KUALA LUMPUR (Oct 12): Here is a brief recap of some corporate announcements that made news on Thursday: Propel Global Bhd, SAM Engineering & Equipment (M) Bhd ,Wasco Bhd, HIL Industries Bhd, SSF Home Group Bhd, IJM Corp Bhd, OpenSys (M) Bhd, Capital A Bhd, KNM Group Bhd, Eversendai Corp Bhd and Kumpulan Kitacon Bhd.  

Propel Global Bhd is to purchase two parcels of land in Kuala Kuantan, Pahang for RM14.7 million to undertake a commercial development project with a gross development value of RM68 million. The construction firm said its wholly-owned subsidiary Propel Global Development Sdn Bhd has inked agreements with the vendor, Goldhill Deluxe Sdn Bhd, to purchase a 14,442 sq m parcel for RM13.95 million, and another 6,197 sq m parcel for RM750,266. On the land, Propel Global plans to develop 34 units of three-storey shoplots.

SAM Engineering & Equipment (M) Bhd plans to inject another RM200 million into its equipment business in Thailand in its current financial year ending March 31, 2024 (FY2024) and the following year. SAM said that as it continues to win more projects, it may require additional investment. According to its 2023 annual report, SAM’s capital expenditure in FY2023 stood at RM222.9 million, which it noted was “mainly for capacity expansion of its equipment business in Thailand”.

Wasco Bhd's (formerly known as Wah Seong Corporation Bhd) indirect wholly-owned subsidiary, Wasco AgroTech Sdn Bhd, has disposed of a piece of freehold land in Klang, Selangor for RM40 million. The group said it has entered into a sale and purchase agreement with Array Metal (M) Sdn Bhd for the proposed disposal on Thursday. Following the disposal, Wasco is expected to notch a one-off net gain of RM31.8 million.

HIL Industries Bhd has proposed to acquire a company that owns land near the Shah Alam-Klang border that has been earmarked for residential development, in a related party transaction. The moulded plastic products maker and property developer said it is acquiring Broadwise Corporation Sdn Bhd (BCSB) via its wholly owned subsidiary, Amverton Prop Sdn Bhd, for RM46 million. The vendors are Puan Sri Catherine Yeoh Eng Neo, Datuk Milton Norman Ng Kwee Leong and Konsep Kekal Sdn Bhd. Yeoh is the wife of HIL Industries executive chairman Tan Sri Ng Boon Thong, who is also a major shareholder of HIL Industries and BCSB, and Milton is his son.  

Newly listed SSF Home Group Bhd ended its maiden trading day at 26.5 sen on Thursday, up 1.5 sen or 6% from its initial public offering (IPO) price of 25 sen, making its market debut one of the most lacklustre IPOs this year. The furniture and home-living products retailer saw 148.35 million shares change hands, placing it as the third most active stock of the day on Bursa Malaysia. The volume traded is equivalent to 66% of the 224 million shares SSF Home offered under its listing exercise. The counter, which started the day at 25 sen, climbed 10% to a high of 27.5 sen, but soon pared gains to reach a low of 24.5 sen. At its closing price of 26.5 sen, SSF Home is valued at RM212 million.

IJM Corp Bhd announced on Thursday that its wholly-owned subsidiary IJM Construction Sdn Bhd has accepted a RM1.1 billion contract from Malaysia Rapid Transit System Sdn Bhd (MRTS) for the construction of an immigration, customs and quarantine complex (ICQC) for the Johor Bahru–Singapore Rapid Transit System (RTS) Link in Bukit Chagar, Johor Bahru. The construction group said IJM Construction has signed the letter of acceptance in respect of the proposed design, construction and completion of Packages 2A and 2B of the ICQC project, which is part of the Johor Bahru–Singapore RTS Link project. The award also includes a RM155 million provisional sum, according to IJM. 

OpenSys (M) Bhd has secured a RM105 million contract from Malayan Banking Bhd (Maybank) to process the bank’s outward cheque clearing for all branches nationwide. The solutions provider for the financial services industry accepted a letter of award from Maybank for the “outsourcing of outward cheque clearing at Maybank branches in Malaysia”.

Budget carrier AirAsia, a part of the Capital A Bhd group, is seeking a US$400 million (RM1.8 billion) loan, half of it from private credit funds, to refinance debt, according to people familiar with the matter. The loan will be in the form of a revenue bond, with investors to be paid out of ticket sales from ten AirAsia flight routes, the people said, declining to be identified because the matter is private. A representative of the company declined to comment. Capital A is no stranger to private credit. An engineering and maintenance subsidiary Asia Digital Engineering in April secured a US$100 million investment from private-credit provider OCP Asia Ltd, according to a statement at the time.

KNM Group Bhd and its indirect wholly-owned subsidiaries Deutsche KNM GMBH and Borsig GMBH have sued Flavio Porro and Terence Tan Koon Ping, after KNM called off the disposal of Borsig to Vorsprung Industries GMBH for €220.8 million (RM1.107 billion) in December 2022. KNM said the plaintiffs filed the writ action against the duo, who were former executive directors of the group, at the High Court on Wednesday. The plaintiffs are seeking for the defendants to pay €3.44 million, or any other sum determined by the court, within 14 days of the date of the order.

Eversendai Corp Bhd said it has submitted active tenders for more than RM15 billion worth of structural steel projects in Saudi Arabia which are highly complex, befitting Eversendai's technical capabilities. The company said the projects in the pipeline, when awarded, will contribute positively to the group. Eversendai said it has 27 years of presence in the Gulf and 24 years in Saudi Arabia, executing highly complex structures with connection design, engineering, fabrication and installation of high-profile projects using innovative erection methodology.

Founder of CJ Century Logistics Holdings Bhd (formerly known as Century Logistics Holdings Bhd) Datuk Phua Sin Mo has emerged as a substantial shareholder of Kumpulan Kitacon Bhd with a 14% stake. Phua acquired the stake, comprising 70 million shares, via a married deal — a pre-agreed transfer of shares — with Kumpulan Kitacon director Teow Choo Hing. A separate filing showed that Teow disposed of the shares at a mere 10 sen per share — an 84.96% discount to Thursday’s close of 66.5 sen. Based on back-of-the-envelope calculations, Phua forked out RM7 million for the 70 million share block.