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Singapore Investment


K Seng Seng, HLI, APB, Bahvest, Ewein, Pharmaniaga, Tomypak, Sapura, Serba Dinamik, JAG, MyEG, SEB, UOA and Sapura Industrial

KUALA LUMPUR (June 14): Here is a brief recap of some corporate announcements that made the news on Tuesday (June 13) involving K Seng Seng Corp Bhd, Hong Leong Industries Bhd, APB Resources Bhd, Bahvest Resources Bhd, Ewein Bhd, Pharmaniaga Bhd, Tomypak Holdings Bhd, Sapura Energy Bhd, Serba Dinamik Holdings Bhd, JAG Bhd, MyEG Services Bhd, Seremban Engineering Bhd, UOA Development Bhd and Sapura Industrial Bhd.

K Seng Seng Corp Bhd (KSSC) is seeking to raise up to RM41.47 million from a private placement to finance the acquisition of a majority stake in a precision machined parts manufacturer, and for working capital. The placement entails the issuance of up to 34.56 million new shares, representing not more than 20% of the group's issued shares, to independent investors to be identified later. KSSC assumed the issue price of the new shares at RM1.20, a discount of 6% to the five-day volume weighted average market price of the group’s shares of RM1.277. Of the RM41.47 million gross proceeds, RM21.25 million will be allocated for working capital for payment of overheads while another RM19.12 million will go towards funding the acquisition of a 51% stake in Metalmach Micro Technology Sdn Bhd.

Hong Leong Industries Bhd (HLI) has proposed to dispose of its wholly-owned fibre cement products manufacturing subsidiary at an indicative price of RM79.5 million. Hume Cemboard has two plants located in Petaling Jaya and Chemor, Perak, the disposal will enable the group to exit its non-core fibre cement board business. HLI said it will secure a net gain of RM12.9 million from the sale to Saint-Gobain Malaysia Sdn Bhd at the indicative price, with the final sale price to be determined later.

Shares of APB Resources Bhd hit limit-up on Wednesday after Press Metal Aluminium Holdings Bhd’s co-founder and executive director Datuk Koon Poh Tat emerged as its new substantial shareholder after Koon bought a 5.72% stake or 6.35 million shares on the open market on Tuesday. The transaction price was not disclosed. However, based on APB Resources’ closing price of RM2.25 on Tuesday, the block of shares would have cost Koon RM14.29 million.

Southsea Gold Sdn Bhd has accused Bahvest Resources Bhd’s new management of providing misleading information about the firm at its extraordinary general meeting (EGM) on Tuesday (June 13). At the meeting, Bahvest's new management claimed that just before Lo Fui Ming exited the group, the Bahvest founder transferred RM13 million to Southsea as a non-refundable deposit to commence negotiations about compensation for alleged wrongful occupation and trespass on a plot of leased land. However, Southsea rejected the claim, saying the RM13 million was actually a negotiated compensation, reduced from the RM20.4 million sought in the original letter of demand.

Ewein Bhd has received notice of an unconditional mandatory takeover offer (MTO) at 60 sen per share from the managing director and major shareholder of Nationgate Holdings Bhd Ooi Eng Leong. Ooi made a move to acquire all the remaining 149.01 million shares or a 49.41% stake not already owned by him and persons acting in concert (PAC), Datuk Seri Hong Yeam Wah and Goh Kiang Teng, for a total RM89.41 million. The takeover offer came after Ooi raised his stake in Ewein from 3.84% to 43.82% after buying a 39.99% stake from Hijauwasa Sdn Bhd for RM72.36 million.

Practice Note 17 (PN17) company Pharmaniaga Bhd clarified that a significant portion of its proposed private placement proceeds has been earmarked for payments to its suppliers and trade creditors. Pharmaniaga, which has booked negative net operating cash flow since 2020, intends to issue up to 131.02 million shares for the placement, with an indicative price of 34 sen per share or RM44.54 million. The amount was allocated primarily for its working capital, while the remaining RM336,000 are the estimated expenses of the exercise, according to its Tuesday (June 13) filing.

Tomypak Holdings Bhd has revived its efforts to purchase a stake in flexible plastic packaging manufacturer and seller EB Packaging Sdn Bhd, after earlier Memoranda of Understanding for the deal lapsed in November. Tomypak's unit Tomypak Flexible Packaging Sdn Bhd (TFP) entered into two conditional share and sale agreements with the four vendors of EB Packaging to acquire their stakes in the company amounting to 70% for RM73.5 million in cash. TFP also entered into a call and put option agreement with three of the vendors to acquire the remaining 30% stake for a maximum of RM31.5 million, and a shareholders' agreement with the same vendors and EB Packaging.

Sapura Energy Bhd’s external auditor Ernst & Young PLT has expressed its unqualified opinion with material uncertainty relating to the group's going concern, in respect of the financial statements for the year ended Jan 31, 2023 (FY2023). An extract of the auditor's report noted that the group and the company posted a net loss of RM3.16 billion and RM3.67 billion respectively for FY2023, and that their current liabilities exceeded their current assets by RM12.66 billion and RM1.75 billion respectively.

Troubled oil and gas company Serba Dinamik Holdings Bhd posted its largest quarterly net loss of RM972.91 million for the third quarter ended March 31, 2023 (3QFY2023), mainly due to impairment of trade receivables amounting to RM865.1 million arising from the projects that the company was unable to fulfill. Loss per share increased to 26.1 sen from 11.7 sen. Quarterly revenue tumbled 97% to RM6.18 million from RM205.48 million, due to lower contribution from all business divisions. Operations and maintenance (O&M) segment’s revenue contracted 97.42% to RM5 million from RM193.74 million, while engineering, procurement, construction and commissioning posted a 92.24% drop in revenue to RM544,000 from RM7.01 million.

JAG Bhd said its wholly-owned recycling unit, Jaring Metal Industries Sdn Bhd (JMI), has been appointed as the service partner of Atreon Holdings Sdn Bhd for spent catalyst treatment processing and reworking at JMI’s facilities in Malaysia. The minimum total value of the three-year contract is RM27.6 million.

MyEG Services Bhd has inked a Memorandum of Understanding (MOU) to collaborate on the use of electric motorcycles and placement of battery swapping stations at designated locations for a trial period. The two-year MOU was signed with Oyika Green Technologies Sdn Bhd (OGT), a wholly-owned unit of Yinson Mobility Sdn Bhd, which in turn is an indirect wholly-owned subsidiary of Yinson Holdings Bhd. OGT will supply electric motorcycles to MyEG as a free trial for up to 30 days, while  MyEG will provide designated locations as agreed between the parties for the trial period, for OGT to deploy the battery swapping stations.

Seremban Engineering Bhd and Negeri Sembilan's investment arm NS Corp have entered into a joint venture agreement for the proposed development of three parcels of concession land, which includes the Jetty Arang, that cumulatively measure 26.381 acres in Port Dickson. Both parties have also entered into a subscription and shareholders agreement (SHA) for the incorporation of a special purpose vehicle (SPV) to implement the joint venture. Seremban Engineering holds an 80% stake in the SPV while NS Corp will hold the remaining 20%.

Property developer UOA Development Bhd has proposed to venture into the food & beverages (F&B) business with its units Armada Hartasegar Sdn Bhd and Regenta Development Sdn Bhd entering into a term sheet agreement with Hokkien Peng Restaurant Group Sdn Bhd and Hoteland Sdn Bhd. Armada will provide the set-up cost of the business which amounts to RM21.17 million by way of subscription of redeemable preference shares (RPS) in Hoteland at a subscription price of RM1 per RPS. As such, Hoteland will become a 51%-owned subsidiary of UOA.

Sapura Industrial Bhd said its independent director Tan Sri Dr Azmil Khalili Khalid has been redesignated as the group's deputy chairman with effect from Wednesday (June 14). Azmil, 62, was appointed as independent and non-executive director in March earlier this year.


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