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KUALA LUMPUR (May 8): Here is a brief recap of some corporate announcements that made the news on Monday (May 8), involving Hartalega Holdings Bhd, Barakah Offshore Petroleum Bhd, Pos Malaysia Bhd, Sapura Energy Bhd, Cypark Resources Bhd, Seal Incorporated Bhd, ECM Libra Group Bhd, Focus Dynamics Group Bhd, Saudee Group Bhd and Mi Technovation Bhd
Hartalega Holdings Bhd is decommissioning its Bestari Jaya production facility, taking off four production plants with 40 production lines from its capacity by year end. The decommissioning exercise, which the glove maker described as a “difficult yet necessary” decision to weather the current tough market landscape, is expected to give rise to an impairment loss of RM347 million for the financial year ended March 31, 2023 (FY2023). A further provision for retrenchment costs and contract obligation expenses amounting to about RM70 million is expected for FY2024.
Barakah Offshore Petroleum Bhd has decided to discontinue its legal action against Petroliam Nasional Bhd (Petronas) for suspending its unit’s licence to bid for new projects from the national oil company in 2019. It also dropped the legal action against former Petronas president-cum-chief executive officer (CEO) Tan Sri Wan Zulkiflee Wan Arifin, current president and group CEO Datuk Tengku Muhammad Taufik Tengku Aziz, and six defendants including Petronas chief financial officer Liza Mustapha. Other defendants included Shamsudin Miskon, Nasrin Amir, Noor Mohamad Taj, Freida Amat and Shaliza Abdul Malik. Meanwhile, it said the financial impact from the withdrawal or discontinuance of the civil suit is confined only to legal costs.
Loss-making courier outfit Pos Malaysia Bhd has opened its first convenience store Pos Shop along Jalan Tuanku Abdul Rahman here, as part of its strategic transformation journey. The new venture came as the courier service provider continued to explore avenues to reverse half a decade of losses, following declining mail volume and stiff competition in the parcel delivery market.
The Sessions Court (civil) has granted Sapura Energy Bhd an interim stay in relation to the revelation of its former CEO and co-founder Tan Sri Shahril Shamsudin’s remuneration and incentives. With the interim stay, Sapura Energy is not required to disclose the details of Shahril’s remuneration package for the time being.
Two independent and non-executive directors of Cypark Resources Bhd have stepped down from their positions as their tenures had exceeded the nine-year term limit, to be in line with Practice 5.3 of the Malaysia Code on corporate governance. The duo are Datuk Abdul Malek Abdul Aziz and Datuk Dr Freezailah Che Yeom. Their resignations took effect last Friday (May 5). Abdul Malek, 85 years old, was appointed to the Cypark board in 2012, while the 83-year-old Freezailah joined in 2010.
Aaron Chen Khai Voon is subscribing to a 20% stake in Seal Incorporated Bhd via a RM16.2 million placement exercise, paving the way for the low-profile businessman to be the largest shareholder in the property developer. Seal will be placing out 62.29 million shares to Chen at an issue price of 26 sen per share. Proceeds raised from the placement will mainly be utilised by Seal for the acquisition of a new viable business, while the proposed placement provides an opportunity to rope in Chen as a strategic investor, who is widely known for his ventures into PapaRich restaurant chain and Genetec Technology Bhd — an automated industrial systems and equipment maker for sectors like electric vehicle energy storage, consumer goods and healthcare
ECM Libra Group Bhd’s 30%-owned associate Positive Carry Sdn Bhd is to exit TYK Capital Sdn Bhd by selling its entire equity interest of 27% in the company to Singapore-based private equity (PE) firm PrimeMovers Equity (S) Pte Ltd for RM120 million cash. This came after Positive Carry inked a conditional sale and purchase agreement (SPA) with Enzo II Holdings Pte Ltd — PrimeMovers’ special purpose vehicle — to dispose of its entire 24 million shares in TYK Capital. Based on back-of-envelope calculations, PrimeMovers is purchasing the TYK Capital shares at RM5 apiece. The remaining 70% equity interest in Positive Carry is held by Plato Capital Ltd, a substantial shareholder of ECM Libra.
Focus Dynamics Group Bhd’s executive director Benson Tay Ben Seng has ceased to be a substantial shareholder in Saudee Group Bhd, after offloading 33.09 million shares or 2.81% stake in the company at three sen per share. With the disposal, Tay is left with 32 million shares or a 2.9% stake in the company. Tay emerged as a substantial shareholder in Saudee in November last year, after he subscribed to 100 million shares in the company via an option exercise under a share issuance scheme.
Mi Technovation Bhd warned that this year will be a challenging one for the group as the outlook for the semiconductor market remains soft, after its net profit for the first quarter ended March 31, 2022 (1QFY2023) fell 50.16% to RM6.4 million from RM12.83 million a year earlier. “The inventory level remains high and may take a longer period to digest, hence causing further deferment of expansion plans and uncertainty in capex spending, as well as capacity ramp-up schedule in the market,” it said. Nonetheless, the Penang-based semiconductor equipment manufacturer said if short-term global economic headwinds improve, the robust growth momentum of the semiconductor industry will return. Its lower net profit for 1QFY2023 was due to lower contributions from its semiconductor equipment business and its semiconductor material business. Revenue for the quarter shrank 13.74% to RM76.85 million, from RM89.09 million previously.
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