KUALA LUMPUR (Sept 7): Here is a brief recap of some corporate announcements that made the news on Thursday involving SkyWorld Development Bhd, Fiamma Holdings Bhd, Sapura Energy Bhd, MN Holdings Bhd, Destini Bhd, Jiankun International Bhd, Pestech International Bhd, Sarawak Cable Bhd, Fitters Diversified Bhd, Computer Forms (M) Bhd and Iqzan Holding Bhd.

SkyWorld Development (Vietnam) Company Ltd, a wholly-owned subsidiary of SkyWorld Development Bhd, is acquiring 1.3 acres of land in Ho Chi Minh City, Vietnam. The company said it acquired the land by way of purchasing a 100% stake or 1.7 million shares worth 100,000 dong (RM19.51) each in Thuan Thanh Trading Production and Real Estate Trading Joint Stock Company (the project company) for about 350 billion dong or RM67.9 million. Upon completion of the acquisition, SkyWorld Vietnam will have the lawful land use rights over the properties, including the adjoining parcels of land, through the ownership of the project company. It also noted that project is estimated to have a gross development value of RM310.4 million.

Household goods trading outfit Fiamma Holdings Bhd said it has paid RM109.65 million for an alienation land approval to develop a 1.88-acre land along Jalan Yap Kwan Seng in Kuala Lumpur. The approval was granted by the Federal Territories director of Lands and Mines Office. The leasehold land, which is located near to Fiamma’s existing 1.4-acre piece of land along the same road, will be used for mixed development split between residential (20%) and commercial (80%). It said that the payment is funded by a combination of internally-generated funds and external borrowings.

Cash-strapped Sapura Energy Bhd has secured a six-month extension to its standstill period from its multi-currency financing financiers under the Corporate Debt Restructuring Committee (CDRC) regime, pushing the end-date to March 10, 2024. It said that the CDRC’s decision to extend the standstill period past the coming Sept 9 expiry date was in consideration of the current progress of the group’s proposed restructuring schemes. The former Sept 9 standstill period end-date was a result of an extension it was granted by the CDRC back in February this year. The Practice Note 17 (PN17) outfit said the nine-month extension of the restraining orders it received from the court against its creditors back in June was also a factor in the CDRC’s decision. The restraining orders also end on March 10 next year.

Underground utilities and substation engineering specialist MN Holdings Bhd has secured a RM23.8 million substation engineering contract from Tenaga Nasional Bhd (TNB). MN Holdings said the utility giant awarded the contract to its wholly-owned unit MN Power Transmission Sdn Bhd (MNPTSB) to establish a new 132 kilovolt (kV) main intake substation (PMU) Bekok Switching Station (Air Insulated Switchgear) in Johor. “Under the substation engineering contract, MN Power will supply, erect, test and commission the 132 kV PMU Bekok Switching Station, including remote end substation works, complete with relevant primary, secondary and all associated civil works,” it said. The contract is expected to be completed in 540 days from the commencement date of Sept 4, 2023.

Destini Bhd has secured a two-year contract worth RM19.04 million for the procurement and supply of FZ Rocket Motor to the Royal Malaysian Air Force. The engineering solutions provider said the contract was granted by the Ministry of Defence (Mindef) to Destini’s wholly-owned unit Destini Prima Sdn Bhd for a period of two years until Sept 5, 2025. The company said that the contract is expected to contribute positively to the earnings and net assets of Destini for the financial year ending Dec 31, 2023 and the financial periods in the duration of the contract.

Jiankun International Bhd announced that it will not place out some 70 million shares for RM14 million to Eclipse International Sdn Bhd as the investor failed to transfer the subscription amount within the private placement timeframe. The property developer and construction company said that Eclipse had breached the subscription agreement as the latter did not remit the subscription price within five market days from the date the subscription agreement became unconditional (Aug 28). “In view thereof and in accordance with Clause 5.2.2 of the subscription agreement, the company shall not allot and issue the placement shares to Eclipse and as such, the private placement has lapsed and cannot be implemented,” it said. On April 17, Jiankun proposed to place out 70 million shares at the issue price of 20 sen per share for a total of RM14 million to Eclipse, to partially utilise to acquire a parcel of leasehold land in Klebang, Melaka for RM26 million.

Pestech International Bhd said the High Court has dismissed its unit’s Erinford injunction application filed against Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd (SPYTL) in another setback in its legal tussle with the main contractor of the Gemas-Johor Bahru electrified double-track rail project. The High Court had dismissed the injunction application filed by Pestech Sdn Bhd (PSB) on Sept 6. The Erinford injunction sought to preserve the status quo pending the conclusion of an appeal which PSB lodged on July 26. SPYTL, part of YTL Corp Bhd, had in June terminated PSB’s RM399 million sub-contract for the double-track project, particularly for the turnkey EPCC relating to the electrification system. PSB said it is appealing against High Court’s decision to dismiss its application for interim injunctions against SPYTL.

Sarawak Cable Bhd is seeking another extension of time to hold a court-convened creditors' meeting to facilitate a scheme of arrangement and compromise with the creditors. This marks the fifth time the PN17 company has applied for a time extension from the High Court. The initial deadline was Sept 29, 2022 and the latest deadline granted by the court is Sept 9 this year. The power cable and wire producer said the creditors' meeting has now been scheduled for Sept 26, but since this date falls after the latest deadline of Sept 9, the company is seeking another extension until Sept 26. In September last year, Sarawak Cable and six of its subsidiaries applied to the High Court for leave to convene a meeting with their creditors and for a restraining order to restrain legal suits, winding up petitions and enforcement proceedings against the group and subsidiaries.

Fitters Diversified Bhd’s acquisition of shares and warrants in Computer Forms (M) Bhd is not reasonable and detrimental to non-interested shareholders, according to independent advisor Wyncorp Advisory Sdn Bhd. In a circular issued by Fitters to shareholders, Wyncorp Advisory said the related-party acquisition in March is premature, not substantiated by prevailing fundamentals and involves a high degree of investment risks. Wyncorp Advisory’s view is premised on Computer Forms being in a loss-making position and its net asset per share being significantly lower than the prevailing market share price, as well as its share price being relatively volatile and recording a rapid increase despite the company’s financial performance not turning around yet. Fitters had acquired 4.54% or 12.14 million shares in Computer Forms between March 7 and 8 for RM26.44 million, together with 4.78% or 6.18 million warrants for RM8.33 million. The transactions had been deemed related-party by Bursa Securities as Fitters executive director Hoo Swee Guan is also an executive director of Computer Forms, while independent non-executive directors Wong Kok Seong and Kho See Yiing also sit on the board of Computer Forms as a senior independent non-executive director and independent non-executive director respectively.

Trading in Iqzan Holding Bhd shares are to be suspended on Sept 15 prior to being delisted on Sept 19, unless the Kedah-based wooden crate and pallet manufacturer submits an appeal within a week’s time. This came after Bursa Securities rejected the PN17 company’s application for a further extension of time to submit its regularisation plan. The bourse regulator noted that if Iqzan submits an appeal by Sept 14, the delisting will be deferred pending a decision on the appeal.