KUALA LUMPUR (July 8): Based on corporate announcements and news flow today, stocks in focus on Tuesday (July 9) may include: Barakah Offshore Petroleum Bhd, TDM Bhd, Mestron Holdings Bhd, London Biscuit Bhd, Kim Hin Joo (Malaysia) Bhd and APFT Bhd.
Barakah Offshore Petroleum Bhd has found a white knight in Singapore firm Lecca Group Pte Ltd to aid its financial health.
The Practice Note 17 (PN17) firm has proposed to undergo a regularisation plan that will include a share capital reduction, disposal of a pipelay barge for RM88 million, placements of shares to investors, as well as debt settlement schemes.
The proposed regularisation plan have been formulated to address and uplift the PN17 status, with the main objective of returning Barakah to a better financial standing and settlement of scheme creditors, thereby benefiting all stakeholders.
Barakah Offshore lapsed into the PN17 status on May 17.
TDM Bhd, in which the Terengganu state government has a controlling 61.49% stake, has secured a deal to supply 107,500 tonnes of crude palm oil (CPO) over a period of 43 months, that comes with an upfront RM189 million payment.
The medium-term agreement for the supply of 2,500 tonnes of CPO and/or Roundtable on Sustainable Palm Oil (RSPO)-certified CPO per month was signed with Ikhasas CPO Sdn Bhd today.
Of the total upfront payment, TDM intends to use RM52.5 million to pare down debt borrowings, RM125 million for operating expenses and general working capital for its Malaysian and Indonesian plantations, and RM10 million for capital expenditure, with the remaining RM1.5 million to defray expenses relating to the agreement.
Mestron Holdings Bhd's wholly-owned subsidiary Mestron Engineering Sdn Bhd signed a memorandum of understanding (MoU) today, with Platinum Core Solutions Sdn Bhd (PCS), to explore a joint venture involving the conversion of telecommunication signals to boost Internet speed.
Mestron said the MOU provides the company with an opportunity to expand its foothold in the telecommunication infrastructure business by participating in the centralised BBU system project, and would allow the company to leverage on the favourable outlook of the telecommunication infrastructure industry, specifically through the periodic roll out of 5G technology in Malaysia.
London Biscuit Bhd announced today that it has become a Practice Note 17-company, after it defaulted a debt payment of RM9.83 million to Bank of Nova Scotia Bhd on July 3.
The bank has also not been able to provide a solvency declaration to Bursa Malaysia.
The confectionery manufacturer is required to submit a regularisation plan to the Securities Commission Malaysia or Bursa Malaysia within the next 12 months.
Kim Hin Joo (M) Bhd made its debut today on the ACE Market of Bursa Malaysia at a four sen discount over its initial public offering (IPO) price of 43 sen a share.
The stock finished the day eight sen lower at 35 sen, after a total of 35.38 million shares exchanged hands.
The group intends to open four to five new Mothercare outlets within three years of listing, while expanding its toy range with the opening of UK-headquartered The Entertainer toy outlets, as well as revamping its e-commerce platform which hosts the operations of the company's online store.
APFT Bhd said it will be pooling resources with aircraft maintenance academy Malaysian Aviation Training Academy Sdn Bhd (MATA) to form the largest training centre for aviation professionals in Malaysia.
A memorandum of business collaboration agreement was signed today, where APFT and MATA will be sharing their resources and knowledge to facilitate the application of various licenses.
The licenses, under Civil Aviation Authority of Malaysia, include Approved Flying Training Organisation, Maintenance, Repair And Overhaul, and Air Operator Certificate.