Sime Darby Plantation, Pekat, Siab, OCK, Sapura Energy, CTOS, Awantec, Mobilia, Prolintas, Power Root
Sime Darby Plantation, Pekat, Siab, OCK, Sapura Energy, CTOS, Awantec, Mobilia, Prolintas, Power Root
KUALA LUMPUR (May 8): Here is a brief recap of some business news and corporate announcements that made the headlines on Tuesday:
Sime Darby Plantation Bhd (SDP) has proposed to develop a 1,000-acre Kerian Integrated Green Industrial Park (KIGIP) in its Tali Ayer Estate in Perak, together with its largest shareholder Permodalan Nasional Bhd (PNB). A joint proposal was submitted to the Ministry of Investment, Trade and Industry (Miti) in February. The solar farms for KIGIP will be owned and operated by SDP. — Sime Darby Plantation to co-develop Kerian Integrated Green Industrial Park with PNB
Pekat Group Bhd has signed a memorandum of understanding (MOU) to acquire a stake in switchgears supplier EPE Switchgear (M) Sdn Bhd from Apex Power Industry Sdn Bhd. The final equity interest of EPE Switchgear to be purchased, and the purchase consideration, will be determined later, subject to due diligence. — Pekat inks agreement to acquire stake in local switchgears supplier
Siab Holdings Bhd has signed an underwriting agreement with M&A Securities and NewParadigm Securities Sdn Bhd for the group’s rights issue with warrant exercise, aiming to raise RM91.98 million to complete its RM103.98 million equity fundraising exercise announced last year, in order to finance its acquisition of G7 contractor Taghill Projects Sdn Bhd. It raised RM12 million in December through a special share issue of 100 million shares. — M&A Securities and Newparadigm underwrite Siab’s rights issue with warrants
OCK Group Bhd has entered into a 15-year agreement to lease telecommunications towers in its new market Laos to Best Telecom Co Ltd, which plans to launch its 5G network by year-end. OCK was awarded several clusters of sites located within the metropolitan area of Vientiane and a few major cities in the country. — OCK marks entry into Laos with a 15-year tower leasing deal with Best Telecom
Sapura Energy Bhd’s joint venture companies (JVCos) have bagged contracts worth US$1.8 billion (RM8.53 billion) from Petroleo Brasileiro Sa (Petrobras) to provide engineering services in Brazil via six pipe-laying support vessels. The scope of work includes the provision of subsea engineering, installation and other services. The vessels shall perform all operations required, including the installation of flexible pipes, electric-hydraulic umbilical and power cables. — Sapura Energy JVs win US1.8b contracts for subsea engineering and related services in Brazil
Following its record-breaking 2023, CTOS Digital Bhd posted a 25.6% year-on-year jump in net profit in its first quarter March 31, 2024 (1QFY2024), on higher revenue and lower tax expense thanks to incentive for subsidiary CTOS Data Systems Sdn Bhd (CDS). Net profit rose to RM20.82 million, from RM16.58 million a year ago. Revenue expanded by 20.1% to RM71.58 million from RM59.59 million, as revenue from all customer groups grew with higher sales of CDS reports and digital solutions. CTOS declared a first dividend of 0.64 sen per share, to be paid on July 2. In the corresponding quarter last year, the group paid 0.43 sen. — CTOS kicks off FY2024 with 25% profit jump on higher revenue, lower taxes
AwanBiru Technology Bhd (Awantec) reported a net profit of RM2.14 million for its third quarter ended March 31, 2024 (3QFY2024), from a net loss of RM1.99 million a year ago, as its software and services segment secured major contracts. Revenue jumped more than sixfold to RM55.77 million from RM8.51 million. For its first nine months of FY2024, the group notched a net profit of RM3.33 million from a net loss of RM6.3 million in 9MFY2023. Revenue more than doubled to RM84.39 million from RM34.6 million. — Awantec reports profit in 3Q as revenue jumps on new contracts
Mobilia Holdings Bhd is planning to issue up to 218.75 million free one-for-four warrants (Warrants-B). The warrants’ indicative exercise price is 15 sen apiece, representing a 10% discount to Mobilia’s closing price of 16.5 sen on Tuesday. At 16.5 sen, Mobilia is valued at RM115.5 million. Assuming full exercise of the warrants, the group is expected to raise about RM32.81 million to fund its working capital requirements. — Home furniture maker Mobilia plans one-for-four free warrants
Urusharta Jamaah Sdn Bhd (UJSB) — a special purpose vehicle established under the Ministry of Finance to rehabilitate, restructure and monetise underperforming assets transferred to it from Lembaga Tabung Haji — has emerged as a substantial shareholder in Prolintas Infra Business Trust. UJSB on May 2 acquired 300,000 units in Prolintas Infra, a Main-Market listed trust that owns four highways in Klang Valley. This purchase lifted UJSB’s shareholding in Prolintas to 55.04 million shares, or 5.003%, making UJSB the third largest shareholder in Prolintas Infra, behind Projek Lintasan Kota Holdings Sdn Bhd (PLKH) with its 51.02% stake, and the Employees Provident Fund (EPF) with its 6.18% stake. — Urusharta Jamaah emerges as third largest shareholder in Prolintas Infra
Power Root Bhd’s subsidiaries have successfully regained trademark of its own “Ah Huat” brand for coffee and tea beverages, after reaching an amicable out-of-court settlement with its Indonesian distributor CV Ego Sun Star Sukses Mandiri (CV Ego) following an infringement wrangle that started in 2013. The settlement agreement entails that CV Ego recognises and acknowledges Power Root (M) Sdn Bhd’s (PRM) ownership and rights of the “Ah Huat” trademark. In return, Power Root’s subsidiaries will provide a consideration of IDR725 million (equivalent to approximately RM213,000) to CV Ego, setting aside a separate verdict of RM23.7 million against Power Root. Power Root has settled the legal dispute by paying a total RM1.27 million to CV Ego in order to reclaim the brand. — Power Root reclaims ‘Ah Huat’ brand in Indonesia after decade-long trademark tussle