivity agreement until Aug 30 to negotiate the deal, which RHB expressed it hopes could be done at a one-time book value (BV).

Pricing is one of the key determinants of whether the merger will proceed, said S&P.

S&P pointed out that RHB’s acquisition of AMMB, the country’s sixth biggest lender by asset size, will not improve RHB’s ranking at fourth place. “But with combined assets of RM368 billion, the merged entity will significantly close the gap with third-largest Public Bank Bhd, which has assets of RM390 billion,” it added.