KUALA LUMPUR (Dec 5): Here is a brief recap of some corporate announcements that made the news on Monday: UMW Holdings Bhd, Opcom Holdings Bhd, Cypark Resources Bhd, HB Global Ltd, Sarawak Consolidated Industries Bhd, Lambo Group Bhd, UMediC Group Bhd, Bioalpha Holdings Bhd, Kanger International Bhd, EITA Resources Bhd, UEM Edgenta Bhd, Malakoff Corp Bhd.

UMW Holdings Bhd has proposed to dispose of a 22.22-acre industrial leasehold land within the UMW High Value Manufacturing Park in Serendah, Selangor to Perusahaan Otomobil Kedua Sdn Bhd (Perodua) in a related party transaction. UMW said its wholly-owned subsidiary UMW Development Sdn Bhd is selling the land to Perodua's wholly-owned unit Perodua Sales Sdn Bhd for RM52.27 million, cash. UMW owns a 38% stake in Perodua via another wholly-owned subsidiary, UMW Automotive Sdn Bhd. UMW said the proceeds from the sale of land will be used for working capital purposes. The group is expected to record a gain of RM6 million from the disposal.

Opcom Holdings Bhd has proposed to change its corporate name to Hextar Capital Bhd effective immediately. Notably, Hextar’s Group CEO Datuk Eddie Ong Choo Meng is its largest shareholder with a 31.74% direct stake in the fibre optic company. Broadband infrastructure provider Opcom came under the spotlight recently after it acquired a 18.03% stake or 70 million shares in ACE Market-listed Binasat Communications Bhd in September from Binasat Communications managing director Na Boon Aik for RM39.2 million as part of its venture into the satellite telecommunications business.

Cypark Resources Bhd has inked a memorandum of understanding (MOU) with Abu Dhabi Future Energy Company PJSC (Masdar) to explore various renewable energy-related projects in Malaysia. According to the group, Masdar is an investment vehicle of the government of Abu Dhabi, owned by Mubadala Investment Company PJSC, Abu Dhabi National Oil Company (Adnoc) and Abu Dhabi National Energy Company PJSC (Taqa), with a mandate to generate sustainable economic benefits for the United Arab Emirates. Cypark added that the MOU comes into effect on the date of execution, and will remain in effect for a period of two years. The MOU may be extended for a further period as may be agreed in writing by the parties.

HB Global Ltd’s proposed acquisition of frozen meat and poultry products trader KK Fresh Frozen Sdn Bhd for RM30 million has collapsed, as the specified conditions precedent within the conditional period were not fulfilled. HB Global, a company engaged in the trading of frozen meat and poultry products, announced on Monday the automatic termination of the share sales agreement related to the proposed acquisition, citing non-fulfilment of the conditions precedent within the conditional period. Additionally, HB Global said it received notification from the vendor, KK Fresh’s managing director Tan Hwa Sin, indicating no intention to extend the conditional period.

Sarawak Consolidated Industries Bhd (SCIB) has secured a sub-contract worth an estimated RM16.8 million in a construction project for the Sarawak police air operation force. SCIB said its wholly-owned subsidiary SCIB Industrialised Building System Sdn Bhd was awarded the job, involving the supply of precast components for the apron and taxiway of an air base, by S&I Urban Designers Sdn Bhd. SCIB said the contract is expected to contribute positively to its future earnings, as any profit attributable to the group would be realised in stages during the tenure and progress of the contract.

Morgan Stanley & Co International plc has ceased to be a substantial shareholder in information technology service provider Lambo Group Bhd. This comes after Morgan Stanley sold off its entire shareholding of 188.82 million shares, or a 12.26% stake, in the Guidance Note 3 (GN3) company on Nov 30. It is worth noting that Morgan Stanley had only recently acquired those entire shares on Nov 27.

UMediC Group Bhd’s (UMC) net profit fell 5.6% year-on-year in the first quarter ending Oct 31, 2023 (1QFY2024), despite higher revenue, dragged by higher tax expense and a rise in expenses. The medical devices manufacturer’s net profit fell to RM1.88 million or 0.51 sen per share, from RM2 million or 0.54 sen per share a year ago. While quarterly revenue rose 28.37% to RM14.52 million, from RM11.31 million in the previous corresponding quarter, gross profit only rose by 21.77% to RM4.66 million from RM3.83 million. This was as the cost of sales rose 31.75% to RM9.86 million, from RM7.48 million, on higher marketing, administrative and other expenses. Meanwhile, taxation doubled to RM531,000, from RM247,000 a year ago.

Bioalpha Holdings Bhd said that its wholly-owned subsidiary has been appointed by the Langkawi Development Authority (Lada) to develop and operate a 7.98-acre agro park in Bandar Padang Mat Sirat, Langkawi. As the owner of the land, Lada — an agency under the Ministry of Finance tasked to propel the tourism economy of Langkawi — is granting Bioalpha Wellness rights of land use for 30 years, said Bioalpha. Bioalpha Wellness, meanwhile, will provide Lada with a yearly fixed fee and quit rent and assessment. The company will also provide an estimated investment of at least RM15 million to be funded by internally generated funds and bank borrowings.

Kanger International Bhd’s largest shareholder and executive director Kuah Choon Ching has disposed of his entire 12.28% stake in the company. Kuah offloaded the stake comprising 74.05 million shares via the open market on Nov 30, thereby ceasing to be a substantial shareholder in the construction outfit. Based on the price tag of seven sen per share stated in the filing, the executive director disposed of the block of shares for RM5.18 million.

EITA Resources Bhd said its subsidiary has secured a contract from Tenaga Nasional Bhd (TNB) to rehabilitate a main intake substation in Kedah for RM56.31 million. EITA said its 60%-owned TransSystem Continental Sdn Bhd (TSC) received a letter of acceptance from TNB for the "rehabilitation of PMU 132/11kV Gurun (Rehab), Kedah”. EITA noted the contract shall be effective from end-November 2023 and span two years (730 days).

UEM Edgenta Bhd’s indirect wholly-owned subsidiary Edgenta International Investments LLC (EII) has entered into a sale and purchase agreement and shareholders’ agreement with United Arab Emirates (UAE)-based NW Kaizen Holding Ltd to acquire 60% equity interest in Kaizen Owner Association Management Services LLC (KOA) and Kaizen AMS Property Supervision LLC. UEM Edgenta said the acquisition would be for AED43.2 million (RM55.1 million) in cash. It added that the sale and purchase agreement would be completed on the second business day after EII receives the amended commercial licences of Kaizen Group to reflect the transfer of the sale shares or such other time the parties may agree.

Malakoff Corp Bhd has teamed up with Abu Dhabi Future Energy Company PJSC (Masdar) to identify potential business opportunities through investment and development of solar photovoltaic power plant project development, with a targeted aggregate capacity of up to 1,000MW, and explore other renewable energy (RE) projects opportunities in Peninsular Malaysia. Malakoff said the collaboration will involve conducting technical and commercial assessments of specific projects that have been identified, and collaborating on the development, implementation and management of the projects, including the financing arrangements in accordance with the RE transition.