Monday, October 9th, 2017

 

New Saudi ‘Fund of Funds’ aims to help SMEs

NEW YORK, Oct 9 — Saudi Arabia’s Public Investment Fund today announced a new investment arm to provide financing for small and medium-sized enterprises, the state-owned PIF said in a statement. The four-billion-riyal (RM4.5 billion) “Fund…


Serba Dinamik in joint venture with Tanzanian company

PETALING JAYA: Serba Dinamik Holdings Bhd’s unit will be partnering with Tanzania-based Junaco (T) Ltd (JTL) to set up a 45-metric tonne per day Chlorine Skid Mounted Chlor-Alkali plant in Msufini Area, Mlandizi Ward, in Tanzania.

The agreement will create an opportunity for Serba Dinamik International Ltd (SDIL) to be awarded the engineering, procurement, commissioning and construction (EPCC) of the plant valued at RM295.26 million (US$69.8 million). It will also be made the operations and management operator for a period of 10 years with an option for another five years.

JTL is a leading supplier of water-related solutions supplying its products and services, mainly water meters, water pumps, water treatment chemicals, pipes and fittings to water utilities, manufacturers, re-sellers and non-profit organisations. The company and its subsidiaries operate in more than 10 countries namely, Tanzania, South Africa, Mauritius, Netherlands, Malawi, Zambia, Uganda, Kenya, Democratic Republic of Congo and Dubai (UAE).

Serba Dinamik said in a Bursa Malaysia filing it had on Oct 6 entered into a joint venture agreement(JVA) with JTL, in which Serba Dinamik will be holding a 25% interest, while the remaining held by JTL.

In relation to that, the two parties also intend to set up a special purpose vehicle known as Msufini LLC, to be incorporated in a free trade zone in the United Arab Emirates, where the plant will be parked.

Under the agreement, SDIL is required to obtain all financing needed for the construction of the plant, while JTL is to provide the land as well as offtake contracts from reputable companies to support the application of financing for the project.

“Through this JVA, we will be able to expand our business into a new region that is Tanzania, which will ultimately expand our brand recognition into Africa for the first time. We are proud to be able to participate in the EPCC works, which is valued at RM295.26 million,” said Serba Dinamik’s managing director Datuk Dr Ir Mohd Abdul Karim Abdullah in a separate statement.

The JV partners will be splitting the profits in proportion to their respective shareholdings.


Bursa seeks feedback on Corporate Governance Guide revamp proposals

PETALING JAYA: Bursa Malaysia Securities Bhd has issued a consultation paper seeking public feedback on the proposals to revamp its Corporate Governance Guide.

It said in a statement, the proposed revamped guide is aimed at providing a practical guide for listed issuers to improve their corporate governance practices and reporting, with particular emphasis on the principles and practices that are contained in the new Malaysian Code on Corporate Governance (MCCG) released by the Securities Commission Malaysia on April 26.

Bursa Malaysia noted that while the proposed revamped guide still contains some of the useful information from the second edition of the Corporate Governance Guide issued by the exchange in 2012, it has been given a major enhancement in terms of its content and layout to improve its overall usefulness to directors and listed issuers.

The proposed revamped guide takes into account the new approach of “CARE” (Comprehend, Apply and Report) introduced in the MCCG.

Its structure is aligned to the new structure of the MCCG which comprises three principles – intended outcome, practices, and step-up practices for large companies as defined in the MCCG as well as guidance that follows each practice.

The consultation paper is available on the regulator’s website. It is open for feedback until Oct 23, 2017.


Multi Sports seeks more time to submit 2015 annual report

PETALING JAYA: Multi Sports Holdings Ltd is seeking an extension of time from Bursa Malaysia Securities Bhd until Nov 9 to issue its 2015 annual report, which was supposed to be issued by Oct 9 as per conditions set by the regulator, when deferring its delisting proceedings in August.

Its request is pending Bursa Malaysia’s response.

The company did however say that it had complied with another condition, which was to furnish Bursa Malaysia with a duly executed letter dated June 21 from its auditor RT LLP by or on Sept 11, as evidence to its agreement to the stock exchange regulator’s addendum. Multi Sports said the letter was submitted to Bursa Malaysia on Sept 8.

Besides the issuance of its 2015 annual report, Multi Sports was also required to announces / issue all the outstanding financial statements as at to-date, on or before Feb 28, 2018.

Trading in shares of Multi Sports, which is in the shoe sole business, has been suspended since May 2016.


Hovid’s MD launches offer to take company private

PETALING JAYA: Fajar Astoria Sdn Bhd and Hovid Bhd managing director David Ho Sue San are looking to take Hovid private with a 38 sen a share and 20 sen a warrant cash deal.

Fajar Astoria is a special purpose vehicle set up by TAEL Two Partners Ltd, a private equity firm, to undertake the offer for Hovid with Ho.

The offer involves the acquisition of 66.28% of Hovid’s total shares issued and 56.43% of total outstanding warrants as at Oct 5, 2017. Each warrant carries the right to subscribe for one new share during the five-year exercise period which expires on June 5, 2018 at an exercise price of 18 a share, payable in cash.

Ho currently holds 33.72% of the shares and 43.57% of the warrants.

The share offer price represents an 18.75% premium to the last transacted price of the shares on Oct 6, 2017 and 20.55% premium to the five-day volume weighted average market price (VWAP) of the shares up to Oct 6, 2017.

The warrant offer price represents a 42.86% premium to the last transacted price of the warrants as at Oct 6, 2017 and 45.02% premium to the five-day VWAP of the warrants up to Oct 6, 2017.

The offer is conditional upon the joint offerors having received acceptances by the holders of the offer shares resulting in the joint offerors holding in aggregate not less than 90% of the offer shares.

Trading in Hovid shares was suspended today and resumes tomorrow. The stock closed at 32 sen last Friday with 1.04 million shares traded. It has a market capitalisation of RM262.68 million.


Kronologi Asia to buy Hong Kong-based Quantum Solace for up to RM45m

PETALING JAYA: Enterprise data management firm Kronologi Asia Bhd proposes to acquire Quantum Storage (Hong Kong) Ltd for up to RM45 million.

The group told Bursa Malaysia today that the acquisition sum will be satisfied via a combination of the issuance of up to 40.82 million Kronologi Asia shares at the issue price of 98 sen per share and cash paymnent of up to RM5 million.

Quantum Storage is engaged in the enterprise data management infrastructure technology business providing data storage, protection and archival solutions to enterprises. It is based in Hong Kong and Taiwan and it supplies products to customers in Hong Kong, Taiwan and elsewhere.

The vendor, Law Chee Yii, warrants to Kronologi Asia that Quantum Storage will achieve a profit after tax (PAT) of US$1.2 million based on Quantum Storage’s audited accounts for FY17.

Kronologi Asia is of the view that the profit warranty of US$1.2 million (RM5.08 million) for FY17 is reasonable and realistic after taking into consideration Quantum Storage’s unaudited PAT of US$580,000 for six months of FY17, as well as its prospects.

Kronologi Asia plans to fund the cash portion of up to RM5 million via the proceeds raised from its private placement that was completed on Aug 25.


Stocks in Focus (10-10-2017)

KUALA LUMPUR: Based on corporate announcements and news flow today, stocks in focus on Tuesday (Oct 10) may include: Hovid Bhd, Sanichi Technology Bhd, Kronologi…


GE names hedge fund Trian executive Ed Garden to board

NEW YORK, Oct 9 — US industrial conglomerate General Electric Co, which major shareholder Trian Fund Management has been pressuring to conduct a more thorough restructuring, appointed the hedge fund’s chief investment officer to its board toay….


Association of Banks in Malaysia denies Rehda’s claims

KUALA LUMPUR: The Association of Banks in Malaysia (ABM) has refuted allegations that house buyers are finding it harder to obtain a housing loan and that loan approval time is increasing.

ABM said banks have always been supportive in providing home loans to all eligible borrowers. The overall housing loan approval rates remains high at 73% of the applications in the second quarter of 2017. Further, 72% of housing loan borrowers are first-time house owners under the affordable home category.

“For the first eight months of 2017, commercial banks approved over RM42.2 billion and disbursed RM39.5 billion in loans for the purchase of residential properties. Financing therefore remains available for eligible borrowers,” ABM said in a statement yesterday, in response to claims by Real Estate and Housing Developers’ Association (Rehda).

ABM said its member banks take an average of two to nine working days to process a housing loan application with complete documentation submitted by the applicant.

“For unsuccessful applicants, they are generally informed of the status of their application within one to two working days. Therefore, the 60-90 days taken for loans approval as stated by Rehda is not reflective of the speedy approval process of housing loans by banks,” said ABM.

Extensive information including statistical data on housing loans can be obtained from the Housing Watch website at www.housingwatch.my.


ABM denies Rehda’s claims

KUALA LUMPUR: The Association of Banks in Malaysia (ABM) has refuted allegations that house buyers are finding it harder to obtain a housing loan and that loan approval time is increasing.

ABM said banks have always been supportive in providing home loans to all eligible borrowers. The overall housing loan approval rates remains high at 73% of the applications in the second quarter of 2017. Further, 72% of housing loan borrowers are first-time house owners under the affordable home category.

“For the first eight months of 2017, commercial banks approved over RM42.2 billion and disbursed RM39.5 billion in loans for the purchase of residential properties. Financing therefore remains available for eligible borrowers,” ABM said in a statement yesterday, in response to claims by Real Estate and Housing Developers’ Association (Rehda).

ABM said its member banks take an average of two to nine working days to process a housing loan application with complete documentation submitted by the applicant.

“For unsuccessful applicants, they are generally informed of the status of their application within one to two working days. Therefore, the 60-90 days taken for loans approval as stated by Rehda is not reflective of the speedy approval process of housing loans by banks,” said ABM.

Extensive information including statistical data on housing loans can be obtained from the Housing Watch website at www.housingwatch.my.