KUALA LUMPUR (Sept 5): Here is a brief recap of some corporate announcements that made the news on Tuesday, involving KNM Group Bhd, Malaysian Bulk Carriers Bhd (Maybulk), Hartalega Holdings Bhd, PPB Group Bhd, CapitaLand M Trust (CLMT), Lagenda Properties Bhd, Dayang Enterprise Holdings Bhd, Bintai Kinden Corp Bhd, Protasco Bhd, Lion Industries Corp Bhd, Axis Real Estate Investment Trust (Axis REIT), Hextar Industries Bhd, TH Plantations Bhd and Ingenieur Gudang Bhd.
A group of shareholders of KNM Group Bhd, led by new substantial shareholder German billionaire Andreas Heeschen, has initiated a hostile takeover in the loss-making and cash-strapped engineering group. Heeschen, who emerged as the second largest shareholder of the Practice Note 17 (PN17) outfit with a 7.91% stake or 320 million shares last week, together with seven other shareholders have sought the removal of all nine directors in the company, to be replaced with their own nominees.
Malaysian Bulk Carriers Bhd (Maybulk) is to sell its Alam Kekal bulk carrier to Japan-based speciality financing services provider and equipment leasing group Tokyo Century Corp, for ¥4.43 billion (RM140.06 million). The price tag was derived based on the vessels' RM140.02 million market value as appraised by an independent valuer, as well as a RM112.22 million net book value as at end-December 2022. Maybulk expects a pro-forma net gain of RM23.6 million from the disposal.
Hartalega Holdings Bhd said global demand for rubber gloves may only recover in the second half of next year at the earliest, which is still bracing for industry-wide headwinds caused by an acute oversupply. Hartalega CEO Kuan Mun Leong said utilisation rate of its production lines is currently hovering between the 40% and 50% level, given market demand for gloves remains “depressed”. With margin compression due to low average selling prices and utilisation rate, the group, which suffered a net loss for three consecutive quarters, does not expect a turnaround in its financial year ending March 31, 2024.
PPB Group Bhd is cautious of potential renewal of geopolitical tension between Ukraine and Russia, along with unpredictable weather conditions that could choke grain and exert an impact on the performance of the group’s grains and agribusiness segment for the rest of the year. PBB’s managing director Lim Soon Huat emphasised that potential supply risks on the downside could increase cost pressures in procuring raw materials for the group.
CapitaLand M Trust (CLMT) will see the disposal of 3 Damansara Office Tower, which it acquired in 2015, to Lagenda Properties Bhd for RM52 million. The sale consideration is at a 4% premium to its valuation of RM50 million at end-July. Net proceeds of RM50.5 million from the sale will be used to repay borrowings, which will reduce CLMT’s gearing to 43.5%, from 44.1%. CapitaLand M REIT Management Sdn Bhd CEO Tan Choon Siang said this will help the entity in pursuing higher yielding opportunities in the new economy sectors.
Dayang Enterprise Holdings Bhd’s wholly-owned unit Dayang Enterprise Sdn Bhd has received a one-year and four-month extension to the company’s topside major maintenance services contract from Sarawak Shell Bhd and Sabah Shell Petroleum Co Ltd. The contract’s new extended period runs from Aug 20, 2023, until Dec 31, 2024. Dayang Enterprise did not place a value on the extension as it noted that it will be based on work orders issued by Sarawak Shell and Sabah Shell throughout the extended period.
Bintai Kinden Corp Bhd said its internal probe into the conduct of three unnamed board members has revealed, among others, that one of its former executive directors committed insider trading. It said the former executive director disposed of the shares preceding as well as on the date the company declared its PN17 status on March 29. While the former executive director is unnamed, a bourse filing dated April 24 stated that Bintai Kinden's former executive director Noor Azri Noor Azerai dumped his entire shareholding of 12.6 million shares or 1.34% stake in the company on March 28 and 29.
The High Court has ordered Protasco Bhd’s former director Datuk Tey Por Yee and his associate Datuk Ooi Kock Aun to pay the company RM84.64 million over breach of fiduciary and statutory duties related to a sale and purchase agreement signed in 2014. Protasco sued Tey and Ooi for US$27 million (RM88.41 million then) on Sept 22, 2014, for breach of fiduciary and statutory duties after the company failed to acquire a 63% stake in PT Anglo Slavic Indonesia for US$22 million.
Bursa Securities quizzed Lion Industries Corp Bhd on the group’s proposed RM92.03 million land disposal, including the reason for its estimated expenses for the disposal at RM22.23 million (24% of the proceeds), and how Lion Industries arrived at its disposal consideration of the two parcels of land, measuring 26.787 acres in Kawasan Perindustrian Olak Lempit, Banting. Lion replied that no independent adviser had been appointed, but noted that the RM92.03 consideration takes into consideration the holding cost for these two pieces of land. Meanwhile, it noted that the RM22.23 million expenses arising from the disposal comprise the estimated expenses consisting professional fees, fees payable in relation to the subdivision of the lands, real property gains tax and estimated advances charges.
Axis Real Estate Investment Trust (Axis REIT) is suing a former tenant at Axis Steel Centre @ SiLC in Nusajaya, Johor ― namely Yongnam Engineering Sdn Bhd ― to recover outstanding rental payments amounting to RM105.4 million. Its manager, Axis REIT Managers Bhd, is currently unable to estimate and assess the financial and operational impact of the lawsuit on the REIT as this depends on the outcome of the suit.
Hextar Industries Bhd is to acquire a 100% equity interest in office supplies firm Pacific Office (M) Sdn Bhd for RM16.5 million. According to Hextar Industries managing director Benny Ang, Pacific Office has a database of more than 3,500 active customers, making it rich in business information for the group to tap into and to leverage on to move further ahead in the market. The deal is expected to be completed in the fourth quarter of this year.
TH Plantations Bhd, the plantation arm of Lembaga Tabung Haji, has appointed Syed Hamadah Syed Othman as a non-independent and non-executive director of the company, effective Tuesday. Syed Hamadah, 52, who is the former CEO of Retirement Fund Inc (KWAP), was in May appointed as the new managing director and CEO of Lembaga Tabung Haji.
Ingenieur Gudang Bhd executive director and largest shareholder Chan Swee Ying has acquired a 5.1% stake ― comprising 73.43 million shares ― in the construction outfit, raising her shareholding in the company to 12.99%. She purchased the shares at 12 sen apiece or a total of RM8.81 million.