April 6th-Companies in the news MRCB, AmBank Group, Chin Hin, Ranhill Holdings, Engtex, MAHB and Asia Knight

by **Cals** Wed 06 Apr 2016, 01:34

Companies in the news

[size=28]MRCB, AmBank Group, Chin Hin, Ranhill Holdings, Engtex, MAHB and Asia Knight

By Meena Lakshana / theedgemarkets.com | April 5, 2016 : 11:16 PM MYT

KUALA LUMPUR (April 5): Based on corporate announcements and news flow today, companies in focus tomorrow (Wednesday, April 6) could include: MRCB, AmBank Group, Chin Hin, Ranhill Holdings, Engtex, MAHB and Asia Knight.

Malaysian Resources Corporation Bhd (MRCB) will build a RM56.8 million cold storage processing and distribution centre in Kajang, Selangor, for the Giant retail chain.

MRCB's wholly-owned subsidiary MRCB Builders Sdn Bhd signed a contract today with GCH Retail (M) Sdn Bhd, through Jupiter Lagoon Sdn Bhd, a wholly-owned subsidiary of Hong Kong-based Dairy Farm International Holdings Ltd and an associate of GCH Retail.

GCH Retail operates the Giant chain of hypermarkets and supermarkets in Malaysia.

The 140,000 sq ft processing and distribution centre will be built on a five-acre site in Kajang on a 12-month fast track basis, and is expected to be completed in August next year.

AMMB Holdings Bhd (AmBank Group) has appointed Faradina Mohammad Ghouse as its group chief compliance officer from March 15.

In a statement today, AmBank Group said Faradina brings 22 years of experience in the financial services industry, having served in various capacities in the anti-money laundering (AML) operations, audit, securities and funds services and trade operations.

Prior to joining AmBank Group, she was the global head of transactions monitoring, standards and training with Citigroup AML operations, after serving as Asia-Pacific head of hub operations for AML transactions' monitoring.

Building material specialist Chin Hin Group Bhd has identified Johor as the location for its proposed RM85 million factory. The expansion plan is intended to help Chin Hin capture the Singaporean market.

Its managing director Chiau Haw Choon said the group had identified a 12ha (hectare) to 20ha, i.e. 30 acre to 50 acre site in Johor, for the factory. He said the factory is expected to be ready by end-2017.

However, he said the company had yet to purchase the land and expects to complete the land acquisition in a few months.

Ranhill Holdings Bhd has refuted reports that it offered Monaco-based company Unaoil US$40 million to convince senior officials in the Libyan government to award it a large housing construction contract.

In a bourse filing, Ranhill Holdings said neither the company nor any of its group of companies has entered into any transaction or arrangement with Unaoil.

“We wish to further clarify that at Ranhill [Holdings], we have [in] due process prescribed in the forms of policies and procedures [with] regards to engagement of third parties that include [the] due diligence process, and we practise code of conduct and good business ethics,” it added.

The Huffington Post and Australia’s Fairfax Media reported in a series of exposes last week about Ranhill’s involvement with Unaoil — a firm that allegedly helps multinational corporations win contracts in areas of the world where corruption is common.

Australia’s The Age reported that leaked emails show Ranhill approached Unaoil, after former Malaysian Prime Minister Tun Mahathir Mohamad had failed to convince Colonel Gaddafi to help with the matter.

The report also stated that Unaoil promised a US$200,000 personal kickback to a Ranhill executive, if he helped Unaoil extract large commissions from the Malaysian company.

Engtex Group Bhd has proposed to undertake a private placement of up to 44.55 million shares, representing 10% of its issued and paid-up share capital, to raise up to RM53.46 million in proceeds to pare down its debt.

In a filing with Bursa Malaysia, Engtex said the private placement shares will be issued to third party investors to be identified later.

The company said it is unable to determine the actual amount of proceeds to be raised from the proposed private placement, and the issue price of the placement shares will be determined and fixed by the board at a later date, after approvals have been obtained.

However, Engtex said based on an indicative issue price of RM1.20 per placement share, it is expected to raise RM36.35 million from an issuance of up to 30.29 million placement shares, under a minimum scenario and up to RM53.46 million from an issuance of up to 44.56 million shares in a maximum scenario.

Engtex said the exercise will strengthen the company’s capital position, as it plans to use the proceeds raised from the exercise, to pay its bank borrowings, which would give rise to interest savings and reduction in its gearing level.

Based on the company’s financial year ended Dec 31, 2014, Engtex’ gearing stood at 1.16 times, which is expected to reduce to 0.98 times under the minimum scenario, and further down to 0.73 times under a maximum scenario after the proposed private placement.

Kuala Lumpur Aviation Fuelling System Sdn Bhd (KAFS) is seeking an estimated RM456 million from Malaysia Airports Holdings Bhd (MAHB) for alleged losses and damages related to changes of the concession period under the Airport Facilities Agreement (AFA) dated Sept 26, 2007. The AFA gave KAFS the rights and authority to operate and maintain the aircraft fuelling system for a concession period of 50 years.

MAHB had announced on March 31 that its wholly-owned subsidiary, Malaysia Airports (Properties) Sdn Bhd [MA Properties], had received a notice of arbitration from KAFS regarding the matter on Feb 26.

In a filing with Bursa Malaysia today, MAHB said the amount being sought is still subject to KAFS' comprehensive evaluation.

However, MAHB said KAFS' estimated claims represent approximately 5% of MAHB Group's net assets as at Dec 31, 2015, and therefore, is not expected to have a material financial impact on MAHB Group.

MAHB said its solicitors hold the opinion that MAHB has a good arguable case against KAFS.

MAHB said the dispute arose after MA Properties and the Malaysian government entered into an operating agreement (OA) on Feb 12, 2009. The OA reduced the concession period under the AFA from 50 to 25 years.

Consequently, KAFS alleged that MA Properties had breached the AFA by entering into the OA.

KAFS, responsible for the management, operations, and maintenance of the fuel pipelines at Kuala Lumpur International Airport 2 (klia2), is a subsidiary of Petronas Dagangan Bhd, which holds a 65% stake in the company.

MA Properties holds a 20% stake in KAFS, while the remaining 15% stake is held by Malaysia Airlines System Bhd.

Plastic parts manufacturer Asia Knight Bhd is proposing to acquire Rapid Growth Technology Sdn Bhd, a fellow player in the plastics industry, for RM88 million, as part of its regularisation plan to exit Practice Note 17 (PN17) status.

Asia Knight said it is buying the 100% equity interest in Rapid Growth from Hor Lim Chee, Ng Choon Keat, Tan Song Chai, Lim Seat Hoe and Tan Ann Chee, and will pay RM58 million in cash, and RM30 million via the issuance of 300 million new shares.

The vendors have given their guarantee that Rapid Growth’s net profit will not be less than RM22 million for the financial years ending Dec 31, 2016 and 2017, it said in a filing with Bursa Malaysia.

As both Asia Knight and Rapid Growth are in the plastics industry, the enlarged group will be able to provide a broader range of products and value-added services to better service the group’s customers, it added.

Aside from the acquisition, Asia Knight’s regularisation plan involves a reduction of its share premium and share capital. The group is also proposing a seven-for-one rights issue, together with free detachable warrants.

The regularisation plan also includes a special issue of shares to investors to be identified later. The issue is aimed at raising funds for the acquisition of Rapid Growth and to comply with the 25% public shareholding spread requirement.

Asia Knight said the rights issue and special issue are expected to raise gross proceeds of RM40.69 million and RM20 million respectively. Of this, RM58 million will be used for the acquisition of Rapid Growth; and the remainder, for working capital and expenses for the regularisation plan.

Asia Knight expects to return to the black in the first half of the financial year ending June 30, 2016 (1HFY16), after the plan is implemented, when its accumulated net loss of RM54.55 million before the reduction exercise is turned around into a net profit of RM230,000.

Asia Knight fell into PN17 status in October 2014, following a disclaimer of opinion issued on its financial statements ended June 30, 2014.

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