AAX, IOI, Hibiscus, Gamuda, ACO, Straits Energy, Southern Cable, TNB, Haily, Omesti, Inari, MyEG, Asia Poly and Karyon
KUALA LUMPUR (Oct 18): Based on corporate announcements and news flow on Monday, companies in focus on Wednesday (Oct 20) may include: AirAsia X Bhd (AAX), IOI Corp Bhd, Hibiscus Petroleum Bhd, Gamuda Bhd, ACO Group Bhd, Straits Energy Resources Bhd, Southern Cable Group Bhd, Tenaga Nasional Bhd (TNB), Haily Group Bhd, Omesti Bhd, Inari Amertron Bhd, My EG Services Bhd (MyEG), Asia Poly Holdings Bhd and Karyon Industries Bhd.
AirAsia X Bhd (AAX) is proposing to pay just 0.5% of debt owed to each of its creditors and to terminate all existing contracts so that it can restructure RM33.65 billion (US$8.1 billion) of liabilities, a document seen by Reuters shows. The low-cost long-haul airline, a sister carrier to cash-strapped AirAsia Group Bhd, said it had set Nov 12 for creditor meetings to vote on the restructuring proposal.
IOI Corp Bhd’s subsidiary IOI Investment (L) Bhd has invited holders of its outstanding US$600 million 4.375% notes due 2022 to either submit tenders to purchase their notes for cash on the terms and in the tender offer to be despatched to them. IOI Corp said the offer, in conjunction with the issuance of the new notes, is part of the group’s proactive management of its funding and capital structure. It also noted that notes purchased by the IOI Investment pursuant to the offer are expected to be cancelled and will not be re-issued or resold.
Moody's Investors Service has assigned a provisional (P)B1 corporate family rating (CFR) to Hibiscus Petroleum Bhd. Moody's also assigned a provisional (P)B1 rating to the proposed US dollar-denominated senior secured bonds to be issued by Hibiscus Capital Ltd, a wholly-owned subsidiary of Hibiscus Petroleum. According to Moody’s, the proposed bonds are irrevocably and unconditionally guaranteed by Hibiscus Petroleum and some of its subsidiaries, and are secured by capital stock of Hibiscus Capital, rights in the interest reserve account and rights in the escrow account.
Gamuda Bhd’s wholly-owned sub-subsidiary in Vietnam, Gamuda Land HCMC Joint Stock Company, has acquired 5.6 hectares of land in Binh Duong New City, Vietnam for US$53.88 million. The piece of land was acquired from Binh Duong Trade and Development Joint Stock Company — a state-owned company established in 2015 and listed on Ho Chi Minh City Stock Exchange. Notably, Gamuda acquired the tract of land at a discount of US$2.3 million, below its market value of US$56.1 million. The purchase consideration will be funded through internally generated funds.
ACO Group Bhd is teaming up with electric vehicle (EV) charging specialist EV Connection Sdn Bhd to install a direct current fast-charging station at ACO Group’s new headquarters in Johor Baru, as part of its initiatives to tap into the green technology sector. To capitalise on rising growth prospects of the EV space, ACO Group has proposed to acquire a 10% stake in EV Connection for RM1 million cash.
Straits Energy Resources Bhd said it plans to acquire a vessel for US$3.5 million (RM14.55 million) to expand the business of its 67%-owned unit Straits Marine Fuels and Energy Sdn Bhd, especially in the supply of low sulphur fuel oil. The oil trading and fuel bunkering service provider is acquiring Empower, which has a gross tonnage of 4,991 tonnes and death weight tonnage of 7,820 tonnes, from Adamas Marine Sdn Bhd. The addition of Empower will enlarge the group’s asset base and provide it with added flexibility in respect of its allocation and utilisation of vessels in undertaking its business activities.
Cable and wire manufacturer Southern Cable Group Bhd has secured an RM18.5 million contract from Tenaga Nasional Bhd (TNB) for the supply of underground cables and conductors. The group said that its wholly-owned subsidiary Southern Cable Sdn Bhd would supply and deliver the underground cables and conductors for the distribution network division of TNB. The tenure of the contract is for a period of six months from October.
Haily Group Bhd has bagged a contract worth RM24.5 million from Meridin East Sdn Bhd for the construction and completion of a terraced residential project in Plentong, Johor Bahru. The project comprises 155 double-storey terrace houses, one single-chamber TNB sub-station, two double-chamber TNB sub-stations and one main switch station. Haily said the contract awarded by Meridin East is a firm price contract and will not be subjected to any fluctuation in costs and other variations sanctioned under the conditions of contract.
Software and application developer Omesti Bhd has acquired 13.22 million shares in Microlink Solutions Bhd from the open market for RM10.47 million, or an average of 79.2 sen per share.
Omesti said its wholly-owned unit Omesti Holdings Bhd (OHB) acquired the shares, which represents a 1.36% stake in Microlink, between June 2 and Oct 15. Following the acquisition, Omesti via OHB holds 532.44 million shares or 54.87% equity interest in Microlink.
Inari Amertron Bhd has entered into a memorandum of understanding with China Fortune-Tech Capital Co Ltd (CFTC) with the intention to set up a joint venture firm in China to carry out outsourced semiconductor assembly and test (OSAT) manufacturing and related businesses for the Chinese market.
My EG Services Bhd (MyEG) plans to raise up to RM309 million via a private placement. Of the total proceeds of RM309 million, the largest portion of RM175 million has been earmarked for the development of blockchain products and services. A sum of RM60 million has been allocated for the development of healthcare-related services and healthcare-related technology, and another RM60 million for the development of automated driving test and training system and purchase of hardware. Of the balance, RM7.7 million will be used for working capital, while RM6.3 million will be used to bear the estimated expenses of this placement.
Cast acrylic sheet manufacturer Asia Poly Holdings Bhd has ceased to be a substantial shareholder of Karyon Industries Bhd. Asia Poly said it has between May 25 and Oct 15, disposed of 28.42 million shares or a 5.97% stake in Karyon in the open market for RM8.24 million. Following the disposal, Asia Poly is left with 5.5 million shares or a 1.16% stake in Karyon. Asia Poly said it made a gain of RM650,212 from the disposal of the 28.42 million shares. The disposal was carried out after reviewing the overall market conditions, said Asia Poly, adding that proceeds from the disposal will be used for working capital and other investments.