April11-Companies in the news Econpile, FGV, AmBank, Tan Chong, Perak Corp, DRB-Hicom, HCK Capital, Maxis, Sime Darby and ConnectCounty

by **Cals** Sun 10 Apr 2016, 23:07

Companies in the news

[size=28]Econpile, FGV, AmBank, Tan Chong, Perak Corp, DRB-Hicom, HCK Capital, Maxis, Sime Darby and ConnectCounty

By Meena Lakshana / theedgemarkets.com | April 8, 2016 : 10:36 PM MYT

KUALA LUMPUR (April 8): Based on corporate announcements and news flow today, companies that will be in focus next Monday (April 11) may include: Econpile, FGV, AmBank, Tan Chong, Perak Corp, DRB-Hicom, HCK Capital, Maxis, Sime Darby and ConnectCounty.

Econpile Holdings Bhd has bagged a RM54.5 million contract to undertake substructure works for a commercial development in Shah Alam, Selangor.

In a bursa filing, Econpile said its wholly-owned subsidiary Econpile (M) Sdn Bhd (EMSB) has received a letter of award from Prestij Permai Sdn Bhd for the proposed works. The duration of the contract is 20 months, with complete expected in November 2017.

Econpile said the contract is expected to contribute positively to the revenue and earnings of the group for the financial year ending June 30, 2016.

Felda Global Ventures Holdings Bhd (FGV) has called off its deal to purchase a 55% stake in China-based Zhong Ling Nutril-Oil Holdings Ltd for RM976.25 million, due to unfulfilled conditions.

In a bourse filing, FGV said conditions precedent set out in the two sale and purchase agreements (SPAs) to effect the stake purchase could not be fulfilled within the stipulated time frame. They have also not been waived.

FGV said it has issued notices to terminate both SPAs, and will not be pursuing or taking any legal action pursuant to the termination. It added that the termination of the buy would not have any financial impact on the group.

ANZ Banking Group is weighing the sale of its 24% stake in Malaysian lender AMMB Holdings Bhd (AmBank) and is also seeking to reduce its 20% stake in China's Shanghai Rural Commercial Bank, as the Australian bank steps up efforts to exit minority stakes in Asia, according to Reuters.

The report, quoting people familiar with the matter, said ANZ CEO Shayne Elliott, who took over at the beginning of this year, is turning his focus back on the bank's core home market, reversing past efforts to build a pan-Asian footprint.

The proposed Malaysian sale by ANZ is also partly due to AmBank's involvement in the political scandal linked to state fund 1Malaysia Development Bhd (1MDB) and Prime Minister Datuk Seri Najib Razak, three sources told the news agency.

Sources said ANZ has held talks with investment banks about a possible exit strategy, and that Chinese and Taiwanese buyers are likely to be interested in buying ANZ’s stake in the Malaysian bank, though no specific banks were named, the report added.

Tan Chong Motor Holdings Bhd has obtained the green light from the Vietnamese authorities to establish a wholly-owned subsidiary, TC Systems (Vietnam) Co Ltd, that will undertake a US$5 million (RM19.51 million) information technology (IT) project there.

In a bourse filing, Tan Chong said its wholly-owned subsidiary, TCMSC (Labuan) Pte Ltd, has received an enterprise registration certificate from the Hanoi’s authority, confirming the registration of TC Systems (Vietnam).

TC Systems (Vietnam) will produce software products, providing IT solutions and services and integrating IT systems in Hanoi City, under a US$5 million, 30-year contract to develop IT capabilities and to tap into IT talents in Vietnam.

Perak Corporation Bhd (Perak Corp) said it is raising its stake in the company that is developing the country's first animation theme park, Animation Theme Park Sdn Bhd (ATP), to 51% from 49%, by an additional subscription of shares worth RM4.5 million, in order to ensure the park's completion.

With this transaction, ATP becomes Perak Corp's indirect subsidiary, allowing it to leverage on Perak Corp's resources in order to ensure completion of the theme park, known as Movie Animation Park Studio, in Meru Raya, Ipoh.

ATP, a joint venture between Perak Corp and RSG Maps Sdn Bhd, has yet to commence business operation, as the theme park is still under construction. It was previously reported that the first phase of the RM450 million theme park was expected to be completed by the first quarter of 2016.

The government has approved a RM1.5 billion soft loan to DRB-Hicom Bhd’s wholly-owned unit, Proton Holdings Bhd, to pay vendors for components supplied.

Announcing this today, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the loan, however, comes with conditions attached to initiate a restructuring process for the loss-making national car maker.

Proton must come up with a "turnaround plan" for the company and a strategic plan to widen its local and international markets, he said. It must also sign up a new "leading foreign partner" that will assist the car maker in research and development, in order to ensure it is progressive and internationally competitive.

A task force headed by Pemandu chief executive Datuk Seri Idris Jala will be set up to look at Proton's previous business model and identify measures to overcome identified weaknesses, said Mustapa.

HCK Capital Group Bhd said its indirect 70%-owned unit HCK Premier Builders Sdn Bhd (HPBSB) has entered into a joint venture (JV) development agreement with Daya Builders Sdn Bhd for the development of affordable apartment units in Kuching, Sarawak.

According to HCK Capital’s bourse filing, the 448 units of walk-up apartments will be constructed on a 16.54-acre piece of land.

Under the agreement, Daya Builders, which is an agent for the Housing Development Corp of Sarawak (HDC), appointed HPBSB as the developer to plan, develop, manage, construct, implement and complete the project, to be undertaken in three phases and completed in 36 months from the commencement of each phase.

On completion of the project, HPBSB will be entitled to 376 units of walk-up apartments, with HDC being entitled to 71 units, and Daya Builders to one unit.

HCK Capital said the project will broaden its earnings base and expand upon its property-related business.

Maxis Bhd chief executive Morten Lundal has apologised for the telco’s “tailored plans” which has angered some of its customers.

Addressing customers via a live streaming video from his office this afternoon, Lundal and head of consumer business Dushyanthan Vaithiyanathan acknowledged that Maxis had been late in responding to data upgrades and apologized for the tailored plans.

Dushyanthan also explained that the telco will be launching its upgraded plans later this month, but announced free upgrades for existing MaxisONE plan customers in the mean time.

Sime Darby Property Bhd has achieved RM1 billion worth of property sales year-to-date (YTD), accounting for 40% of its RM2.5 billion sales target for financial year ending June 30, 2016.

Sime Darby Property managing director Datuk Jauhari Hamidi said today that the developer was confident of achieving its sales target for the year, driven by the group's 18 property launches over the next three months.

He said Sime Darby usually starts to be more aggressive in sales, in the second half of its financial year.

ConnectCounty Holdings Bhd, which manufactures industrial cables and connectors, expects current year revenue and profit growth to mirror the preceding year's, as global sales of interconnects is expected to grow by approximately 5.8% this year, which should positively impact its business.

As such, its growth and momentum last year should continue this year, executive deputy chairman Ang Chuang Juay told pressmen today, after the company’s extraordinary general meeting.

For its financial year ended Dec 31, 2015 (FY15), the company posted a net profit of RM2.64 million, from a net loss of RM2.99 million a year earlier, as revenue grew 23% to RM64.87 million, from RM52.61 million.

At the EGM earlier, ConnectCounty shareholders approved the group's proposed rights issue of up to 800.99 million new irredeemable convertible preference shares (ICPS) at 2.5 sen each, which will be issued on the basis of three ICPS for one existing share.

The rights issue comes with up to 53.4 million free warrants, on the basis of one warrant for every 15 ICPS.
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