6 Jul 2016

Malaysia Market: Companies That May Be In Focus On Friday

Based on corporate announcements and news flow today, companies that may be in focus on Friday (July 8) could include: Bertam, Guocoland, TH Heavy, Melewar, Halex, Goldis and ML Global. 



Bertam Alliance Bhd is selling two parcels of freehold land at Batu 9, Cheras, with a collective land size of 47,930 sq m (11.8 acres) to a unit of Guocoland (Malaysia) Bhd, for RM128 million.
Bertam announced to Bursa Malaysia today that it expects to recognise a RM79.84 million disposal gain arising from the land deal.
The sale was effected through Bertam's unit MV Properties Sdn Bhd, which inked a sale and purchase agreement with Tujuan Optima Sdn Bhd, Guocoland's subsidiary.
The land's audited net book value (NBV) was RM42.96 million as at Dec 31, 2015 (FY15). It was valued at RM125.11 million, as appraised by independent valuer DTZ Nawawi Tie Leung Property Consultants Sdn Bhd, on March 19, 2016.
The proceeds will be utilised for borrowings repayments and working capital. Upon that, the group should have zero gearing and enjoy an interest cost savings of about RM7.3 million a year based on the effective rate of 6% to 8.6% per annum.
The company has accumulated losses of RM38.51 million, while total borrowings stood at RM103.87 million as at Dec 31, 2015 (FY15).
Meanwhile, Guocoland intends to fund the deal fully by cash via internally generated funds and/or bank borrowings.
Guocoland does not need to seek approval from its shareholders for the land purchase. But Bertam need shareholders' approval for the sale.
TH Heavy Engineering Bhd (THHE) was slapped with two winding-up petitions from its creditors for a collective sum of US$8.88 million (RM35.6 million) in relation to the supply of equipment and work done at the floating production, storage and offloading (FPSO) Layang project.
In separate bourse filings today, THHE said the first petition was by MIB Orwell Offshore Ltd and was presented on June 30 to the Kuala Lumpur (KL) High Court. A copy of the petition was served to THHE on July 4.
It said the petitioner is claiming US$7.61 million for the supply of equipment and machinery for the FPSO Layang project, and the case management for the petition has been fixed on July 20.
The second petition is by MIB Italiana SPA and was presented to the KL High Court on July 1; a copy of it was also served to THHE on July 4.
THHE said the second petitioner is claiming US$1.27 million for the supply and installation of quick release hook and mooring hawser for the same project. Case management for this petition has been set on July 15.
THHE said it has sought necessary legal advice on both matters with a view of defeating the petitions altogether, adding that the petitions would not have any additional financial and operational impact on the group.
Melewar Industrial Group Bhd has decided to drop its appeal against MyCC's finding that Megasteel Sdn Bhd did not abuse its dominant position or practise anti-competition margin squeeze in the cold rolled coil market.
Megasteel's lawyers have been informed today that Melewar had, on June 21, withdrawn the appeal with no objection from MyCC, which stands for the Malaysian Competition Commission, according to a bourse filing by Melewar's parent company, Lion Corp Bhd.
Lion Corp, which owns 79.89% of Megasteel, said following Melewar's withdrawal, the case against Megasteel is now 'closed' and that MyCC's finding of non-infringement of the Competition Act 2010 by Megasteel is 'final'.
Halex Holdings Bhd's executive director and chief executing officer (CEO) Chan Yee Keen has decided not to renew his employment contract upon expiry of the contract on Sept 30.
According to its filing with Bursa Malaysia today, Halex said Chan, 45, had informed that he would like to pursue his own personal interests after fulfilling his contract with the company.
He was appointed as the group's executive director and CEO on Oct 1, 2015.
"The board meanwhile would be taking steps to engage a replacement and an appropriate announcement would be made in due course," it said.
Goldis Bhd has declared a first interim dividend of two sen per share for the financial year ending Dec 31, 2016, to be paid out on Aug 12.
The company announced to Bursa Malaysia that the ex-date for the dividend will be on July 22.
"Holders of Redeemable Convertible Cumulative Preference Shares (RCPS) are reminded to lodge with the registrar of the company, Tricor Investor & Issuing House Services Sdn Bhd, their conversion forms by 5pm on or before July 14, 2016, in order to be entitled to the first interim dividend," the filing read.
ML Global Bhd has redesignated its non-independent director Tan Sri Lim Hock San as its managing director (MD), replacing Beh Hang Kong who was redesignated as executive director, effective today.
The boardroom changes came after LBS Bina Group Bhd, an entity controlled by Lim, gained control of ML Global with an equity stake of 50.92%.
Beh has been MD at ML Global since Jan 16, 2008. He has been appointed as executive director at Yong Tai Bhd since Jan 15, 2016.
Meanwhile, ML Global also redesignated its non-independent director Datuk Wira Lim Hock Guan as its executive director.

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