MAR 8th- AWC, Nexgram, Carimin, TSR Capital, PBA Holdings, Gadang, Damansara Realty, Reach Energy, CLIQ Energy, Encorp and Len Cheong

by **Cals** Tue 08 Mar 2016, 07:43

Companies in the news

[size=28]AWC, Nexgram, Carimin, TSR Capital, PBA Holdings, Gadang, Damansara Realty, Reach Energy, CLIQ Energy, Encorp and Len Cheong

By Supriya Surendran / theedgemarkets.com | March 7, 2016 : 9:47 PM MYT

KUALA LUMPUR (March 7): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Tuesday, March 8) could include the following: AWC, Nexgram, Carimin, TSR Capital, PBA Holdings, Gadang, Damansara Realty, Reach Energy, CLIQ Energy, Encorp and Len Cheong.

AWC Bhd hopes to earn total revenue of about RM555 million from the renewed 10-year concession awarded to the company to provide building maintenance support services for federal government buildings in southern Peninsular Malaysia and Sarawak.

In addition, the company expects to earn RM145 million from a new 10-year contract to undertake the refurbishment of critical assets deployed in the federal government building.

The building facilities management and engineering services provider told Bursa Malaysia today that its wholly-owned subsidiary Ambang Wira Sdn Bhd (AWSB) executed the privatisation agreement on March 7.

AWSB had been handling the management, maintenance, upkeep, and support services for the federal government buildings for the Southern Zone covering the states of Malacca, Negeri Sembilan and Johor, and Sarawak Zone, since June 1998.

Nexgram Holdings Bhd said its investigation committee has appointed Ferrier Hodgson MH Sdn Bhd as the special auditor to carry out independent verification over certain assets within Nexgram Group, such as cash and bank balances, and pre-development costs.

The special audit is expected to be completed within eight to 10 weeks, the information technology services provider said.

The special committee was formed on Jan 22, following inconsistencies found with regards to details of certain assets within the Nexgram Group.

The committee comprised its executive director Chen Chuen Sum, as well as three non-executive directors, namely Fu Lit Fung, Helmi Faisal bin Fuad and Zaharin Ahmad Zamani.

Carimin Petroleum Bhd has bagged a contract from Petronas Carigali Sdn Bhd to provide mechanical services.

The group, via its wholly-owned subsidiary Carimin Engineering Services Sdn Bhd, was awarded the contract on Feb 24.

The project will be for two years from March 2 this year to March 1, 2018, with an option to extend for another year.

The contract is on a call out basis with Petronas Carigali issuing the release order as and when there are requirements to perform the service.

As such, Carimin said the contract value was not disclosed as the total value of the scope of work will depend on the duration of the services and cost related to the project management, mechanical services, materials and other related services.

TSR Capital Bhd's wholly-owned subsidiary TSR Bina Sdn Bhd has bagged construction jobs worth RM268.9 million from Kwasa Land Sdn Bhd.

The group accepted the letter of award (LoA) from Kwasa Land for the construction and completion of common infrastructure works for work package contracts WPC1B and WPC1C at the Kwasa Damansara Township Development in Sungai Buloh, Selangor.

The project is for a period of 104 weeks and is expected to be completed by March 12, 2018.

PBA Holdings Bhd is expected to pay about RM61.5 million as water intake fee for a three-year period, effective this year.

In a filing with Bursa Malaysia today, PBA said it received a letter from the Penang government on Feb 26, saying the water intake fee is revised from three sen to six sen per cubic metre, based on the actual production volume from 2016 to 2018.

The water intake fee is regarded as recurrent related party transaction (RRPT) pursuant to the Listing Requirements by virtue of the substantial shareholdings held by the state government through the State Secretary Inc, Penang (SSI) in the company, and the relationship between the state government and SSI," the filing said.

"SSI is a major shareholder of the company, holding 55% of the total issued and paid-up capital of the company as at Dec 31, 2015.

"The RRPT involves the payment of annual water intake fee to Penang, of which SSI is deemed to have an interest," said PBA.

Gadang Holdings Bhd is proposing to undertake a private placement exercise in order to raise funds for the expansion of its property development business, which it expects will contribute positively to the group's future profitability.

The group said the expansion activities for its property development segment may include potential acquisition of additional viable land banks, and property development and investment projects.

The private placement will entail the issuance of up to 23.51 million shares or 10% of its issued and paid-up capital, the company said.

The placement share will not be priced at more than 10% discount to the five-day volume weighted average market price of Gadang's share prices, immediately before the price fixing date.

Assuming an indicative issue price of RM1.88 per share, the proposed private placement is expected to raise gross proceeds of up to RM44.2 million.

Damansara Realty Bhd has bagged a cleaning contract at the Kuala Lumpur International Airport (KLIA) worth RM35 million, excluding goods and services tax.

The property developer said its subsidiary TMR Urusharta (M) Sdn Bhd won the comprehensive cleaning and related services contract from Malaysia Airports (Sepang) Sdn Bhd.

It is for a three-year period from April this year to March 2019, with an option to extend for a further two years, on the same terms and conditions.

Reach Energy Bhd is acquiring a 60% stake in Kazakhstan's Emir-Oil Fields for US$154.9 million (RM638.2 million). Emir will be Reach Energy's first hydrocarbon asset.

The special purpose acquisition company said it was buying a 60% stake in Netherlands-based Palaeontol BV, which owns 100% of Emir.

Palaeontol BV is wholly owned by Palaeontol Cooperatief UA, which in turn is a wholly-owned subsidiary of Hong Kong-listed MIE Holdings Corp.

Reach Energy said that since the producing fields within the Emir-Oil Fields are already in production and with established infrastructure of gas pipeline, gas processing plant, oil processing, oil storage and transportation facilities in place, the proposed acquisition is expected to immediately contribute positively to its revenue.

CLIQ Energy Bhd said it has received numerous offers to undertake its liquidation and is currently in the process of shortlisting the liquidator.

The company will make an announcement once the liquidator is decided, it said in a filing with Bursa Malaysia.

To recap, the second oil and gas special purpose acquisition company listed on Bursa announced on Feb 24 that it will be liquidated after the Securities Commission Malaysia declined its request for more time to acquire its qualifying asset.

Encorp Bhd has been awarded a RM8.9 million contract by MSM Sugar Refinery (Johor) Sdn Bhd in relation to the proposed construction of a sugar refinery in Johor Bahru.

The group said its subsidiary Encorp Construction & Infrastructure Sdn Bhd received the LoA on March 4, and the contract period is from that date to Aug 3.

"Encorp Construction will be appointed as the main contractor for the construction works; the scope of works shall include construction and completion of earthworks and temporary site facilities for the project," said Encorp.

The awarded contract is deemed a related party transaction, as both companies have ties to the Federal Land Development Authority (Felda).

Len Cheong Holding Bhd said it is unaware of any reason for the recent sharp rise in price and volume of its shares.

In a filing with Bursa Malaysia today, Len Cheong said after having made due enquiries with the directors, major shareholders and such other relevant persons, it is not aware of any corporate development relating to the group's businesses and affairs, which has not been previously announced, that may account for the unusual market activity.

Earlier today, Bursa Securities had slapped Len Cheong with an unusual market activity query, after its share price spiked. Since Feb 29, shares of Len Cheong have risen 77.1% from 17.5 sen to a high of 31 sen last Friday (March 4).

Today, the stock closed down 4.8% at 29.5 sen, with 2.05 million shares exchanging hands, giving the group a market capitalisation of RM19.47 million.
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