KUALA LUMPUR (Nov 7): Here is a brief recap of some business news and corporate announcements that made the headlines on Thursday:
Ekovest Bhd’s (KL:EKOVEST) largest shareholder Tan Sri Lim Kang Hoo is exploring selling his toll-road business Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi) for up to RM5 billion, Bloomberg reported citing people with knowledge of the matter. Ekovest owns 60% of Kesturi, while the remaining balance is held by the Employees Provident Fund (EPF). The report said Lim is working with a financial adviser on the potential divestment of a majority holding closely held in Kesturi. Deliberations are ongoing and Ekovest could still keep the assets, the source said. — Ekovest’s Lim weighing sale of toll-road assets for RM5b — Bloomberg
Eco World Development Group Bhd (KL:ECOWLD), via its 81%-owned subsidiary Mutiara Balau Sdn Bhd, is buying 10 parcels of land measuring 847.25 acres in Semenyih, Selangor for RM742.41 million, cash. It plans to use the plots for a new mixed development called Eco Forest 2, which is expected to have an estimated gross development value of RM4.6 billion. Mutiara Balau on Wednesday inked two conditional sale and purchase agreements to buy the land from Boustead Properties Bhd’s sister companies, Boustead Plantations Bhd and Boustead Palau Sdn Bhd. The transaction follows Mutiara Balau's participation in a request for proposal process initiated by Boustead Properties Bhd for development of the plots, which are located next to EcoWorld's Eco Forest township. Boustead Properties is also the shareholder of the remaining 19% in Mutiara Balau. — EcoWorld to fork out RM742m cash to buy 10 plots of Semenyih land from Boustead Group for new RM4.6b mixed project
Mah Sing Group Bhd (KL:MAHSING) has acquired a 5.24-acre freehold parcel in Old Klang Road for approximately RM113 million from Team Keris Bhd to develop a new transit-oriented development (TOD) named M Aurora. The sale and purchase agreement was inked on Thursday, and the project is expected to be open for registration in the first quarter of 2025. M Aurora will have an estimated gross development value of RM660 million, it said in a statement. — Mah Sing acquires 5.24-acre Old Klang Road land for transit-oriented M Aurora
Pentamaster Corp Bhd (KL:PENTA) said its net profit fall 49.9% to RM11.77 million for the third quarter ended Sept 30, 2024 (3QFY2024), from RM23.49 million a year ago, dragged down by lower automated test equipment (ATE) sales performance and foreign exchange losses. The quarterly net profit is the lowest since 1QFY2018 when it posted a net profit of RM7.32 million. Revenue for the quarter dropped 17% year-on-year to RM150.18 million from RM180.74 million, as the ATE division’s sales fell nearly 46% to RM53.42 million. No dividend was declared for the quarter. — Pentamaster’s 3Q profit halves on lower auto-related sales, forex losses
Sentral REIT (KL:SENTRAL), which mainly manages office towers, said its net property income rose 25% in the third quarter ended Sept 30, 2024 from a year earlier, boosted by revenue from a newly acquired property. Net property income was RM37.6 million, helping to lift net distributable income to RM20.5 million, the real estate investment trust said in an exchange filing. The trust did not declare income distribution for the quarter. — Sentral REIT's 3Q net property income rises 25% as Menara CelcomDigi boosts revenue
KKB Engineering Bhd has secured contracts worth a combined RM93 million from several companies with key projects in the industrial and infrastructure sectors. KKB said the latest contracts include a three-year price agreement from Petroleum Sarawak Bhd (Petros), a sub-contract from Bina Puri Builder Sdn Bhd — a wholly owned unit of Bina Puri Holdings Bhd (KL:BPURI), and a purchase order from Greenchain Capital Sdn Bhd. — KKB Engineering bags jobs totalling RM93m from Petros, other firms
Software company Microlink Solutions Bhd (KL:MICROLN) has secured a RM83.51 million contract from the Ministry of Home Affairs (KDN) to develop and supply an advanced passenger screening system for the Immigration Department. The Main Market-listed company, whose share price has fallen 84% year-to-date, said the two-year contract was awarded to its wholly owned unit Microlink Systems Sdn Bhd (MSSB). “The project is subject to a formal agreement to be entered into between KDN and MSSB,” it said. — Microlink bags RM84 mil contract to develop screening system for Immigration Department
FGV Holdings Bhd (KL:FGV) said its indirect subsidiary FGV Bulkers Sdn Bhd is being sued for allegedly breaching an agreement for the supply of palm kernel shells. The plantation giant said that the lawsuit was filed by South Asian International Distribution Sdn Bhd, seeking damages totalling RM90.84 million for losses incurred due to the alleged breach. “The company does not expect that there will be any material operational and financial impact to FGV Bulkers and FGV from the suit for the financial year ending Dec 31, 2024,” FGV said. — FGV’s unit sued over alleged breach of supply agreement
Southern Steel Bhd (KL:SSTEEL) has settled its legal dispute over the construction of a hot-rolled coils plant with Italian plant builder Danieli & C Officine Meccaniche SpA, which started in August 2016. The parties have inked a settlement agreement on Wednesday, it said, under which Danieli agreed to pay Southern Steel’s wholly owned Southern HRC Sdn Bhd (SHRC) €42.48 million (RM187.08 million), which comprises €35.48 million for the plant and €7 million for related spare parts and equipment. In return, SHRC will transfer ownership of the plant to Danieli. — Southern Steel reaches RM187m settlement with Italian plant builder