Friday, July 13th, 2018

 

Wall Street flat as industrials offset slide in bank stocks

NEW YORK, July 13 — US stock indexes were little changed today as a slide in financials on the three big Wall Street banks reporting mixed results was offset by gains in industrials as the US-China trade rhetoric eased overnight. Wells Fargo’s…


US banks report mixed earnings as Wells Fargo lags again

NEW YORK, July 13 — Large US banks reported earnings that ran the gamut today, with JPMorgan Chase and Citigroup notching year-over-year increases while Wells Fargo’s profits fell. Shares of the three banking giants retreated early today, with…


Axiata to sell loss-making Pakistan unit

PETALING JAYA: Axiata Group Bhd is planning to sell its entire 89% stake in Multinet Pakistan (Private) Ltd for a sum of US$1 on a cash-free and debt-free basis.

The group told the stock exchange that its unit Axiata Investments (Labuan) Ltd (AIL) had entered into a share purchase agreement with Adnan Asdar Ali, who currently holds the remaining 11% stake in Multinet.

It noted that Multinet's financial performance has been declining for the last few years with accumulated losses of PKR754 million (RM25.64 million) for the financial year ended Dec 31, 2017.

Accordingly, the group said Multinet's contribution to its financial and business performance is immaterial.

Axiata assured that the exercise will not have any material effect on the group's consolidated net assets, gearing and consolidated earnings for the financial year ending Dec 31, 2018.

Multinet is engaged in the business of providing telecommunication and electronic media services including internet services, design, development, implementation of networks including a wide range of non-mobile telecommunications services with a focus on the business-to-business (B2B) segment of the market.

Axiata gained 2.7% or 11 sen at RM4.17 with 5.75 million shares being traded.


Scomi unit slapped with winding-up petition

PETALING JAYA: Scomi Group Bhd's (SGB) unit Scomi Special Vehicles Sdn Bhd (SSVSB) has been served with a winding-up petition over a RM1.09 million claim by Alexander Dennis (Malaysia) Sdn Bhd (ADM) and Alexander Dennis Ltd (ADL).

In a statement with Bursa Malaysia, SGB said SSVSB was served with the petition dated April 23, 2018 over the disputed sums which ADM and ADL alleged totalled RM1.09 million together with interest.

The debt arose from bus bodies provided by ADM with support from ADL in the UK. SGB noted that the debt had been progressively reduced under a consent order (CO) dated Nov 3, 2017.

“Subsequently SSVSB had defaulted payments under the CO”, it added.

SGB highlighted that its unit was in active negotiations with ADM and ADL to withdraw the petition and reinstate the installments under the CO, however it said the “negotiations were protracted and an amicable settlement could not be reached”.

Following that, it said an order was made on July 10 for the winding-up of SSVSB by ADM and ADL in the High Court of Malaya, Commercial Division and the extraction of the sealed order is now in progress.

“In the interim, SSVSB has sought legal advice on its next course of action. Based on such advice, SSVSB has instructed its lawyers to file an appeal to the Court of Appeal against the order.

“Furthermore, in order to maintain status quo, SSVSB shall also file an application to stay the order, to facilitate settlement of the claim by ADL,” it added.

SGB shares closed unchanged at 11 sen with 5.95 million shares changing hands.


One deal off for PRG, another is on

PETALING JAYA: PRG Holdings Bhd has aborted the proposed RM18.3 million acquisition of Roopi Medical Centre Sdn Bhd, but announced a plan to acquire a confinement service firm for RM5.35 million.

PRG said the termination came after the group and the vendors had mutually agreed to not extend the deadline to fulfil conditions of the agreements related to the purchase, according to its filing with the stock exchange.

With the deal now falling through, PRG said the vendors, namely Datuk Dr Roopi, Charanjeet and Linecom Corp Sdn Bhd will have to refund the deposit paid within 14 days.

In a separate filing, PRG announced that its wholly owned subdiary PRG Healthcare Sdn Bhd is acquiring 41.2% of Esther Postpartum Care Sdn Bhd (EPC) for RM5.35 million.

PRG also entered into a call option agreement for an additional 13.33% stake in EPC for RM2 million.

EPC, which provides confinement service in Malaysia based on Taiwanese postpartum concept, recorded a net loss of RM326,961 for the financial year ended 2016.

The vendors agreed to guarantee a profit before tax of not less than RM5.5 million for a period of two-and-a-half years.

PRG said the investment into EPC is part of the group’s vertical integration along the value chain in the wellness segment of the healthcare industry which is thriving and has opportunity for growth.

“The board believes that the investment into EPC is an attractive business proposition and is expected to diversify the stream of income of the group.”

PRG's shares fell 1.21% to close at 82 sen with 14,000 shares done.


Ringgit ends lower on higher US dollar demand

KUALA LUMPUR, July 13 — The ringgit extended yesterday’s losses to depreciate further against the US dollar today due to external factors which also dragged other emerging market currencies, dealers said. At 6pm, the local note finished at…


Indian billionaire Ambani topples Jack Ma as Asia's richest person

MUMBAI, July 13 — Mukesh Ambani overtook Alibaba Group founder Jack Ma to become Asia’s richest person as he positions Reliance Industries Ltd. to disrupt the e-commerce space in India. The chairman of India’s refining-to-telecoms…


Star Media receives notice of appeal after JAKS loses legal suit

PETALING JAYA: Star Media Group Bhd said it has received notices of appeal after the High Court denied JAKS Resources Bhd's (JRB) request to stop it from claiming a RM50 million bank guarantee.

Star Media told the stock exchange that it had also been served with unsealed copies of applications for “stay of execution and Erinford injunction”.

The company said its solicitors had advised that the Court's order to release the bank guarantees is in effect until such further order from the Court itself or an injunction is obtained to prevent the banks from releasing the bank guarantees.

Yesterday, Star Media announced that the Court had dismissed JRB's injunction to stop the company from claiming the bank guarantee provided for a joint development project in Section 13, Petaling Jaya as JRB failed to deliver vacant possession of Tower A of the project within the stipulated deadline.

The Court further ordered the banks to release the bank guarantees within five working days from the said dismissal.

Star Media's share price closed 3.77% higher at RM1.10 with 168,500 shares done, while JRB's shares fell 3.91% to RM1.23 with 6.04 million shares traded.


Bintai Kinden secures RM50.48m contract from TNB

PETALING JAYA: Bintai Kinden Corp Bhd has bagged a RM50.48 million contract from Tenaga Nasional Bhd (TNB) to undertake the establishment of a new 132kV GIS switching station in Selangor.

The group told Bursa Malaysia that the contract is estimated to be completed within 540 days from the commencement date.

It is expected to contribute positively towards the group's future earnings.

Bintai Kinden's share price closed unchanged at 13 sen yesterday on 152,400 shares done.


Berjaya Corp acquires 98% stake in Just KPop

PETALING JAYA: Berjaya Corp Bhd's (BCorp) wholly-owned subsidiary Berjaya HR Café Ltd has acquired 98% equity interest in South Korea's Just KPop Ltd (JKP), for KRW98 million(RM354,172).

The group told the stock exchange that following the subscription of 19,600 common stocks at par value of KRW5,000 (RM17.87) each, JKP has now become a 98%-owned subsidiary of BCorp.

JKP, which has not commenced operations, is intended to carry out food and beverages businesses and restaurants as its principal activities.

It was incorporated in South Korea under the Korean Commercial Act with an issued share capital of KRW100 million (RM357,473.68) comprising 20,000 common stocks at KRW5,000 each.