KUALA LUMPUR (Oct 9): Here is a brief recap of some business news and corporate annoucements that made the headlines on Thursday:
SD Guthrie Bhd (KL:SDG) has resolved its five-year legal dispute with the Penang Development Corporation (PDC) involving the compulsory acquisition of the group's lands in Byram Estate, Seberang Perai Selatan, following a settlement between the entities. The group has secured an additional RM68.01 million in compensation for the 18 parcels of land totalling about 380 acres that PDC acquired from it in 2020, raising the total payout to RM241 million. The agreement also unfreezes RM37.52 million in compensation that was previously held by the land administrator. — SD Guthrie obtains additional RM68.01m in land acquisition settlement with PDC
Dagang NeXchange Bhd (KL:DNEX) has reached a global settlement with its Chinese partner Tethystronics Technologies Co Ltd (TTCL) over disputes involving semiconductor foundry SilTerra Malaysia Sdn Bhd, paving the way for a RM100 million investment in DNeX’s semiconductor holding company. Under the settlement, TTCL’s wholly owned unit Mimastronics Technologies Co Ltd (Mimas) will subscribe for 5,000 redeemable convertible preference shares (RCPS) in DNeX Semiconductor Sdn Bhd (DSSB) at RM20,000 each. DSSB, currently wholly owned by DNeX, holds a 60% stake in SilTerra, while Mimas holds the remaining 40%. If the RCPS are fully converted, Mimas would hold approximately 33.33% of DSSB’s enlarged ordinary share capital. — DNeX settles with partner Tethystronics over SilTerra dispute
Batu Kawan Bhd’s (KL:BKAWAN) unconditional mandatory takeover offer for MKH Bhd (KL:MKH) closed on Thursday with the group's stake in the property developer rising to 96.73%. Bursa Securities will suspend the trading of the MKH shares upon the expiry of five market days from the extended closing date, which will be effected from 9am on Oct 16. — Batu Kawan's stake in MKH rises to 96.73% at close of takeover offer
MISC Bhd (KL:MISC) has secured long-term charter contracts for five new liquefied natural gas (LNG) carriers from PETRONAS LNG Ltd, an indirect unit of Petroliam Nasional Bhd (PETRONAS). Each vessel will have a firm charter period of 20 years, with operations expected to commence in 2030. The contract value was not disclosed. MISC also entered into shipbuilding contracts with China’s Hudong-Zhonghua Shipbuilding (Group) Co Ltd for the construction of the five vessels. — MISC secures 20-year charters for five new LNG carriers from PETRONAS unit
Exsim Hospitality Bhd (KL:EXSIMHB) has secured a RM15.6 million subcontract from a unit of Nestcon Bhd (KL:NESTCON) for the supply and installation of building services and general building works. The works are scheduled for completion on Oct 31, 2028, followed by a 27-month defect liability period commencing from the date of the certificate of practical completion. — Exsim Hospitality secures RM15.6m building works contract from Nestcon unit
GDB Holdings Bhd (KL:GDB) is expanding its construction business through the proposed acquisition of two companies, while diversifying into property development to broaden its earnings base. The group plans to acquire a 51% stake each in Bina Tegas Sdn Bhd and BT Borneo Engineering Sdn Bhd for a total consideration of RM81.6 million. The acquisition will be funded through RM40.8 million in cash and the balance RM40.8 million via the issuance of 96.91 million new GDB shares at 42.1 sen each. — GDB buys two construction firms for RM82 mil, expands into property development
Cyberjaya Education Group Bhd (KL:CYBERE) is acquiring 24,777 sq m of vacant freehold commercial land in Sepang for RM15 million in cash to support its university’s expansion and future student facilities. The land is located near the university and it plan to invest in the land progressively in infrastructure and facilities for its growing student community. — Cyberjaya Education buys Sepang land for RM15m to support university growth
Life Water Bhd (KL:LWSABAH) is acquiring an industrial property in Kota Kinabalu for RM15 million to accommodate its business expansion. The group has signed agreement with Kee Foh Haw Sdn Bhd to acquire a 1.21-hectare parcel of land with a purpose-built office complex and ancillary workshop at KKIP Selatan, Kota Kinabalu Industrial Park (KKIP). The property, which has a built-up area of about 1,793 sq m, will be used as a warehouse. — Life Water buys industrial property in Sabah for RM15m
MTAG Group Bhd (KL:MTAG) is proposing to acquire two label manufacturers for an indicative RM13.8 million in cash to expand its product offerings and customer base. The group has signed a letter of intent with Khor Chun Chuan to acquire the entire stake in LH Label (M) Sdn Bhd and LH Labelprint Sdn Bhd. Khor is the sole shareholder of both companies, which manufacture and supply labels and related printing products. — Printing firm MTAG proposes RM13.8 mil cash acquisition of two label makers
UWC Bhd (KL:UWC) has dropped its plan to use part of the proceeds of its newly proposed RM384.13 million private placement to pay off borrowings, choosing instead to redirect the amount towards factory expansion and working capital. The exercise will involve the allocation of RM80.46 million originally earmarked for debt repayment, resulting in the total fund allocated for the expansion rises to RM230.13 million or roughly 60% of the proceeds from the placement. — UWC drops debt repayment plan in proposed RM384 mil placement to focus on expansion, operations
Al-`Aqar Healthcare REIT (KL:ALAQAR) has lodged two sukuk programmes to fund investments, refinance Islamic financing and meet working capital requirements. The programmes comprise an Islamic notes issuance programme of up to RM3 billion and an Islamic commercial papers programme of up to RM300 million. Both programmes, however, are subject to an aggregate nominal value limit of RM3 billion, rather than separate limits totalling RM3.3 billion. — Al-‘Aqar Healthcare REIT lodges sukuk programmes with combined RM3 bil limit