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Sanichi issued UMA query

PETALING JAYA: Sanichi Technology Bhd was issued an unusual market activity (UMA) query by Bursa Malaysia Securities Bhd on the sharp fall in price of the company’s shares recently.

Sanichi’s share price has fallen 53% to 8 sen today from 17 sen last Thursday (Dec 6). At 5pm’s close, Sanichi saw 46.66 million shares changing hands.

Earlier this week, Sanichi entered into a memorandum of understanding with FKS Holdings Pte Ltd to supply fresh produce for international food and beverage industry and provide Japanese fine dining cuisine. Sanichi owns 70% of the joint venture, while the balance 30% goes to FKS.


Kian Joo hits limit up after Can-One MGO

PETALING JAYA: Kian Joo Can Factory Bhd’s share price hit limit up this morning, rising as much as 29.56% or 60 sen to RM2.63 upon resumption of trading, after a mandatory general offer (MGO) was launched by fellow can manufacturer and substantial shareholder, Can-One Bhd.

At 12.30 pm, the stock was still trading at RM2.63 with 173,000 shares done.

The trading of Kian Joo’s shares were suspended on Wednesday and Thursday, before resuming at 9 am this morning, to pave way for the announcement on MGO, which entails an offer price of RM3.10 per share or RM912.15 million for shares not already owned by Can-One in Kian Joo.

Can-One’s which also had the trading of its shares suspended for the same duration, rose 37sen or 19.17 sen to RM2.30 at early trade. At 12.30 pm, the stock was trading at RM2.14 with 674,100 shares done.

This comes after Can-One’s proposed acquisition of a 0.49% stake in Kian Joo from shareholder Tan Kim Seng for RM6.71 million or RM3.10 per share, raising its shareholding in Kian Joo to 33.39% from 32.9%.

The offer price represents a whopping 51.28% premium to Kian Joo’s five-day volume weighted average price of RM2.0492.

Can-One said the corporate exercise is part of the group’s expansion strategy to consolidate the can manufacturing business under Kian Joo in a bid to grow its sales and customer base.

It will also create enhanced scale and synergies for the enlarged Can-One group through, among others, streamlined procurement from suppliers to negotiate for bulk discount and improved operational efficiencies, resulting from economies of scale and integration.

In a related development, the Securities Commission Malaysia (SC) has reprimanded Can-One director and major shareholder Yeoh Jin Hoe and parties acting in concert (PACs) – including Can-One International Sdn Bhd (CISB) – for failure to undertake a mandatory offer for the remaining shares in Kian Joo after their shareholdings triggered the 33% MGO threshold.

This is breach of Section 218(2) of the Capital Markets & Services Act, 2007 and Paragraph 9(1)(a) of the Take-Overs Code.

The SC imposed a penalty of RM455,000 to be settled within 14 days against Yeoh and PACs as well as a restriction on the aggregate number of voting rights that may be exercised by the PAC in Kian Joo to not more than 33%.

If the proposed corporate exercise for which consultation with the SC was held on Dec 21, 2017 is not carried out within six months from the date of the commission’s letter, the PACs are required to reduce their collective holdings in Kian Joo to 33% and below.


Protasco down on SUKE contract termination

PETALING JAYA: Prostasco Bhd’s share price fell as much as 6.81% to 20.5 sen this morning after its construction contract for the proposed Sungai Besi-Ulu Kelang Elevated Expressway (SUKE) project was terminated due to delays in the project.

At 11.18 am the stock was still trading at 20.5sen with 994,600 shares done.

The group told the stock exchange yesterday that its subsidiary HCM Engineering Sdn Bhd received a letter of termination from Turnpike Synergy Sdn Bhd (TSSB).

“The notice of termination was served by TSSB as a result of an overall delay and physical delay of the project undertaken by HCM-Hatimuda JV(joint venture),“ it said in a filing with the stock exchange.

HCM-Hatimuda JV was awarded with the project by TSSB in August 2016 for about RM315.8 million and was expected to complete it in 30 months period by Feb 28, 2019.

HCM and Hatimuda hold 40% and 60% of the JV.

Protasco, however, said as the project was solely financed, implemented and managed Hatimuda, hence the termination does not have any significant impact on the group’s net assets and earnings for the current financial year and year ending Dec 31, 2019.


Vertice to sell 60% stake in Kumpulan Voir for RM32.62m

PETALING JAYA: Vertice Bhd is divesting its 60% equity interest in fashion retail business Kumpulan Voir Sdn Bhd to its executive deputy chairman Seow Khim Soon for RM32.62 million cash.

In a filing with Bursa Malaysia, Vertice said it has entered into a conditional sale and purchase agreement (SPA) with Seow for the proposed divestment. Vertice currently holds 100% stake in Kumpulan Voir.

Upon completion of the proposed disposal, Kumpulan Voir will become Vertice’s 40% associated company. Kumpulan Voir has an issued share capital of RM3.06 million, comprising 3.065 million ordinary shares as at the latest practicable date of the announcement.

Incorporated on April 14, 1988, the retail outfit is primarily involved in property, investment holdings, designing, branding, ladies’ apparels, footwear and accessories.

Vertice said the divestment is line with its strategic move to reallocate its financial resources, of which proceeds from the disposal will be utilised to fund the expansion of its construction division.

“Additionally, stiff competition from international and locally established brands in the market, higher operating costs, as well as consumers’ ever-evolving taste and preference had impacted the retail business further.

“This initiated Vertice to streamline and rationalise its retail division that involved the closure of seven non-profitable outlets and counters that were not performing well last year,” it said in a statement today.

Seow has indicated plans to relinquish his position as executive deputy chairman of Vertice upon completion of the proposed disposal, to focus on managing the fashion retail business.

According to Vertice, his resignation from Vertice is also to discharge him from any potential conflicts of interest, arising from his existing directorships in both Vertice and Kumpulan Voir.

The RM32.62 million consideration was arrived at after taking into consideration the consolidated net assets of Kumpulan Voir of RM54.36 million as at Sept 30, 2018. The group said there will not be any material gain or loss on disposal to be recognised.

The proposed disposal, which is expected to be completed in the first quarter of 2019, is subject to approvals from the shareholders at an EGM to be convened and any other relevant authorities if required.

Moving forward, Vertice will focus on the construction division which it believes has huge potential and better prospects.

“Since we diversified into the construction business, we have grown by leaps and bounds, and have bagged several major infrastructure projects, notably the Penang Mega Infrastructure Package 2 project worth RM815 million.

“With a strong order book in hand and net cash position status, we are optimistic of the growth prospects in the future and are well poised to bid for valuable projects that will provide more earnings visibility in the coming years,” it added.

Vertice’s share price closed unchanged at 90 sen today with 15,400 shares done.


Protasco JV for SUKE project terminated

PETALING JAYA: Protasco Bhd’s subsidiary HCM Engineering Sdn Bhd has received a letter of termination from Turnpike Synergy Sdn Bhd (TSSB) for the construction of the proposed Sungai Besi-Ulu Kelang Elevated Expressway (SUKE) project due to delays in the project.

“The notice of termination was served by TSSB as a result of an overall delay and physical delay of the project undertaken by HCM-Hatimuda JV,” it said in a filing with the stock exchange.

HCM-Hatimuda JV was awarded with the project by TSSB in August 2016 for about RM315.8 million and was expected to complete it in 30 months period by 28 February 2019.

HCM and Hatimuda hold 40% and 60% of the JV.

Protasco, however, said as the project was solely financed, implemented and managed Hatimuda, hence the termination does not have any significant impact on the group’s net assets and earnings for the current financial year and year ending December 31, 2019.

At 2.35pm, Protasco’s share price was trading 1.5 sen or 5.8% lower at 24.5 sen on 395,400 shares done.


Maxis, U Mobile extend 3G RAN share agreement

PETALING JAYA: Maxis Bhd and U Mobile Sdn Bhd have extended their 3G radio access network (RAN) share agreement in limited areas until end of June 2019.

In a filing with Bursa Malaysia, Maxis said its wholly owned subsidiary Maxis Broadband Sdn Bhd had entered into a 3G Network Agreement with U Mobile on Dec 12, 2018.

The 3G Network Agreement is for a limited scope of the provision of 3G network access services by Maxis Broadband to U Mobile from Dec 28, 2018 up to and including June 30, 2019.

Maxis does not expect the agreement to have material impact on its consolidated financials for the financial year ending 2018.

To recap, the two telcos had earlier signed a network sharing and alliance agreement dated Oct 21, 2011, under which Maxis was to share its 3G RAN for a period of 10 years.

However in June last year, U Mobile decided to end the agreement. The progressive termination of the agreement will be completed on Dec 27, 2018.

U Mobile said that it has embarked on an aggressive network replacement exercise across Malaysia over the past 18 months and is in its final phase of roll-out.

“To ensure the transition to its very own newly built network is seamless for customers, the telco decided on entering into the agreement,” it said in a statement today.

U Mobile said it is spending over RM5 billion on building a new and robust network to ensure its customers are able to enjoy superior experience.

Maxis’ share price fell 1.53% or 8 sen to close at RM5.14 today with 1.62 million shares traded.


AirAsia Group, AirAsia X ’s share price down on MAHB suit

PETALING JAYA: AirAsia Group Bhd’s share price fell as much as 2.65% to RM2.57 this morning, after being served with a legal suit by Malaysia Airports Holdings Bhd (MAHB) for refusing to collect the additional RM23 passenger service charges (PSC) per passenger at klia2.

At 11.42am, the stock was trading at RM2.60 with 8.95 million shares done.

Meanwhile, the share price of the airline group’s long-haul arm, Airasia X Bhd (AAX) was fell 2.12% to 23.0 sen this morning.

At 11.42am, the stock was still trading at 23.0 sen twith 989,400 shares done.

In a filing with Bursa Malaysia yesterday, AirAsia Group said its wholly owned subsidiary AirAsia Bhd (AAB) was served with an unsealed copy of a writ of summons in the sum of RM9.4 million by MAHB’s wholly owned subsidiary Malaysia Airports (Sepang) Sdn Bhd (MASSB) pertaining to PSC that AAB has not collected and refuses to collect from traveling passengers.

In a separate filing, AAX also said it has been served with an unsealed copy of a writ of summons in the sum of RM26.7 million for alleged PSC arrears.

The group said it will defend these proceedings vigorously as it believes that the claims are made without justification and are unreasonable.

Both AAB and AAX said they have collected RM50 per non-Asean international passenger, which has been paid to MASSB.


Malaysia Airports sues AirAsia, AirAsia X over PSC collection

PETALING JAYA: The spat between Malaysia Airports Holdings Bhd (MAHB) and AirAsia Group Bhd seems to be far from over as the low-cost carrier is now being sued for refusing to collect the additional RM23 passenger service charges (PSC) per passenger at klia2.

In a filing with Bursa Malaysia, AirAsia Group said its wholly owned subsidiary AirAsia Bhd (AAB) was served with an unsealed copy of a writ of summons in the sum of RM9.4 million by MAHB’s wholly owned subsidiary Malaysia Airports (Sepang) Sdn Bhd (MASSB) pertaining to PSC that AAB has not collected and refuses to collect from traveling passengers.

In a separate filing, AirAsia X Bhd (AAX) also said it has been served with an unsealed copy of a writ of summons in the sum of RM26.7 million for alleged PSC arrears.

The group said it will defend these proceedings vigorously as it believes that the claims are made without justification and are unreasonable.

Both AAB and AAX said they have collected RM50 per non-Asean international passenger, which has been paid to MASSB.

“However, MASSB wants us to collect another RM23 per passenger effective July 2018 which we have not and will not collect. MASSB insists that klia2 should charge the same rates as Kuala Lumpur International Airport (KLIA).”

“We strongly believe, as does the Malaysian public, and have so represented to MASSB numerous times, that klia2 is a low-cost airport and the charges levied should reflect the level of services provided,” they added.

The RM26.7 million summons slapped on AAX includes the uncollected additional RM23 per passenger and alleged arrears in PSC actually collected.

The group maintains that it is not obliged to collect the same PSC for passengers departing from klia2 and will not do so “for the sake of all the stakeholders” in the aviation and tourism industries.

The airline also intends to pursue cross claims against MASSB in relation to the infrastructure and state of the airports and its operations, which include major apron defects, random closure of runways, damage to aircraft and rupture of fuel pipelines.

“We believe these claims far exceed the claims MASSB is seeking. We have attempted – without success – on numerous occasions to engage MASSB on these issues but regrettably MASSB has decided to bring these issues to the public arena by commencing legal action,” it said.

AAB and AAX have instructed their solicitors to represent both companies in the proceedings and any further updates in respect of any material development will be made from time to time.

AirAsia’s share price fell 1.62% or 5 sen to close at RM3.04 today with 14.37 million shares traded, making it one of the top active stocks on the bourse today while AAX’s share price fell 2.08% or half sen to close at 23.5 sen with 3.93 million shares done.


Top Glove rebounds 3.42% after denying allegations on mistreatment of workers

PETALING JAYA: Top Glove Bhd’s share price rebounded this morning, rising as much as 3.42% to RM 5.74, after denying allegations on mistreatment of its workers and forced overtime (OT) on its migrant workers.

At 11.55am, the stock was trading at RM5.66 with 5.77 million shares done.

“Measure to prevent OT in excess of the allowed 104 hours a month have been implemented on a staggered basis across all Top Glove factories between March 2018 and November 2018,” it said in a filing with Bursa Malaysia yesterday.

The company said it has progressively invested in more automation for factory operations to reduce the need for manual labour and introduced new changing shift patterns to allow sufficient rest time for workers.

It also regularly conducts training to improve worker efficiency and quality of work.

“By December 2018, workers will not be working in excess of the 104-hour limit as permitted by the labour law,” it added.

Top Glove was responding to a British media report claiming that migrant workers at the firm are subjected to forced labour, forced overtime and debt bondage.


Prestariang extends losses, down 9.83%

PETALING JAYA: Prestariang Bhd’s share price continued to slide this morning, falling as much as 9.83% to 27.5 sen after saying that it was not notified by the government on the cancellation of the Immigration Department’s national immigration control system (SKIN).

At 11.20am, Prestariang which was the second most active counter of the day, was trading at 29 sen with 30.86million shares done.

Yesterday, its shares closed 15 sen or 33% lower at 30.5 sen on 78.21 million shares changing hands.

In a filing with Bursa Malaysia yesterday, the company said its subsidiary Prestariang SKIN Sdn Bhd (PSKIN) is not in default of the concession agreement and has not received any notice of default from the government.

The clarification was made in response to a report by a local daily quoting Home Minister Tan Sri Muhyiddin Yassin as saying that the RM3.5 billion SKIN project has been cancelled in order to make way for a new system.

Prestariang said PSKIN will seek clarification from the government on the matter and will make the necessary announcement on any updates.