KUALA LUMPUR (March 21): Here is a brief recap of some business news and corporate announcements that made the headlines on Friday:

Alliance Bank Malaysia Bhd (KL:ABMB) is planning to raise up to RM600 million through a rights issue exercise, primarily to fund its general banking, financing and investing activities. The lender said the entitlement basis and issue price of the new ordinary shares will be determined and announced at a later date. Under the exercise, shareholders will have the option to either fully or partially subscribe to their entitlements or renounce them. The bank’s major shareholder Vertical Theme Sdn Bhd (VTSB) has provided an irrevocable undertaking to subscribe in full for its entitlement under the exercise. VTSB holds a 29.06% stake in Alliance Bank. — Alliance Bank to raise up to RM600 mil via renounceable rights issue

Crest Builder Holdings Bhd (KL:CRESBLD) has proposed a private placement of up to 30% of its share base to raise RM24.3 million to pay for borrowings and purchase building materials. Of the proceeds, RM19.44 million has been earmarked for partial repayment of a revolving credit facility, followed by RM3.93 million to purchase building materials for the construction of the Kiaramas and Desa ParkCity projects. At the end of December 2024, Crest Builder’s total borrowings amounted to RM573.29 million against cash balances of RM80.98 million. — Crest Builder plans private placement to raise RM24.3m for debt repayment, working capital 

Capital A Bhd (KL:CAPITALA) said the High Court has confirmed its issued share capital reduction and repayment, paving the way for the low-cost airline’s proposed distribution. “The confirmation from the High Court provides us with the clarity we need to move ahead with the proposed distribution and other key initiatives,” Capital A chief executive officer Tan Sri Tony Fernandes said. “We are fully committed to ensuring a seamless transition for all stakeholders as we continue to reshape Capital A into a leaner, more focused travel and digital business,” he added. Capital A said the exact amount of share capital reduction required for the proposed distribution will be determined based on its sister company AirAsia X Bhd’s (KL:AAX) share price at the time of application to the court. — Capital A to proceed with distribution plans after court confirms share capital reduction

Nestlé (Malaysia) Bhd (KL:NESTLE) on Friday broke ground for a RM250 million integrated logistics hub in Port Klang. The facility is designed to function as a regional hub, facilitating product exports to over 60 countries and sourcing imported raw materials, Nestlé Malaysia said. The hub is expected to be fully operational by the first quarter of 2026 and create over 200 new jobs, it said. “This milestone project is part of Nestlé’s broader strategy to enhance supply chain efficiency and sustainability while supporting the local economy through job creation and infrastructure development,” the company noted. — Nestlé Malaysia breaks ground for RM250m regional logistics hub in Port Klang

DRB-Hicom Bhd (KL:DRBHCOM) has been spared from a potential RM246.25 million tax bill after the Inland Revenue Board (IRB) ruled in favour of the automotive-to-banking conglomerate’s appeal, reversing its decision to classify the gain from the disposal of its long-held stake in Alam Flora Sdn Bhd as income. DRB-Hicom said its wholly-owned unit, Hicom Holdings Bhd (HHB), received a notification from the IRB confirming the full discharge of the RM246.25 million tax amount. This came after HHB appealed against the notice of additional assessment, received on Aug 30, 2024, with additional supporting documents. — DRB-Hicom spared RM246 mil tax bill after IRB rules in favour of appeal

VS Industry Bhd’s (KL:VS) net profit fell nearly 4% to RM15.38 million for its second quarter ended Jan 31, 2025 (2QFY2025) from RM16 million a year ago, mainly due to a sharp contraction in foreign exchange (forex) gains, which fell to RM915,000 from RM12.79 million a year earlier. Quarterly revenue increased by barely 2.8% to RM908.79 million, from RM884.06 million in 2QFY2024. The company said its earnings growth was primarily driven by the Malaysia segment, whose revenue grew by 23.8%. However, revenue from the Singapore and Indonesian operations declined by 52% and 7.5%, respectively.  — VS Industry net profit drops 4% in 2QFY2025 amid less favourable forex, declares 0.4 sen dividend

Genting Bhd (KL:GENTING) has agreed to pay a fine of US$10.5 million (RM46.41 million) to the Nevada Gaming Commission as part of a settlement for a complaint against its Las Vegas resort. The settlement agreement signed between Resorts World Las Vegas LLC (RWLV LLC) and the Nevada Gaming Control Board is subject to the acceptance of the Nevada Gaming Commission, at a hearing scheduled next week on March 27, 2025. Should the settlement agreement be accepted by the commission, reports out of the US put it as the second largest fine imposed in Nevada’s gaming history. — Genting agrees to RM46m fine as part of settlement for complaint against Las Vegas resort

Wastewater engineering and construction firm Salcon Bhd (KL:SALCON) said it is pushing to grow its existing healthcare and renewable energy (RE)  segments, and is proposing to include the two into its principal activities. The group, which is principally involved in water and wastewater engineering, also operates rubber glove manufacturing, healthcare, trading and services (transportation services, solar power services and technology services) and property development segments, among other non-core businesses. In the financial year ended Dec 31, 2023 (FY2024), the healthcare business contributed 1.83% of the group's RM298.73 million revenue, while the RE business' contribution came in at 0.73%. The core engineering and construction segment contributed 77.21% of its top line, followed by glove manufacturing with 16.04%. — Salcon to expand healthcare, renewable energy segments in diversification bid

Erdasan Group Bhd (KL:ERDASAN), formerly known as AT Systematization Bhd, is taking legal action against suspended executive director Mak Siew Wei, alleging fraud.  Erdasan is suing Mak for equitable fraud for diverting RM46.47 million of company funds to various third parties without any valid justification. The company is seeking a declaration that Mak is a constructive trustee holding the alleged amount, and that his assets and properties should be traced and used to settle his RM46.47 million debt to the company. Alternatively, the company is asking Mak to pay the sum of RM46.47 million as compensation. — Erdasan follows suspension of ED Mak Siew Wei with legal suit for alleged fraud      

CelcomDigi Bhd (KL:CDB) on Friday announced the appointment of Jon Omund Revhaug as its deputy chairman and non-independent non-executive director, with immediate effect. He replaces fellow Norwegian Haakon Bruaset Kjoel, who is leaving CelcomDigi's board following his resignation from Telenor Asia Pte Ltd and Group. Revhaug, 58, is a representative of Telenor Malaysia Investments Pte Ltd, a major shareholder of CelcomDigi. — Jon Omund Revhaug appointed deputy chairman of CelcomDigi