KUALA LUMPUR (March 25): Here is a brief recap of some business news and corporate announcements that made the headlines on Tuesday:

Velesto Energy Bhd (KL:VELESTO) has announced a RM1.2 billion share capital reduction aimed at enhancing its capital structure and preparing for potential future distributions to shareholders. This marks the oil and gas drilling rig operator's second such exercise in five years, after a RM2.21 billion capital reduction in February 2020. After the proposed capital reduction exercise, Velesto’s retained earnings are expected to be RM1.06 billion and RM1.33 billion at the group and company levels, respectively. — Velesto Energy proposes RM1.2b capital reduction

Astro Malaysia Holdings Bhd (KL:ASTRO) closed its financial year ended Jan 31, 2025 (FY2025) with a threefold increase in net profit despite a drop in the last quarter. The pay-TV entertainment group reported a full-year net profit of RM129.15 million, up from RM36.88 million in FY2024, helped by lower finance costs and reduced amortisation of intangible assets. Net profit for the three months ended Jan 31, 2025 (4QFY2025) was RM10.49 million, against RM44.38 million a year earlier. The company did not declare any dividend. — Astro closes FY2025 with higher full-year net profit despite 4Q drop

Construction company Binastra Corp Bhd (KL:BNASTRA) reported a 63.2% year-on-year jump in its fourth quarter net profit, as revenue surged 73.9% on higher construction activities and the commencement of 12 new projects during the financial year. The group also declared its first dividend in seven years. The group made a net profit of RM25.1 million for its fourth quarter ended Jan 31, 2025 (4QFY2025), up from RM15.38 million in 4QFY2024, as revenue, which was contributed almost entirely by its construction business under Binastra Builders Sdn Bhd, jumped to RM270.2 million from RM155.37 million. It announced a three sen interim dividend per share to be paid on April 25, 2025. — Binastra anticipates further growth after 63% profit surge in 4Q, declares first dividend in seven years

MCE Holdings Bhd's (KL:MCEHLDG) second quarter net profit more than doubled year-on-year to reach a record high, despite lower revenue, thanks to a gain from asset disposal and interest income. The automotive electronic and mechatronic parts manufacturer said its net profit for the second quarter ended Jan 31, 2025 (2QFY2025) jumped to RM9.57 million from RM4.52 million in 2QFY2024, as it recorded a RM7.52 million gain on the disposal of assets held for sale. Revenue was down 14.38% to RM34.29 million, compared with RM40.05 million previously — primarily due to lower customer demand and fewer working days due to the festive holidays. It also declared a first interim dividend of six sen per share, payable on May 15. — MCE Holdings posts record quarterly profit in 2Q on disposal gain

Axiata Group Bhd (KL:AXIATA) said shareholders of PT XL Axiata Tbk (XL Axiata), PT Smartfren Telecom Tbk and PT Smart Telcom (SmartTel) have approved the proposed merger to establish Indonesia’s third-largest telecommunications company by subscriber base. Shareholders of the three Indonesian telcos approved the proposal at their respective extraordinary general meetings (EGMs) held on Tuesday. This comes a day after Axiata shareholders gave their nod to the merger plan at the group's EGM. Under the proposal, Smartfren and its subsidiary SmartTel will be transferred to XL Axiata. —  Indonesian shareholders approve XL Axiata-Smartfren merger to establish country’s third-largest telco

Cape EMS Bhd (KL:CEB) has partnered with Taiwan’s Aerospace Industrial Development Corporation (AIDC) to enter the aerospace parts manufacturing industry and expand its renewable energy business. AIDC, also known as Hanxiang Aerospace Corp, and Cape EMS have also agreed to work on renewable energy projects, particularly next-generation microgrid solutions, or "power islands", which are self-sustaining energy systems to provide clean electricity to remote communities in Southeast Asia and rural Australia. — Cape EMS teams up with Taiwanese aerospace firm to enter into aerospace parts, expand renewable energy

Property developer Malton Bhd (KL:MALTON) has entered into a memorandum of understanding (MOU) with Shenzhen Apexls Optoelectronic Co Ltd, a China-based manufacturer of LED displays, to incorporate advanced LED technology into its Malaysian property developments. The collaboration aims to evaluate the potential demand for advanced LED display technologies in Malaysia, focusing on the feasibility and market research necessary to incorporate interactive LED displays, dynamic digital billboards and immersive LED experiences into Malton's upcoming projects. — Malton inks MOU with Shenzhen Apexls to incorporate advanced LED tech into Malaysia property projects

Press Metal Aluminium Holdings Bhd’s (KL:PMETAL) 21.75%-owned Hong Kong unit, Nanshan Aluminium International Holdings Ltd (NAIHL), had a soft debut on the Hong Kong Stock Exchange (HKEX) on Tuesday, registering a 5.08% drop in share price. The company, bearing the stock code “2610”, was listed on the Main Board of HKEX with an initial public offering (IPO) price of HK$26.60 (RM15.18), projected to generate net proceeds of HK$2.22 billion. The proceeds will be primarily used for building and expanding the second one-million-tonne alumina production facilities in Bintan, Indonesia. — Press Metal’s HK unit debuts on Main Board of Hong Kong Stock Exchange

AirAsia Aviation Group Ltd, the aviation business of Capital A Bhd (KL:CAPITALA), is in the final stages of securing up to RM1 billion in debt financing from an undisclosed domestic bank, to be used to refinance its US dollar-denominated debt and for other corporate purposes. Its deputy group CEO Farouk Kamal said the financing deal, expected to be in ringgit, is aimed at paring down the low-cost carrier's "expensive" US dollar borrowings that were undertaken during the Covid-19 pandemic. However, he did not disclose the currency composition of the company's debt. "As we (Capital A) exit the Practice Note 17 (PN17) status, the appetite from domestic bank lending will be there," Farouk told a press conference. — Capital A's AirAsia Aviation Group in final talks for RM1b funding to refinance US dollar loans, says deputy CEO

Oil and services firm KNM Group Bhd (KL:KNM) said its indirect wholly-owned subsidiary is being sued by MBSB Bank Bhd for allegedly defaulting on a RM116.13 million Islamic financing facility. Perwira Awan Sdn Bhd, a subsidiary of KNM Process Systems Sdn Bhd, has been served with the originating summons, where MBSB Bank is seeking a court order to auction off its land in Kuantan, Pahang. KNM said it is seeking legal advice on the matter and will decide on the next course of action. — MBSB Bank demands to auction KNM’s land in Kuantan over RM116m debt

Three Bursa Malaysia-listed companies that are linked to businessman Datuk Keh Chuan Seng have assured investors that his resignation will not impact their business operations or strategic plans, despite recent heavy selling pressure on their shares. In a joint statement, contract manufacturer Ge-Shen Corp Bhd (KL:GESHEN), waste management company Tex Cycle Technology (M) Bhd (KL:TEXCYCL), and secondary stainless steel long products maker K Seng Seng Corp Bhd (KL:KSSC) stressed that Keh’s departure would not disrupt their ongoing or future business activities. “Keh’s resignation is due to personal circumstances as per Bursa announcement and as such, we are not in the position to provide further comment on his departure,” the three companies said in the statement, adding that they remain committed to delivering results in the best interest of all stakeholders. — Three Keh Chuan Seng-linked firms assure business stability amid selling pressure