KUALA LUMPUR (March 10): Here is a brief recap of some corporate announcements that made news on Friday (March 10): Pecca Group Bhd, Insas Bhd, Kumpulan Perangsang Selangor Bhd, Classita Holdings Bhd, Betamek Bhd and Cape EMS Bhd.
Pecca Group Bhd, through its wholly-owned subsidiary Pecca Leather Sdn Bhd, has entered into a shares transfer agreement on March 8 for the acquisition of an 80% equity interest in PT Gemilang Maju Kencana (GMK). The price tag of the acquisition is Indonesian rupiah 6.4 billion or approximately RM1.88 million, which will be fully satisfied by cash via internal funding. GMK, similar to Pecca, is also involved in the business of upholstery leather wrapping and seat covers for the automotive industry in Indonesia.
Insas Bhd announced its share sale and purchase agreement (SSPA) with furniture maker SYF Resources Bhd has become unconditional. The agreement was signed to facilitate Insas' proposal to list its stockbroking arm M&A Securities Sdn Bhd through a reverse takeover (RTO) of SYF Resources. "On behalf of the board of Insas, M&A is pleased to announce that all the conditions precedent in the SSPA have been fulfilled, and the SSPA has become unconditional.”
Kumpulan Perangsang Selangor Bhd (KPS) has entered into a Memorandum of Understanding (MOU) to explore the possibility of procuring solar energy from a consortium comprising Worldwide Holdings Bhd and two other firms. The parties will look into signing a long-term corporate green power agreement between KPS and its participating subsidiaries as the off-taker and the consortium via a special purpose vehicle as the provider. The consortium — which also includes Dynac Sdn Bhd and Majulia Sdn Bhd — will submit a solar power application to the Energy Commission of Malaysia by March 20.
Classita Holdings Bhd’s incumbent board of directors is distancing itself from the alleged RM30.7 million misappropriation of funds that is currently under police investigation. The group, formerly known as Caely Holdings Bhd, said in a media release on March 10 that the alleged abuse of funds involving its subsidiary Caely (M) Sdn Bhd were done via transactions between 2013 and 2021, before the appointment of the current board of directors. “As soon as they were successfully appointed by the company on Aug 29, 2022, the board took immediate actions within reasonable measures to safeguard the company and the shareholders’ interest,” it said.
Betamek Bhd, the ACE Market-listed electronic manufacturing services (EMS) provider, has inked a deal to expand its vehicle electronic product offerings. The Memorandum of Understanding (MOU) entered into with Singapore-based semiconductor company Krakatoa Technologies Pte Ltd is aimed at exploring potential collaboration to develop a battery management system-on-a-chip for electric vehicles. Managing director Mirzan Mahathir said the collaboration is consistent with the group's overall corporate strategy to further expand its business to provide valuable experience and know-how in the automotive EMS market.
Another EMS firm Cape EMS Bhd has made an impressive debut on Bursa Malaysia's Main Market on Friday (March 10), opening at a premium of 52 sen or 57.8% over the initial public offering (IPO) price of 90 sen. The counter went on to close at the day's high of RM1.50 for a gain of 60 sen or 66.67% over the IPO price. Its lowest price during the day was RM1.32. Cape EMS was the day’s most active stock with 253.58 million shares traded. Cape EMS managing director and chief executive officer Tee Kim Chin said the group intends to capitalise on its listing status to further fuel its growth trajectory. “With the additional production capacity that we intend to purchase using our IPO proceeds, we believe that we are on track to expedite our growth in the EMS industry to cater to the expected increase in demand for EMS services, driven by the projected global growth of the semiconductor and electronics market,” she said.