KUALA LUMPUR (Dec 17): Here is a brief recap of some business news and corporate announcements that made the headlines on Tuesday:
Target 1 Sdn Bhd has accused South Malaysia Industries Bhd (KL:SMI) of not cooperating in facilitating the extraordinary general meeting (EGM) scheduled for Jan 9, 2025 and the mandatory takeover offer for SMI. Target 1 requested SMI’s record of depositors to dispatch the EGM notice but has not received the information. Despite this, Target 1 remains committed to ensuring the EGM proceeds and will take necessary legal actions to move forward. — South Malaysia Industries uncooperative in facilitating EGM, alleges acquirer Target 1
Scientex Packaging (Ayer Keroh) Bhd (KL:SCIPACK) reported a 62.4% decline in net profit for 1QFY2025, falling to RM2.9 million from RM7.7 million in the previous year, primarily due to foreign exchange losses. Revenue rose 3.6% to RM179.3 million, driven by higher export sales, which contributed 48.4% of total revenue. However, operating profit dropped 51.1% to RM5.7 million due to higher input costs and an unfavourable sales mix. The company experienced a RM3.9 million foreign exchange loss, compared to a gain of RM687,000 last year, leading to a decline in operating margin from 6.7% to 3.2%. — Scientex Packaging’s 1Q profit down 62% as forex loss offsets higher exports
Cash-strapped KNM Group Bhd's (KL:KNM) German subsidiaries in the Borsig Group have secured a €60 million (RM280.4 million) credit facility from Landesbank Baden-Württemberg and other lenders, ensuring continued operations. The facility replaces a previous agreement with IKB Deutsche Industriebank AG that expired on Monday. It has a three-year tenure with two optional one-year extensions and an option to increase the amount by €40 million. — KNM's Borsig group secures €60m multi-currency facility to continue operations
Jewellery retailer Poh Kong Holdings Bhd's (KL:POHKONG) 1QFY2025 net profit increased by 12.3% to RM21.34 million from RM19 million a year earlier, driven by higher gold prices. This is despite a 7.5% year-on-year drop in revenue to RM329.28 million from RM355.98 million due to lower demand for gold jewellery and investment products. No dividends were declared for the quarter. — Poh Kong's 1Q net profit up 12% on uptrend in gold prices
Kumpulan Perangsang Selangor Bhd (KL:KPS) has appealed a RM7.9 million capital gains tax (CGT) assessment and penalty issued by the Inland Revenue Board to its subsidiary Bold Approach Sdn Bhd. The tax, based on proceeds from the divestment of Kaiserkorp Corp Sdn Bhd, includes RM5.44 million in CGT and a RM2.45 million penalty for non-filing. The amount must be settled by Dec 28. — Kumpulan Perangsang Selangor appealing against RM7.9 mil claims by IRB
The High Court has ruled in favour of Ahmad Zaki Resources Bhd's (KL:AZRB) 51%-owned unit, Betanaz Properties Sdn Bhd, in a tenancy dispute with Aeon Co (M) Bhd. Aeon was found to have "wrongfully terminated" the agreement and was ordered to pay RM18.7 million in damages, with a 5% annual interest from March 2021, as well as RM200,000 in costs within 45 days. Aeon's counterclaims were also dismissed and it was ordered to pay RM100,000 in costs to AZRB. Additionally, a separate bank guarantee suit filed by Aeon was dismissed, with damages assessment pending. — Court rules in favour of Ahmad Zaki’s unit in tenancy dispute with Aeon Co
Loss-making PUC Bhd (KL:PUC) is acquiring Alevate Solutions Sdn Bhd (ASSB) for RM100 million, funded entirely by issuing 800 million new shares at 12.5 sen each, a 212.5% premium to its recent closing price of 4 sen. This deal replaces an earlier RM200 million agreement to buy both ASSB and Alevate Capital Sdn Bhd, which was scrapped over pricing disagreements. After the acquisition, ASSB's sole shareholder, Tham Lih Chung, will hold a 22% stake in PUC’s enlarged share capital. — PUC drops money lender acquisition, proceeds with digital marketing firm buy for RM100m in all-share deal
TXCD Bhd (KL:TXCD), formerly known as Ageson Bhd — and before that Prinsiptek Corp Bhd — said its largest shareholder, Datuk Seri Liew Kok Leong, has sold his entire 15.56% stake, totalling 48.5 million shares, to Chew Swe Siew on Dec 13. The shares, held directly and through Ukay One Sdn Bhd, were valued at approximately RM4.36 million based on the company’s nine-sen closing price. With Liew's exit, Chew becomes TXCD's sole substantial shareholder. — TXCD's largest shareholder Liew Kok Leong exits after selling 15.56% stake to Chew Swe Siew
ACE market-listed VSolar Group Bhd (KL:VSOLAR) plans a share capital reduction of up to RM100 million to offset its accumulated losses of RM95.38 million as of Sept 30, 2024. Following the reduction, the company will retain net earnings of RM4.44 million. Its issued share capital currently stands at RM192.39 million, comprising 497.25 million shares and 168.05 million outstanding warrants. — VSolar proposes share capital reduction to wipe out losses
Infrastructure utilities engineering services provider Jati Tinggi Group Bhd (KL:JTGROUP) will supply and install photovoltaic solar panel systems at 135 Public Bank branches for RM14.88 million. The project, covered under an MOU between Jati Tinggi Holding Sdn Bhd and Public Bank, involves 333 properties and is expected to be completed within three years. — Jati Tinggi to install solar panels at Public Bank's branches
PT Resources Holdings Bhd's (KL:PTRB) net profit for 2QFY2025 dropped significantly to RM1.68 million, down from RM18.7 million in the same quarter last year. The decline was due to lower local sales and a 50.9% increase in administrative expenses, which rose to RM12.2 million. The company also experienced an unrealised foreign exchange loss of RM1.9 million, compared to a gain of RM4.2 million previously. Quarterly revenue dropped 18% to RM91.6 million, mainly due to a change in product mix leading to the sale of lower-margin products. — PT Resources 2Q records lowest quarterly top and bottom line
Sapura Energy Bhd (KL:SAPNRG) has received its fourth deadline extension from Bursa Securities to submit its regularisation plan to exit its PN17 status. The new deadline is May 31, 2025. The company entered PN17 status on May 31, 2022, and had an initial deadline of May 31, 2023, for the plan. Outgoing CEO Datuk Anuar Taib previously stated that the company aims to exit PN17 by 2026. — Sapura Energy gets fourth deadline extension to submit regularisation plan to May 2025