KUALA LUMPUR (Nov 2): Here is a brief recap of some corporate announcements that made news on Wednesday (Nov 2), involving Kossan Rubber Industries Bhd, Maxis Bhd, Axiata Group Bhd, Capital A Bhd, AirAsia X Bhd, Aeon Credit Service (M) Bhd, Kelington Group Bhd, Inta Bina Group Bhd, Media Prima Bhd and Carimin Petroleum Bhd.
Kossan Rubber Industries Bhd’s net profit for the third quarter ended Sept 30, 2022 (3QFY22) plummeted 95.6% to RM23.26 million from RM528.2 million in the same period last year, heavily impacted by lower average selling prices (ASPs) and volume of gloves sold. Revenue declined 56.97% to RM560.52 million from RM1.3 billion due to the decrease in revenue from its gloves and clean-room divisions. For the cumulative nine-month period, Kossan’s net profit plunged 93.95% to RM159.36 million from RM2.63 billion a year prior, as cumulative revenue dropped 68% to RM1.83 billion from RM5.73 billion.
Maxis Bhd will seek the consent of its shareholders to enter into the 5G access agreement with Digital Nasional Bhd (DNB). This comes after Maxis’ board had assessed the governance requirements and in reliance on professional advice believes it is mandatory for Maxis to seek shareholders’ approval, given the nature of the access agreement and the substantial undertaking involved. The telco said it plans to complete the approvals process by January next year, and commercially launch 5G-related products and services shortly after that.
Axiata Group Bhd is exploring options for its Indonesia businesses including combining its broadband and mobile services in the country, according to people with knowledge of the matter. Malaysia’s biggest wireless company is laying the groundwork of a potential deal that would help boost synergies in its Jakarta-listed assets. Options under consideration also include bringing in a minority investor for its infrastructure assets as a way to fuel further investments and growth, the people said, adding that considerations are still at an early stage and there is no certainty that Axiata will proceed with a transaction.
AirAsia Aviation Group Ltd (AAAGL), the holding company of Capital A Bhd, said it has sold all its remaining shares in AirAsia (India) Private Ltd (AAI) to Air India Ltd, an affiliate of Tata Sons Pte Ltd. Capital A said the remaining shares represented 16.33% in AAI. AAAGL is expected to receive gross proceeds of 1.56 billion rupees (RM89.25 million) from the stakes sale.
AirAsia X Bhd (AAX) has been granted an extension of time up to April 28, 2023 to submit its regularisation plan to the regulatory authorities. The Practice Note 17 company had slipped back into the red in its fourth quarter ended June 30, 2022 with a net loss of RM652.52 million.
Aeon Credit Service (M) Bhd has lodged information with the Securities Commission in relation to its Islamic Commercial Papers (ICP) programme of up to RM1 billion in nominal value. Aeon Credit said it intends to make the first issuance of sukuk wakalah under the ICP programme within 90 business days. The proceeds raised from the sukuk would be used to finance disbursements to customers in ordinary course of business, providing consumer financing based on the shariah principle. The proceeds, it added, would also finance expenses relating to the ICP programme and refinance any existing and future Islamic financing facilities.
Two wholly owned subsidiaries of Kelington Group Bhd have bagged new contracts with a combined value of RM262 million. Kelington Technologies Sdn Bhd secured a contract amounting to RM170 million from a leading provider of storage services for bulk liquids and gasses. The contract involves engineering, procurement, and construction works of oil product storage tanks for a tank pit expansion project in Port Klang until October 2024. Kelington Engineering (Shanghai) Co Ltd was awarded a RM92 million contract from an integrated design and manufacturing company specialising in dynamic random-access memory in China for material supply and installation of bulk gas delivery system in Beijing until September 2023.
Inta Bina Group Bhd has bagged an RM87.92 million contract from Eco Sanctuary Sdn Bhd to construct apartments in Kuala Langat district in Selangor. It will be building 107 apartment units in a two-storey walk-up block and 294 units in a 21-storey tower, the group said, adding that the construction period is 24 months commencing from the date of site possession.
Media Prima Bhd has announced it will collaborate with China-based television network Hunan Broadcasting System to co-produce programmes as well as broadcast Hunan-produced content on 8TV. Media Prima group managing director Rafiq Razali said the collaboration marks a momentous occasion as the company embarks on a journey with Hunan to bring special programmes and initiatives to Malaysian viewers.
Carimin Petroleum Bhd’s unit has obtained a contract extension from Petronas Carigali Sdn Bhd for the provision of offshore maintenance, construction and modification services. The contract expired on Sept 19 and will be extended until end-2023. Carimin said terms of the contract remain largely unchanged, except for the expansion in scope of works to cover Peninsular Malaysia's gas areas. The contract price, which was not disclosed, has also been replaced in its entirety effective Sept 20 and is applicable throughout the extension period.