LONDON, July 30 — British Prime Minister Boris Johnson’s government holds the first of a series of daily meetings today designed to ramp up preparations to leave the European Union without a Brexit deal on October 31. Government departments and…
PETALING JAYA: Tengku Ahmad Badli Shah Raja Hussin says he is still D’Nonce Technology Bhd chairman amid new largest shareholder Blackstream Investment Pte Ltd’s bid to remove all the board of directors.
Blackstream holds a 25.61% stake in D’Nonce.
Recall that Blackstream’s call for an EGM on June 12, called by Blackstream, hit a stumbling block after Tengku Ahmad announced the passing of the motion of adjournment.
However, Blackstream, in challenging the legality of the adjournment, proceeded with the EGM. It later claimed that all resolutions were passed, including the removals of Tengku Ahmad, Lim Teck Seng and Datuk Yeo Boon Leong as well as the appointments of Lim Siang Kai, Lam Kwong Fai (Lin Guang Hui) and Chong Kim Teck.
Interestingly, Ng Kok Wah resigned as D’Nonce director on the same day, citing personal reasons.
Tengku Ahmad told SunBiz that he was shocked with the latest developments despite the EGM adjournment. He also stressed that there was no walkout at the meeting as reported as it was officially adjourned.
“We are in the midst of finalising the official minutes of the meeting which is a true representation of the EGM and that any shareholders are able to refer to the matter,” he explained.
Last Friday, Blackstream and P’ng Chiew Keem filed an originating summons in the Kuala Lumpur High Court to, inter alias, declare the adjournment of the EGM to be null and void. It is fixed for hearing on June 24.
They also filed an application fixed for an injunction to, inter alias, restrain the company from proceeding with its AGM tomorrow. However, it was dismissed by the High Court.
Tengku Ahmad stressed that he is still the rightful chairman and that he will be attending tomorrow’s AGM held in Kota Baru, Kelantan to explain the matter to the shareholders.
Speaking of business operations, he believes that the company is on track to achieve greater heights with its future business plan.
“As the new management team, mandated since mid-January 2019, we have been actively ensuring all compliances and adherence to transparency and accountability are well preserved and emphasised.”
“Although this may be time consuming, and especially with what has transpired in the organisation, we are adamant about making that positive change and restoring the company into a strong organisation in the industry. We have constantly and clearly communicated with our shareholders of our timeline and initiatives in corporate roadmap and strategies,” he stressed.
Despite the interference from the third party, Tengku Ahmad said the most important thing is to ensure a sound future plan to lead the company to profitability.
D’Nonce is involved in the supply of packaging and other materials, integrated supply chain products and services and contract manufacturing.
It saw a net profit of RM2.8 million for the 16-month period ended Dec 31, 2018. For the first quarter ended March 31, 2019, it incurred a net loss of RM1.39 million.
In its latest annual report, the group said its future plan is to become a fully integrated global contract manufacturing company through expanding its reach in the local and overseas market.
KUALA LUMPUR, May 29 — Axiata Group Bhd and Norwegian multinational telecommunications company, Telenor ASA, will be conducting a due diligence exercise for their proposed merger, also known as MergedCo. President and group chief executive officer…
PETALING JAYA: Malaysia Airlines Bhd (MAB) and Japan Airlines (JAL) have signed a memorandum of understanding to pursue a joint business agreement, to enhance in-flight service quality of both carriers for flights between Malaysia and Japan.
“MAB and JAL will also seek to cooperate in a wider scope, such as exchanging best practices, exploring collaboration in other operational areas such as cargo and developing jointly tourism in both Japanese and Malaysian markets,” said MAB in a press release today.
Currently, both parties have already filed an application with the Malaysian Aviation Commission (Mavcom) and Japan`s Ministry of Land, Infrastructure, Transport and Tourism, seeking exemptions/immunity from antitrust laws.
If approved, MAB and JAL will strive to deliver convenient travel options to customers with a comprehensive network throughout Malaysia and Japan.
Previously in 2012, the collaboration between MAB and JAL started by offering codeshare flight operations between Malaysia and Japan, after the former joined the oneworld airline alliance.
According to MAB group CEO Izham Ismail, the two airlines have always had a strong commercial link.
“This partnership will provide better efficiencies and a more comprehensive network for our customers whilst also playing a key role in further strengthening trade ties between Malaysia and Japan, increasing tourism and promoting Kuala Lumpur International Airport as an air hub,” he said.
He also said that the collaboration would be an important milestone for its long term business plans as it looks to explore more strategic opportunities as well as deepen more partnerships.
Meanwhile, JAL president Yuji Akasaka said that the partnership can potentially increase passenger traffic between the two countries and open up commercial opportunities.
“Subject to the relevant approvals, MAB and JAL intend to start the joint business in 2020 to coincide with the Tokyo Olympics,” he added.
PETALING JAYA: Nova Pharma Solutions Bhd has entered into a shareholders agreement with Acara Juara Sdn Bhd for a joint venture in providing a total engineering solutions business focusing on turnkey or engineering, procurement, construction and commissioning (EPCC) services for advanced technology facilities.
According to the group’s stock exchange filing, the joint venture will be executed via a special purpose vehicle (SPV) to be incorporated later under the proposed name of Nova HiTech Solutions Sdn Bhd.
Under the proposed joint venture, the SPV will be a private company with limited liability by share with Nova Pharma owning a controlling stake of 51% while Acara Juara will hold the remaining 49% stake.
Under the proposed agreement, Nova Pharma’s contribution towards the SPV shall be promoting it as a turnkey or EPCC outfit in Taiwan and Southeast Asia.
It will also provide or identify an office space for its operation to support the accounting, management and administration services of the joint venture and to provide engineering support as and when needed.
Meanwhile, Acara Juara will lead the execution of EPCC or turnkey projects secured by the SPV, spearhead the project management areas and promote the SPV as a turnkey or EPCC outfit to provide total engineering solutions services for advanced technology facilities setup for industries including healthcare, pharmaceutical and biotechnology.
In addition, the company shall also prepare and table the annual business plan and budget to the board of directors for approval.
Nova Pharma said that the joint venture would enable it to further expand its existing business through undertaking of turnkey or EPCC projects.
“The proposed joint venture is expected to generate new income stream for Nova Pharma with each party contributing relevant expertise and skill set to the SPV, which will enhance Nova Pharma’s capabilities in advanced technology facilities setup,” it said.
The group said that the proposed joint venture is expected to contribute positively to the future earnings of the group.
NEW DELHI, May 19 — It was supposed to be Johnson & Johnson’s biggest manufacturing plant in India. It was to eventually employ at least 1,500 people and help bring development to a rural area near Hyderabad in southern India. Yet, three…
PETALING JAYA: MSM Malaysia Holdings Bhd has commenced its first maiden break bulk shipping of refined sugar from MSM Johor to China, exporting 7,000 tonnes of refined sugar.
Fully commissioned in November 2018, MSM Johor provides an avenue for the group to support domestic demand and further ramp up its export sales at a competitive pricing due to its strategic location at Tanjung Langsat Port.
It is also anticipated to reduce cost across the value chain, with strategic port facilities that contribute towards cost-efficiency as well as reducing reliance on manpower through better technology and automation.
According to the company, break bulk shipping reduces its logistic costs as it requires cargoes to be transported in unitised forms such as crated, bundled or palletised to which its refined sugars are carried in a 1.5 tonnes jumbo bag that ease the process of loading.
Besides that, break bulk shipping also allow goods to directly enter minimally-developed ports as some of them cannot accommodate large container ships.
The break bulk operations through Tanjung Langsat Port’s jetty involves cooperation between MSM Johor and FGV Transport Services Sdn Bhd to synergise group resources effectively.
MSM aims to export more than 300,000 tonnes of refined sugar and other sugar related products potentially to Asia Pacific region under its Business Plan 2019-2021 that includes exporting to Asian markets as part of its priorities to maintain market leadership towards becoming one of the top 10 sugar players in the world by 2020.
However, MSM said it will continue to be selective on export markets with a focus on high premium markets due to the challenging prices as a result of a global sugar glut.
“The break bulk shipping is a part of our new business model which focuses on maintaining cost discipline and operational efficiency in our business activities, which include raw sugar procurement, external warehouse as well as cost for freight, refining and finance. The advantage of our strategic standalone refinery in Johor together with the break bulk shipping initiative will provide an opportunity for us to export our refined sugar at a very competitive price,” said MSM group CEO Datuk Khairil Anuar Aziz.
“With our Johor refinery in place, we have the capacity to fulfil domestic demand and expand our market share on the export front whilst exploring additional revenue stream,” he added.
Khairil, who has been with MSM since November 2017 as the executive director, is taking over the responsibility from Mohd Shaffie Said who assumed the role of acting CEO since January 2018. Mohd Shaffie has been re-designated as group COO effective immediately.
“It comes with a huge responsibility and challenging journey ahead as the sugar industry is forecasted to be more volatile in 2019, in view of the glut sugar situation internationally and locally,” said Khairil, who is also FGV Holdings Bhd COO for sugar sector.
KUALA LUMPUR, April 25 — AEON Credit Service (M) Bhd’s net profit for the financial year ended Feb 28, 2019 (FY19) increased to RM354.62 million from RM300.06 million recorded in the previous financial year. Revenue rose to RM1.37 billion from…
PETALING JAYA: AirAsia Group Bhd has obtained shareholders’ approval for the disposal of 25 aircraft to Castlelake LP for US$768 million (about RM3.2 billion), which will free up cash for the group’s digital business plans.
Almost 100% of its shareholders voted in favour of the deal, according to the carrier’s filing with the stock exchange.
AirAsia Group CEO Tan Sri Tony Fernandes declined to speak to the media at its EGM today.
However, he said in a tweet that the move will result in the group having more cash for its digital business, and enable it to be asset-light.
“Selling our aircraft monetises all our aircraft at high prices and avoids residual risk, and allows us to return cash to shareholders and invest in our new digital business,” he said on Twitter today.
“Between accountants and analysts, investors get a raw deal. MFRS 16 had no impact of cash. I value companies on cash generation. Even with that standard and if you use P&L (profit & loss) for analysis, the impact of the new standard MFRS 16… the impact is about RM35 million a year. Not very material,” he added.
The disposal will be done via the sale of the group’s entire equity interest in Merah Aviation Asset Holding Ltd, which is held by the group’s indirect wholly owned subsidiary Asia Aviation Capital Ltd (AACL), to AS Air Lease Holdings 5T DAC, an entity indirectly controlled by US-based investment firm Castlelake.
In addition to the sale of shares of Merah Aviation, Castlelake will also purchase from AACL a total of four new aircraft to be delivered this year, as announced by the group in December last year.
The 25 aircraft comprising A320-200ceo and A320neo under Merah Aviation, together with the four new aircraft to be delivered (A320-200ceo), will be leased back to AirAsia Bhd and/or its affiliates.
Fernandes said in a statement in December last year that the transaction is part of AirAsia’s ongoing transformation into “something more than an airline”.
“As we move towards becoming a travel technology company, the disposal of these aircraft will not only unlock significant value but also bring us closer to our goal of being a truly digital company.
“Years ago, many analysts criticised us for having high gearing and owning assets. Now many understand why we did that. In a few years, our digital strategy will be understood as well,” he said.
Meanwhile, AllianceDBS Research said AirAsia’s higher leasing expenses post disposal of assets will more than offset the factors contributing to its steady outlook this year, and has cut its FY19 and FY20 earnings projections by 15% and 19.4% respectively.
“We made adjustments to our earnings to account for leasing expenses which costs more than owning an aircraft. We have also adjusted our fleet expansion plans in line with management guidance for an additional 18 aircraft for FY19. This brings the group’s consolidated ASK (available seat kilometre) growth to 9.8%, 5.5% and 4.8% for FY19, FY20 and FY21 respectively,” it said in its report today.
It maintained its “hold” rating for the stock, with a lower target price of RM2.38 which includes a 13 sen special dividend from the Castlelake sale.
The research house said the group’s outlook remains steady as the market leader in the industry with 41.7% market share and expansion plans are underway with 18 new aircraft for FY19.
“ASK is expected to grow at 9.8% and RPK (revenue per kilometre) at 10.1% backed by load factors of 84.7%. Subdued fuel prices would help support earnings. Ancillary income would also grow as AirAsia ramps up REDCargo and AirAsia.com,” it said, noting that ancillary business contributed 20% to group revenue in FY18.
For the longer term, it favours the stock for exposure in the e-commerce business which could potentially benefit from the upcoming growth.
PETALING JAYA: Radio frequency identification (RFID) solution provider SMTrack Bhd is venturing into the low-cost airline industry in Malaysia.
It has entered into a memorandum of understanding with Dexma Express Sdn Bhd to establish a working arrangement to explore the potential investment from the upcoming PT Citilink Indonesia’s operation in Malaysia.
SMtrack will acquire a 60% stake in Dexma’s operation for RM2.8 million.
Dexma is specialised in the sale of carriage by air services for both passenger or cargo. It has established a partnership program with Citilink where Dexma is the appointed general sales agent for air carriage services of passenger and cargo.
Dexma will establish another partnership programme with Citilink for the setting up of Citilink Malaysian’s operation.
Citilink, headquartered in Jakarta, Indonesia, is principally involved in the domestic and international carriage by air services, whether through scheduled or charter flights, for passengers and/or cargo. Citilink is a low-cost brand of Garuda Indonesia, set up to operate shuttle services between Indonesia cities.
Since July 30, 2012, Citilink has officially operated as a separate subsidiary of Garuda Indonesia, operating with its own call sign, airline codes, logo and uniform. Citilink main base is Soekarno-Hatta International Airport and Juanda International Airport.
Dexma will change its name to Citilink Aviation Malaysia Sdn Bhd subject to Companies Commission of Malaysia approval. It will also obtain air operator certificate and any other licenses or permits required for the purpose of Citilink Malaysia’s operation.
“The MOU is to assist the parties to open up to each other in respect of the potential investment in Citilink Malaysia’s operation,“ SMTrack said in a stock exchange filing.
The MOU will be in effect for a year from the date of the MOU and can be renewed by written agreement of both parties. It can be terminated by either party at any time by providing notice in writing to the other party.
SMTrack and Citilink irrevocable confirm and agree to enter into the share sales agreement within three months from the date of the MOU upon which it will supersede the MOU.
The parties agreed to sign non-disclosure agreement in sharing several relevant and necessary information for the potential investment.
Dexma is to provide the term sheet and business plan together with its financial projections and valuation for the planned Malaysian operation for SMTrack’s consideration.