KUALA LUMPUR (July 3): Based on corporate announcements and news flow today, companies that may be in focus tomorrow, Tuesday (July 4), may include: Yinson, Tiger Synergy, Chin Hin, Top Glove, Bina Puri, FGV, AirAsia, Mah Sing, ECS ICT, Alam Maritim and Texchem.
PTSC Asia Pacific Pte Ltd (PTSC AP), which is 49% owned by Yinson Holdings Bhd and 51% by PetroVietnam Technical Services Corp (PTSC), has accepted PTSC's offer to continue to deploy its floating production storage and offloading (FPSO) unit for petroleum operations within the Lam Son oilfield offshore Vietnam.
It said the offer is valid for a maximum period of six weeks from June 30.
The petroleum operations in the Lam Son field will be undertaken by PetroVietnam Exploration Production Corporation Ltd (PVEP), which is a wholly-owned subsidiary of Vietnam's national oil and gas firm PetroVietnam.
Separately, Yinson has proposed the disposal of a 26% stake in its indirect wholly-owned unit Yinson Production (West Africa) Pte Ltd to a Japanese consortium.
Yinson expects the price tag to be in the range of US$104 million to US$117 million.
Yinson said it has entered into a heads of agreement with the consortium to facilitate the disposal, and with the understanding that the two sides will form a collaboration in relation to the contract for the chartering, operation and maintenance of a FPSO facility by Eni Ghana Exploration and Production Ltd in Ghana.
It said the FPSO produced its first oil on May 22, three months ahead of schedule.
Tiger Synergy Bhd, together with landowner LJ Development (KL) Sdn Bhd, will undertake a residential or commercial development with an estimated gross development value (GDV) of RM80 million in Klang, Selangor.
Tiger Synergy's wholly-owned subsidiary Pembinaan Terasia Sdn Bhd had on Friday signed a memorandum of understanding (MoU) with LJ Development for the proposed project.
Under the MoU, the two companies agreed to negotiate exclusively the detailed terms and conditions of the proposed JV with the intention to finalise and enter into an agreement within six months.
It said the proposed JV allows it to expand the operation of its property segment and to complement company's existing business activities.
Building materials distributor Chin Hin Group Bhd has proposed the acquisition of 45% stakes in three companies for RM24.8 million to boost its involvement in the solar power investment business.
It said the proposed acquisitions would also grant the group opportunities to expand its solar power investment business regionally to tropical countries.
Today, it inked a MoU with the shareholders of the three companies — Atlantic Blue Sdn Bhd, Powertrack Sdn Bhd and Solarvest Energy Sdn Bhd — to undertake the acquisitions.
Atlantic is principally involved in the installation of equipment for generation of electricity via solar power energy, the sale of electricity through solar generation and property investment holdings.
Powertrack and Solarvest are associate companies of Atlantic, and are principally involved in the engineering, procurement and construction of solar energy.
It said the purchase consideration was arrived based on the unaudited profit after tax of the three companies for the financial year ending March 31, 2017 (FY17) and profit guarantees of up to RM10 million for FY18 and FY19 to be provided by the shareholders.
Top Glove Corp Bhd has disposed of its 36.84% indirect stake in Singapore-based Sonic Clean Pte Ltd, which provides cleanroom washing services and supplies to industries ranging from hard disk drive to medical industries.
The remaining 63.16% stake in Sonic Clean is held by Unisteel Technology Ltd.
Top Glove's indirect subsidiary Medi-Flex Pte Ltd together with Unisteel had on June 30 entered into a conditional sale and purchase agreement with Mclean Technologies Pte Ltd to sell all 2.02 million shares of Sonic Clean for S$2.
It said the proposed disposal is part of the group's strategic business rationalisation plan to streamline its business.
Bina Puri Holdings Bhd has received the green light from the Indonesia Stock Exchange (IDX) for the listing of its subsidiary PT Megapower Makmur Tbk, expected to take place on Wednesday.
It said the issue price for the PT Megapower shares has been fixed at 200 rupiah (6 sen).
The proposed listing involves an offering of up to 245.1 million new shares for subscription or purchase at the offer price.
Felda Global Ventures Holdings Bhd (FGV) said its board of directors has decided to refer its group president and chief executive officer Datuk Zakaria Arshad and group chief financial officer Ahmad Tifli Mohd Talha to a domestic inquiry panel.
FGV said the board had "evaluated and considered" the two officers' replies to their show-cause letters and decided to refer their cases to the panel.
The show-cause letters were issued over alleged irregularities at one of FGV's subsidiaries, Delima Oil Products Sdn Bhd, which had dealings with Dubai-based firm Safitex Trading LLC.
"The board has established an appropriate panel from within FGV whereby the members of the panel shall not consist any of FGV directors," FGV said.
"During the domestic inquiry process, the board will not comment or interfere with the process. The board shall only provide the necessary announcement when the panel has presented its findings to the board and a resolution has been reached," it added.
FGV said the domestic inquiry process is expected to take about two months to complete.
Low-cost carrier AirAsia Bhd will begin offering daily, non-stop service between Nha Trang, Vietnam, and Kuala Lumpur on Sept 14.
AirAsia said the new service will mark the airline's fourth route into Vietnam, after Ho Chi Minh City, Da Nang and Hanoi.
Mah Sing Group Bhd said today that it plans to develop an integrated development in Batu 2.5, Jalan Cheras here, which will have an estimated GDV of RM2.2 billion.
It is also planning to build a business park with an estimated GDV of RM150 million on a 10.89-acre piece of freehold land in Bukit Mertajam, Penang.
Meanwhile, Mah Sing said it has signed an agreement to acquire Cordova Land Sdn Bhd, which has an offer accepted by Kuala Lumpur City Hall (DBKL) to purchase the 11.233-acre prime land in Jalan Cheras.
The land is located opposite Courts Mammoth along Jalan Cheras here and 1.8km from the Sunway Velocity Mall, it added. It currently houses a surau, Kompleks Belia Bandaraya and the Stadium Badminton Kuala Lumpur, which will be reconstructed as part of Cordova's corporate social responsibility.
"The total consideration of up to RM263.48 million or RM538 per sq ft after taking into consideration the share sales, land cost and estimated reconstruction and upgrading cost estimated at RM25 million allocated for Stadium Badminton Kuala Lumpur is at a discount from the indicative market value of the surrounding lands, as per an indicative valuation by independent valuation company Rahim & Co for the land at RM333.18 million or RM680 per sq ft," Mah Sing said.
Information and communications technology (ICT) distributor ECS ICT Bhd's unit ECS Pericomp Sdn Bhd has been appointed as an authorised distributor for Palo Alto Networks in Malaysia and Brunei.
ECS ICT chief executive officer Soong Jan Hsung said the appointment is a testament to the value that the company brings to ICT vendors, enabling them to leverage its ecosystem of channel system integrators and strengthen their market presence in Malaysia and Brunei.
Malaysian Rating Corp Bhd has downgraded its rating on marine services provider Alam Maritim Resources Bhd's RM500 million Sukuk Ijarah Medium-Term Notes to BB+IS from BBB+IS.
It said the rating remains on MARCWatch Negative.
MARC had on May 30 placed the sukuk rating on MARCWatch Negative to highlight the sukuk's increased vulnerability to missed payments or a distressed exchange, following the company's announcement it had sought the Corporate Debt Restructuring Committee's (CDRC) assistance to mediate negotiations with its creditors.
Today's downgrade to BB+IS reflects heightened default risk with respect to a scheduled RM30 million principal sukuk payment due on July 6.
MARC said Alam Maritim continues to remain under an informal standstill arrangement with its financiers, the continuation of which is conditional upon the company submitting a proposed debt restructuring scheme that is in compliance with the CDRC's restructuring principles by end-July 2017.
MARC said Alam Maritim has not shared any plan on how it intends to address the upcoming payment, leading it to believe that there is a very high likelihood Alam Maritim will be unable to meet its RM8.3 million balance sinking fund obligations towards the upcoming profit and principal payments on the sukuk.
MARC said it will lower its rating on these sukuk notes to DIS if Alam Maritim fails to pay the scheduled RM30 million payment as it comes due.
The rating agency said it will resolve the MARCWatch if Alam Maritim makes the necessary payment and provides a credible plan to meet its debt obligations over the next six months.
Texchem Resources Bhd announced that Dim Sum Delight Sdn Bhd, the operator of two Michelin-star Tim Ho Wan restaurants in Malaysia, has ceased business operations due to challenging future prospects.
Texchem owns 51% in Dim Sum Delight, while the remaining 49% reportedly belongs to a Malaysian company owned by Angel Chong and Kelvin Khoo.
For the financial year ended Dec 31, 2016, Dim Sum Delight incurred a loss of RM895,642, and "is not expected to turn around in the near future", Texchem said.