KUCHING: Press Metal Aluminium Holdings Bhd’s (Press Metal) proposed acquisition of a 50 per cent equity interest in Japan Alumina Associates (Australia) Pty Ltd (JAA) is expected to be earnings accretive for the company, analysts say. In a press statement, Press Metal said, via its 80-per cent owned subsidiary Press Metal Bintulu Sdn Bhd, it […]
PETALING JAYA: Country Heights Holdings Bhd’s subsidiary Mines International Exhibition Centre Sdn Bhd (MIEC) is vying for a potential tie-up with AsiaAuto Venture Sdn Bhd (AAV) to set up a joint venture entity to expand into the automotive lifestyle or other automotive-related industry.
AAV is involved, among others, in the business of conducting automotive-related programmes such as Asia Automotive Award event and the Asia Automotive Ambassador Pageant event.
The group told the stock exchange that the two parties have entered into a memorandum of understanding (MoU), which would be valid for a year.
Both will have an equity stake in the new company, with AAV holding 60% and MIEC, the remaining 40%.
The execution of the MoU is in line with the group’s business strategy to develop its own automotive lifestyle centre and other automotive industry related businesses.
On Bursa Malaysia today, Country Heights fell 1.53% to close at RM1.29 on volume of 1,000 shares.
KUALA LUMPUR: Vizione Holdings Bhd plans to accelerate its venture into Indonesia and Vietnam for housing and infrastructure projects by the third quarter of 2019, due to the weak sentiment in the local construction sector.
Managing director Datuk Ng Aun Hooi said it is still exploring opportunities and may need to bring forward its plan to expand into Southeast Asia sooner than the targeted 2020.
“Now, looking at Malaysia, if you want mega projects you have to wait for the next two years after they (government) review everything and make sure the fiscal account is in a healthy condition,” he told reporters after its AGM today.
He said Vizione will enter into joint ventures for its overseas housing projects and will work as a main contractor for concession holders for its infrastructure projects.
Vizione currently has no projects overseas but noted that its wholly owned subsidiary Wira Syukur (M) Sdn Bhd had previously worked on projects in Cambodia and Thailand (Bangkok).
Vizione is in the business of construction for residential, infrastructure and commercial projects. It has an outstanding order book of RM3.3 billion and a tender book of RM2.4 billion.
Its orderbook also consists of a job for LRT3, which the government has agreed to continue under a fixed price contract regime.
“We have to go back to the main contractor to renegotiate, but our package is small. We hope for more (jobs) to come in.”
Ng said Vizione aspires to achieve a minimum of RM600 million in revenue for 2019, from RM413.19 million in the financial year ended May 31, 2018, and RM1 billion by 2020 driven by its order book of mainly infrastructure and housing jobs.
On the upcoming Budget 2019, he is hoping that there will not be a drastic cut in development expenditure despite the government tightening its belt for a leaner budget.
“We need the government to help the private sector to have more jobs,” he added.
While building materials are exempted from the sales and services tax (SST), Ng said construction costs are going up for contractors as not all items are on the tax exempt list.
“Major materials like steel bar, concrete are free (from SST) but there are still many items that need to pay SST, up to 10%. For new tenders, we will put (factor) in the price; for earlier projects, we have to bear with it,” he said.
PETALING JAYA: Press Metal Aluminium Holdings Bhd rose as much as 1.86% to RM4.92 this morning, after announcing the acquisition of a 50% stake in Japan Alumina Associates (Australia) Pty Ltd (JAA) for A$250 million (RM738.98 million) yesterday.
At 11.26 am, the stock was trading at RM4.89 with some 1.20million shares done.
Press Metal told Bursa Malaysia that its 80%-owned subsidiary Press Metal Bintulu Sdn Bhd (PMBintulu) had on Oct 17 entered into an asset sale agreement with ITOCHU Minerals & Energy of Australia Pty Ltd and ITOCHU Corp for the acquisition.
JAA holds 10% participation interest in the Worsley Alumina unincorporated joint venture which owns and operates the Worsley Alumina Project, one of the world’s largest and lowest cost alumina producers.
Press Metal said the acquisition will provide the group the opportunity to access 5% of the annual production of the Worsley Alumina project which amounts to 230,000 metric tonnes of alumina per annum.
“The acquisition is an effective approach towards ensuring Press Metal’s long term access to raw material and reduces its exposure and reliance on third party suppliers.”
The proposed acquisition, which will be fully funded via external bank borrowings, is expected to be completed by the first quarter of 2019.
PETALING JAYA: Malaysian Resources Corp Bhd (MRCB) which was the most active counter at early trade, fell as much as 3.14% to 77sen despite getting the green light from the government for the Light Rail Transit Line 3 (LRT3) project.
At 11.18am, the stock was trading at 78.50sen with 51.84 million shares done.
Meanwhile, George Kent (Malaysia) Bhd, part of the joint venture of MRCB George Kent Sdn Bhd handling the project, rose as much as 7.89% to RM1.23 this morning.
George Kent was the fifth most active counter this morning.
At 11.18am, the stock was trading at RM1.21 with 21.96million shares done.
The government has agreed for the project to continue at a total cost of RM16.60 billion under a fixed price contract regime.
The RM16.60 billion includes land acquisition costs, interest payments during construction and other costs, while the implementation concept will be remodeled from a project delivery partner (PDP) to a fixed price contract.
To recap, George Kent and Malaysian Resources Corp Bhd (MRCB) were appointed the PDP of LRT3 on Sept 4, 2015 at an approved construction budget of RM9 billion.
In March, Prasarana requested an additional RM22 billion in government guarantee to ensure funding for the construction and completion of LRT3. This was on top of a RM10 billion bond facility guaranteed by the government in 2015.
However, in July, the Finance Ministry said it would not support additional funding for the 37km project unless Prasarana cut the cost of the project, which was estimated to rise to as high as RM31.45 billion.
KUALA LUMPUR: Finance Minister Lim Guan Eng said yesterday he will bring up the matter of the termination of MMC-Gamuda KVMRT (T) Sdn Bhd’s contract to build the underground portion of the mass rapid transit Line 2 (MRT2) for further deliberations at the next cabinet meeting. That’s because the cabinet was the one to pull the plug on MMC-Gamuda’s underground work contract of the MRT2, he added. “Let’s wait for the next cabinet meeting because I was not at the previous cabinet meeting as I was in Bali last weekRead More
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