LPI, MAHB, EWI, YTL Corp, CIMB, Elsorft, YGL, Perak Corp, Rohas and Mudajaya

(April 10): Based on corporate announcements and news flow today, companies that might be in focus on Tuesday (April 11) include the following: LPI Capital Bhd, Airports Holdings Bhd, Eco World International Bhd, YTL Corp Bhd, CIMB Group Holdings Bhd, Elsorft Research Bhd, YGL Convergence Bhd, Perak Corp Bhd, Rohas Tecnic Bhd and Mudajaya Group Bhd.

LPI Capital Bhd has started the year on a positive note, reporting a 7.9% rise in first-quarter net profit largely contributed by profit from the general segment.

Net profit for the three months ended March 31, 2017 (1QFY17) grew to RM70.56 million or 21.25 sen a share from RM65.39 million or 19.7 sen a share a year ago.

Revenue increased 8.4% to RM347.64 million from RM320.56 million in 1QFY16.

Malaysia Airports Holdings Bhd (MAHB) handled 8.09 million passengers at the 39 airports it manages in the country in March, an increase of 10.6% from 7.32 million passengers in the same month last year.

The airport operator attributed the overall increase in passengers to growth in airline seats and an improvement in average load factors.

MAHB said overall average load factors improved to 76% in March 2017, up 2.3 percentage points compared with the same month last year.

It added that the international segment saw a 12.4% increase to 3.95 million from 3.51 million, while domestic passengers rose 9% to 4.15 million from 3.81 million.

Overall aircraft movements also increased by 2.6% year-on-year in March 2017.

Eco World International Bhd (EWI)’s wholly-owned unit Fortune Quest Group Ltd has proposed to acquire an 80% stake in Salcon Development (Australia) Pty Ltd for RM400,896 and agrees to repay part of its liabilities, in order to develop a mixed development in Melbourne, Australia.

EWI said Fortune Quest entered into a conditional share sale and purchase agreement (SPA) with Salcon Development Sdn Bhd, a wholly-owned unit of Salcon Bhd, for the purchase of 80 shares in Salcon Development (Australia) or PropCo.

A shareholders agreement would be signed between Fortune Quest, Salcon Development and the PropCo to regulate the rights and obligations, and to undertake the development of about 2,128 square metres of freehold land at Claremont Street, South Yarra in Victoria, Australia.

Upon completion of the share sale agreement, Fortune Quest shall repay a sum equivalent to 80% of total advances owing by PropCo to Salcon Development. Thereafter, the total advances owing by Propco to Salcon Development will be capitalized into shares by the Propco.

YTL Corp Bhd announced that its subsidiary YTL Land Sdn Bhd has disposed of all its holdings in YTL Majestic Sdn Bhd to YTL Hotels & Properties Sdn Bhd (YTLHP) as part of an internal reorganisation of the group’s structure.

The group said YTL Land had disposed of one million shares, representing the entire issued share capital of YTL Majestic, to YTLHP for RM1 million.

YTL Majestic — involved in hotel operations — was incorporated in Malaysia in 1990.

CIMB Group Holdings Bhd has appointed Olivier Crespin as chief fintech officer of its new standalone unit CIMB FinTech, which will explore new and innovative solutions.

Crespin’s appointment commences in June, subject to regulatory approvals.

In a statement today, CIMB said Crespin has more than 28 years of experience in the banking sector, having served highly reputable global and ASEAN-based organisations, and has held different business and operational positions across Europe, Latin , Asia and North .

He was also involved in the introduction of India’s first completely paperless, signatureless, branchless mobile banking, based on biometrics and artificial intelligence.

Elsoft Research Bhd has appointed Eng Chin Peng as its new chief operating officer effective today.

Eng, 52, has more than 25 years’ experience in engineering, product development, manufacturing and quality control.

His previous positions include senior operating manager for Elsoft Research in June 2016, as well as overseeing operations at Crest Ultrasonic Malaysia to support Crest sales worldwide.

YGL Convergence Bhd has proposed a 20% private placement to raise up to RM6.19 million to be used for business expansion, research and development, and working capital.

YGL said the proposal would involve up to 38.7 million shares representing 20% out of 193.57 million total shares that would be placed with third party investors who are to be determined later.

The issue price will also be fixed later. For illustrative purposes, the price is assumed to be at 16 sen per placement share, representing a discount of about 10% to the five-day volume weighted average market price of YGL shares up to April 6 of 17.7 sen.

YGL said the proposed private placement enables YGL to look at potential acquisitions and marketing activities that would strengthen its position as a regional company with its own core products and intellectual properties.

Perak Corp Bhd, via its subsidiary Lumut Maritime Terminal Sdn Bhd (LMT), plans to buy four leasehold plots of land in Manjung from Perbadanan Kemajuan Negeri Perak (PKNP) for RM57 million.

LMT intends to hold the land, measuring 115.31 acres in total, with the view to develop and construct another port or terminal there.

The subsidiary currently owns and operates the Lumut Maritime Terminal, and also operates and manages the Lekir Bulk Terminal under an agreement with Lekir Bulk Terminal Sdn Bhd.

Perak Corp said the proposed acquisition will be funded by LMT through internally-generated funds and borrowings.

Rohas Tecnic Bhd plans to buy a 75% equity interest in HG Power Transmission Sdn Bhd (HGPT) for RM101.67 million.

Rohas Tecnic said it has entered into a Heads of Agreement (HoA) with PT Safe Tower Systems Sdn Bhd and Kemuncak Agresif (M) Sdn Bhd to acquire 4.9 million shares or a 75% stake in HGPT.

“The company and the vendors have agreed to use their best endeavours to negotiate and agree on all terms of the definitive share sale agreement to be entered in relation to the proposed acquisition within 60 days of the HoA,” it added.

Rohas Tecnic said the purchase consideration will be satisfied via a combination of cash of RM22.5 million and 83.3 million new shares in Rohas Tecnic, which are to be allotted issued to Safe Tower Systems and Kemuncak Agresif, at an agreed issued price of 95 sen per Rohas Tecnic share.

Mudajaya Group Bhd said today GE Power Services (Malaysia) Sdn Bhd and Alstom Power Systems have agreed to pay RM60 million cash to settle outstanding claims relating to the construction of a coal-fired power plant in Tanjung Bin, Johor.

Mudajaya said after protracted negotiations, its wholly-owned subsidiary Mudajaya Corp Bhd (MCB) has finally reached a settlement with GE Power Services (Malaysia) Sdn Bhd and Alstom Power Systems over the outstanding claims.

The power plant is coal-fired with a capacity of 1,000 MW. It was completed and handed over to the client in March last year.

Mudajaya said the settlement will be used towards new and existing projects. It also still retain its rights to any recovery from insurance proceeds that were part of its total claims, via GE as the consortium leader for the project.

Source: The Edge Markets

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