KUALA LUMPUR (March 3): Here is a brief recap of some business news and corporate announcements that made the headlines on Monday:

UEM Edgenta Bhd (KL:EDGENTA) has secured a RM40.43 million recurrent, related-party contract to provide traffic management plan and control services for two sections of the Kuala Lumpur-Karak Highway. The contract, awarded by AFA Construction and Engineering Sdn Bhd (AFACE) to UEM Edgenta’s wholly-owned Edgenta Propel Bhd (EPB), is considered a related-party transaction because UEM Edgenta's independent, non-executive chairman Tan Sri Dr Azmil Khalili Khalid is the sole owner and director of AFACE’s parent company, AFA Infrastructure and Development Sdn Bhd. Azmil is also the sole shareholder of AFA Prime Bhd (formerly Anih Bhd), the concessionaire of the Kuala Lumpur-Karak Highway. — UEM Edgenta secures RM40.4m traffic management contract from chairman-linked company

Exsim Hospitality Bhd (KL:EXSIMHB) has secured five contracts worth a combined RM127.92 million for design, renovation and fit-out works across multiple property developments. The group said all five contracts are deemed recurrent related-party transactions, as Exsim Hospitality’s major shareholders — Lim Aik Hoe, Lim Aik Kiat and Lim Aik Fu — who collectively hold a 70.5% indirect interest in the company, also control substantial stakes in the awarding entities through Exsim Development Sdn Bhd. The largest contract, valued at RM100 million, was awarded by Uni Land Sdn Bhd for works on a 456-room hotel at Empire City (Building No F). The project, set to commence on March 3, is expected to be completed within 16 months, with a defect liability period of 12 months. — Exsim Hospitality bags five related-party contracts across multiple property projects

Eden Inc Bhd (KL:EDEN) announced on Monday that its Libaran power plant in Sandakan will continue supplying power to Sabah’s east coast for another two years with a 50% increase in capacity. Stratavest Sdn Bhd, which runs the plant, has signed a power purchase agreement (PPA) with Sabah Electricity Sdn Bhd for the extension that comes with 15 megawatts (MW) more capacity, bringing capacity up to 45MW. The new PPA will remain in effect until Feb 27, 2027. No contract value was disclosed. — Eden’s power plant to supply Sabah’s east coast for two more years with 50% more capacity

Offshore crane services provider Handal Energy Bhd (KL:HANDAL) has proposed to venture into the healthcare services through the subleasing of two hospitals in Selangor. The company has signed a memorandum of agreement (MOA) with Hartanah Azzahrah Sdn Bhd (HASB), which requires Handal to source a buyer for Hospital Islam Az-Zahrah Bangi and Hospital Az-Zahrah Bandar Tun Hussein Onn, for a total indicative consideration of not less than RM69 million. Upon successful acquisition, the buyer will lease the properties to Handal, which will then sublease them to Medi-Circle Sdn Bhd and Pusat Rawatan Islam Az-Zahrah Sdn Bhd to continue operating them as private healthcare facilities. The sublease period will span 30 years, with an annual rental rate fixed at 8% of the acquisition price. — Handal Energy diversifies into healthcare to secure recurring income

Construction outfit Nestcon Bhd (KL:NESTCON) has proposed to diversify into property development through a joint venture (JV) serviced apartment project in Petaling Jaya Selatan, Selangor, to expand its revenue streams. Nestcon said its subsidiary Nestcon PJS Sdn Bhd entered in a joint development agreement with Kumpulan Wilayah Sejati Sdn Bhd (KWSSB) for the mixed-use development project — including commercial lots and approximately 480 serviced apartments units — with an estimated gross development value (GDV) of RM211.7 million and gross development cost of RM174.3 million. Under the agreement, KWSSB will provide the land and receive RM10 million as an entitlement, while Nestcon PJS will oversee sales, marketing, design, construction and financing. — Nestcon to diversify into property development as it jointly undertakes apartment job in PJ

Property developer Asian Pac Holdings Bhd’s (KL:ASIAPAC) wholly-owned subsidiary Primadana Utama Sdn Bhd is buying the Jaya Shopping Centre in Petaling Jaya, Selangor, for RM100 million, cash. The seven-storey shopping mall covers an approximate area of 92,712 sq ft, including a lower ground floor and four levels of basement car park with 786 car park bays. It has an occupancy rate of 78%. Following the acquisition, the group’s retail net lettable areas will increase to 996,207 sq ft from 728,094 sq ft. Currently it owns the Imago Mall in Kota Kinabalu, Sabah. — Asian Pac to buy Jaya Shopping Centre in Petaling Jaya for RM100m

Barakah Offshore Petroleum Bhd (KL:BARAKAH) is seeking a new buyer for its Kota Laksamana 101 (KL101) barge as it has cancelled its plan to sell the vessel to PT Wintermar Rajawali Asia after the preliminary agreement they inked for the deal lapsed on February 28. Barakah, which is under Practice Note 17 (PN17), said it has sent a notice of cancellation and termination to PT Wintermar Rajawali on Monday. Barakah said it is already in active talks with several other potential buyers to finalise the disposal of the KL101 barge, while simultaneously negotiating revised payment terms with the Export-Import Bank of Malaysia Bhd (Exim Bank) for its outstanding debt. Barakah had intended for the disposal of the barge to partially repay the US$11.06 million (about RM49.4 million) it owed Exim Bank. — Barakah back on the hunt for barge buyer as deal with PT Wintermar Rajawali falls through

Sime Darby Property Bhd (KL:SIMEPROP) will look to take on more data centre projects as a means of growing its recurring income, said group managing director and chief executive officer Datuk Seri Azmir Merican. “We are active in this market. If the economics are right and it makes financial sense, we are open to looking at more projects as we aim to build a solid recurring income base,” Azmir said.  He added that the group’s two existing data centre projects will contribute to earnings over the next 20 years without providing specific financial guidance. — Sime Darby Property eyes more data centres to boost recurring income, says CEO

Pantech Global Bhd (KL:PGLOBAL) said on Monday its US clients continued to place orders from the newly listed steel pipe manufacturer despite new import tariffs. The company has been in constant contact with its customers in the US, “and none of them have shown any sign of concern”, said managing director Adrian Tan. The US is the single largest market for Pantech Global, contributing 47% to revenue for the year ended Feb 29, 2024. Demand is still resilient, and “we have built our reputation as an exporter, so people know who we are”, Tan added. — Pantech Global says US business unaffected by tariffs for now, demand still resilient

Digital media and advertising group Catcha Digital Bhd (KL:CATCHA) plans to continue to expand via mergers and acquisitions (M&As), and may spend more than the RM80 million it set aside in September last year for this purpose. Catcha Digital, which just announced over two months ago that it was buying controlling stakes in three companies, said its acquisitions typically fall into two categories: platform acquisitions and add-on acquisitions. "Platform acquisitions involve acquiring businesses with sufficient scale or those that will achieve scale through a focused buy-and-build strategy, while add-on acquisitions are made to grow and scale existing platform acquisitions," chief executive officer Eric Tan Leong Yit said. — Catcha Digital to continue M&A spree, expansion may exceed RM80 mil target