KUALA LUMPUR (Feb 6): Here is a brief recap of some corporate announcements that made the news on Tuesday: Eco World International Bhd, REDtone Digital Bhd, NPC Resources Bhd, British American Tobacco (Malaysia) Bhd, Hartalega Holdings Bhd, Cloudpoint Technology Bhd, Seal Incorporated Bhd, Sanichi Technology Bhd, Advancecon Holdings Bhd, Excel Force MSC Bhd, Reneuco Bhd, Bina Puri Holdings Bhd, and YTL Corp Bhd.
Eco World International Bhd plans to reduce its share capital by a further RM500 million to pay a targeted 21 sen per share in dividends or RM504 million in total payout over the next two years, after setting aside funds for working capital and funding requirements. The group intends to declare a first tranche of dividends amounting to at least RM144 million or six sen per share. The capital reduction is expected to be completed by the first half of 2024. The group did note that its dividend distribution target of RM504 million is solely the group’s internal target, and is neither a financial estimate, forecast nor projection, and it had not been reviewed by an external auditor. — Eco World International plans further RM500m capital repayment after RM1.5b last year
REDtone Digital Bhd has bagged a RM398.1 million MyGovUC 3.0 contract from the Malaysian Administrative Modernisation and Management Planning Unit (Mampu) to provide unified communications solutions. The contract covers the government’s unified communications including electronic mail system, calendar system, audio & video conferencing, chat spaces, directory management, as well as change management, including user training, software support, security operation centre, network operation centre and helpdesk covering information security management. — REDtone Digital bags RM398m contract from Mampu
Sabah-based NPC Resources Bhd has proposed to divest 7,505 acres (3,037 hectares) of oil palm land in the state, held through three subsidiaries, for RM165.11 million. The group plans to sell the land located in the Labuk-Sugut district to Tamaco Plantation Sdn Bhd, a private company based in Lahad Datu. NPC did not disclose how it is going to utilise the proceeds, the rationale behind the divestment, or the shareholders of Tamaco. — NPC Resources to sell 7,505 acres of oil palm land in Sabah for RM165 mil
British American Tobacco (Malaysia) Bhd’s (BAT Malaysia) net profit declined 23.27% to RM47.36 million in the fourth quarter ended Dec 31, 2023, from RM61.72 million a year ago, attributed to significant investments in launching vapour products, resulting in higher operating expenses. Quarterly revenue fell by 17.5% to RM635.86 million from RM770.66 million. The group declared a fourth interim dividend of 15 sen per share amounting to RM42.8 million, payable on March 5. — BAT Malaysia’s 4Q net profit down 23% to RM47.36 mil, announces 15 sen dividend
Glove maker Hartalega Holdings Bhd recorded a second straight quarterly profit of RM22.38 million in the third quarter ended Dec 31, 2023, versus a net loss of RM31.91 million a year before, as lower raw material prices and cost savings from its operational rationalisation exercise more than offset a 10% decline in revenue to RM415.64 million, from RM461.84 million a year before. The improved performance was also due to lower utilities expenses, better production efficiency arising from higher capacity utilisation, coupled with higher interest income and a reversal of certain provisions no longer required during the quarter. — Hartalega logs second consecutive quarterly profit in 3Q; Red Sea crisis hurts sales
Information technology solutions provider Cloudpoint Technology Bhd is acquiring a 75% equity interest each in Unique Central Sdn Bhd (UCSB) and Uniqcen Sales & Services Sdn Bhd (USSSB) for a total of RM26.78 million cash. UCSB is principally engaged in supplying, delivering and installation of data centres, data cabling, fibre optic works, as well as mechanical and electrical services, while USSSB is an electrical contractor. — Cloudpoint eyes becoming data centre solutions provider via stake buy in two data centre specialists
Seal Incorporated Bhd is diversifying into solar project engineering, procurement, construction and commissioning (EPCC) by subscribing for ordinary and preference shares of MSR Green Energy Sdn Bhd (MSRGE) in a RM15 million deal which could see it raising its stake in the solar EPCC outfit to 20%. The proposed subscription is a related party transaction, as MSRGE is 50.96%-owned by KVC Corp Sdn Bhd, which is in turn linked to Seal’s 29.22% shareholder Aaron Chen Khai Voon. The injection comes a little over six months after Chen, who has direct and indirect interest of 12.32% in Genetec Technology Bhd, emerged as a substantial shareholder in Seal back in July 2023. — Seal subscribes RM15m in shares, ICPS of solar EPCC outfit linked to shareholder Aaron Chen
After more than five years in talks, precision plastic mould maker Sanichi Technology Bhd has terminated its memorandum of understanding with Singapore-based FKS Holdings Pte Ltd to provide fresh produce such as seafood, wagyu beef, fruits and vegetables to international food and beverage industry players. It did not reveal the reason behind the termination. — Sanichi aborts plan with Singapore firm to provide fresh produce after five years in talks
Advancecon Holdings Bhd’s wholly owned subsidiary Advancecon Infra Sdn Bhd has bagged a RM27.3 million contract from Mujur Minat Sdn Bhd to carry out site clearing and earthworks construction (stage 1) for the Gamuda Gardens Park mixed development project in Rawang, Selangor. The contract shall commence from Feb 7, 2024 to Dec 16, 2024. — Advancecon bags RM27 mil earthworks contract for Rawang project
Financial services business solutions provider Excel Force MSC Bhd is buying the entire stake in Orca Capital Holdings Ltd, an investment holding company incorporated in the British Virgin Islands, from Honest Winner Ltd for RM18.15 million through the sale of shares and cash. Under the deal, 50.5 million new shares will be issued to Honest Winner at an indicative issue price of 33.5 sen per share, totalling RM16.92 million, while the balance of RM1.23 million is to be satisfied in cash. — Excel Force MSC to buy investment firm Orca Capital for RM18m
Bursa Malaysia has warned Reneuco Bhd that its shares will be suspended if it fails to submit its annual report for the financial year ended Sept 30, 2023, by Feb 8. It had already failed to submit the annual report by Jan 31, which was the last date of submission under the listing rules. Following that, the renewable energy specialist was given another five market days to submit the report or risk being suspended. Additionally, if Reneuco fails to issue the report within six months from Feb 8, de-listing procedures may be commenced against the group. — Reneuco shares to be suspended if it fails to submit annual report by Feb 8
Bina Puri Holdings Bhd was hit with a winding-up petition by an indirect subsidiary of YTL Corp Bhd, YTL Cement Marketing Sdn Bhd, for an alleged unsettled amount of RM1.74 million. YTL Cement Marketing claimed Bina Puri had failed to settle a demanded amount of RM1.74 million, including an interest rate of 1.5% per month, as at Nov 30, 2023. — Bina Puri hit with winding-up petition by YTL unit over alleged unsettled sum of RM1.7m