Amcorp Properties Bhd expects its Hong Kong joint venture, which focuses on en-bloc buildings in good locations, to decide on the first acquisition there by the first quarter of 2018.

In its circular to shareholders yesterday, it said the JV, whose objective is to seek such property with value-added potential, expects the acquisition to be at HK$360mil (RM182mil).

As for its ongoing Sibujaya township development near Sibu airport in Sarawak, it would continue to develop the remaining land bank of over 622 acres over 10 years.

On its renewable energy division, Amcorp was adding further capacity with the upcoming commissioning of the 20MW hydro plant in Sungai Liang in 2018. This will increase its annual power generation to 120GWh per annum.

Commenting on its UK operations, Amcorp said its Burlington Gate and Holland Park Villas, both high end residential developments with a gross development value (GDV) of £270mil and £611mil respectively, have now been physically completed.

It said the units were in the midst of being delivered to buyers progressively since September 2017.

“The remaining premium units and penthouses for both projects with an estimated sales value of £198mil which are being released to the market will add to our results in the coming months,” it said.

In May 2016, Amcorp and its strategic international partners completed the acquisition of Bankside Yards in Southbank, London.

“This project with a GDV in excess of £1bil involves a comprehensive redevelopment scheme into a world class residential led mix development project with the existing planning permission being further refined for a total area close to 1.1 million sq ft,” it said.

As for its Kilmuir House, an apartment block in the heart of Belgravia, Amcorp said plans are to build a high end new built residential development.

“Both these projects located in prime central London are expected to see continued interest and demand from both local and foreign investors,” it said.

On its joint venture with Grosvenor in Spain, they had added four projects to its portfolio in Madrid. All these projects are planned for redevelopment into residential units and has a total estimated GDV of €145mil.

Amcorp said due to the improving market outlook and pipeline of deals, the group and its partner had on Jan 4 agreed to inject up to a further €15mil each to bring the equity of the fund to a total of up to €100mil.

Amcorp issued the details of the
projects and their progress in the circular to shareholders where it is seeking
a go-ahead to undertake a rights issue to raise gross proceeds of between
RM350mil and RM597.2mil. The EGM will be held on Feb 9.

As for the reference price of the redeemable convertible preference shares, it is expected to be about 80 sen.

Based on the minimum scenario of RM350mil, it said RM95.9mil would be used for existing property development projects and investments and RM14.1mil for future property development projects and working capital.

Based on the maximum scenario of RM597.2mil, it would use RM95.9mil for existing property development projects and investments and RM261.3mil for future property development projects and working capital.

Source: The Star

Source: NST

Permodalan Nasional Bhd (PNB) and the Employees Provident Fund (EPF) have entered into a heads of terms to buy the commercial assets currently being developed within phase two of the Battersea Power Station project in London for £1.6bil (RM8.8bil).

Good response: Construction cranes surround the Battersea Power Station office, retail and residential development in London. Over 90% of residential units under phase 2 has been pre-sold and the entire 470,000 sq ft of office space in the power station building has been let to Apple.

PNB and the EPF have entered into a heads of terms with Battersea Phase 2 Holding Company Ltd, a unit of Battersea Project Holding Company Ltd, in which SP Setia Bhd and Sime Darby Property Bhd own a 40% stake each.

The proposed transaction is to reorganise the ownership of the Battersea Power Station’s commercial property under PNB and the EPF, who are long term investors, while Sime Darby Property and SP Setia are principally property developers.

In a statement, SP Setia said the proposed transaction would augur well for the group’s business plans.

The company said the proposed transaction would enhance investment returns and allow it to capitalise on arising opportunities as a property developer, while continuing to play a significant role in the overall development of the project.

“It will also enable SP Setia to focus on securing the development’s profit and investment returns from the remaining development phases in the Battersea Power Station project.

“SP Setia remains committed to and is positive on the long-term prospects of the Battersea Power Station project,” it said.

Sime Darby and SP Setia said both PNB and the EPF had expressed their interest to explore the transaction following strong progress made under phase 2, as over 90% of residential units had been pre-sold and the entire 470,000 sq ft of office space in the power station building had been let to Apple.

In an outline of the heads of terms, SP Setia said the proposed transaction, once completed, would provide increased certainty of investment returns to SP Setia and Sime Darby Property as development partners, earlier than would otherwise be the case.

Additionally, the transaction shall enable both parties to focus on securing the development profit and investment returns from the three to seven remaining development phases of the project.

Source: The Star

Source: NST

Datasonic Group Bhd’s joint venture (JV) in Tanzania is expected to commence operations within the next nine months, as the supplier of electronic passport materials seeks to tap into the African market.

Datasonic chief operating officer Danny Chew said the company was finalising the JV details with its partner before commissioning the border control-related security project.

“We expect to commence our JV collaboration with our partner by this year. It will require about six to nine months from now before we can start commissioning our project there,” he told reporters on the sidelines of Invest Malaysia 2018.

Meanwhile, Chew said the company had formed a partnership with Perum Percetakan Negara Republik Indonesia to facilitate the migration of all payment cards to EMV (Europay, MasterCard and Visa) standards by 2021.

“The Indonesian government has spotted Datasonic as the ideal technology provider to assist them to go through the migration successfully.

“As of now, we estimate that there are over 100 million credit cards which are in circulation in Indonesia. These will be replaced in the first EMV migration,” he said.

He added that Datasonic would be focusing on its business expansion this year, both locally and in international markets.

Currently, Datasonic’s order book stands at nearly RM800mil, which provides an earnings visibility for the next three to five years.

“In the next few months, we are confident that we can secure additional contracts to our order book. As at Sept 30, 2017, our order book stood at RM1.3bil and we have recognised RM500mil worth of contracts since then,” he said, expecting the order book to surpass RM1.3bil by the end of the financial year ending March 30, 2018.

Source: The Star

Kuala Lumpur Kepong Bhd’s wholly-owned unit, Kolb Distribution AG, has incorporated a new wholly-owned company called KLK Chemicals Holding Netherlands B.V. in the Netherlands, with a total issued capital of 25 million euros (RM120.23 million).

It comprises 25,000 shares of 1,000 euros each and is currently non operational, it said in a filing to Bursa Malaysia today. The intended principal activity of KLK Chemicals Holding Netherlands B.V. is investment holdings.

Source: Bernama

Source: NST

Automotive parts and components manufacturer Ingress Group plans to invest up to RM60mil to build a manufacturing plant in Gujarat, India, its second plant in the republic, said group executive director Datuk Dr Ab Wahab Ismail.

He said the expansion was on the back of rising demand for parts and components in the country, with total industry volume expected to reach five million units this year.

“Ingress wants to introduce more new products to the industry (and) the new plant will (also) help increase our total production as a whole.

“It will have three production lines and higher capacity of between 60,000 and 80,000 car sets per month compared to the existing plant in New Delhi, which has only two production lines and 40,000 car sets per month,” he said.

He was speaking at a press conference after an official visit by Deputy International Trade and Industry Minister, Datuk Ahmad Maslan to Ingress Technologies Sdn Bhd’s (ITSB) plant in Bukit Beruntung yesterday.

ITSB, a wholly-owned subsidiary of Ingress Group, undertakes the manufacturing and supplying of complete door assembly units, as well as manufacturing of medium to high tonnage press parts.

ITSB is 70%-owned by Ingress Industrial (Malaysia) Sdn Bhd while Perusahaan Otomobil Kedua Sdn Bhd holds the remaining 30% stake.

The company is among many local companies that have benefited from various government initiatives to develop high value added industry such as the automotive industry.

Source: Bernama

Ranhill Holdings Bhd has started talks to expand its water treatment and electricity generation business overseas to boost growth, as earnings surged in the fourth quarter ended Dec 31.

Net profit rose 69% to RM22.45mil, the company said in a filing with Bursa Malaysia yesterday, despite a slight drop in revenue to RM372.5mil.

The improved performance boosted its
fullyear earnings to RM77.86mil, or 8.76 sen a share.

Ranhill said it would pay a second interim dividend of two sen a share today and has proposed a final payout to two sen a share to be approved by shareholders at its upcoming AGM.

“We foresee gradual growth in
electricity demand from the company’s current 2X 190MW plants,” it said,
commenting on its growth outlook for 2018.

“The company and its strategic partner are in the final phase of negotiation with regards to the 300MW combined cycle power plant in Sandakan, Sabah which will contribute additional revenue and profit to the group,” it added.

Ranhill, on Monday, announced that a subsidiary involved in the Sandakan project had received a conditional letter of award from the Energy Commission to develop the power plant.

Meanwhile, the company has “commenced negotiation for opportunities” in Thailand, Myanmar and Australia.

Ranhill said growth in the local environment segment is expected to be supported by the increasing demand for water in Johor.

In the international environment sector, Ranhill said its “strong partnership” with SIIC Environment Holdings Ltd of China had resulted in lower project loans interest with an average interest saving of approximately 1% per annum.

“The joint venture is now poised to commence exploring new opportunities for industrial waste water concession contracts and other potential water related works in China and South-East Asia under the Belt and Road Initiative,” it said.

Source: The Star

Industrial equipment manufacturer Genetec Technology Bhd is partnering with several parties to collaborate on the development of an ammonia and urea manufacturing plant in India.

In a filing with Bursa Malaysia this evening, Genetec said it has signed a Memorandum of Understanding (MoU) with the Malay Chamber of Commerce Malaysia (MCCM), China Rainbow International Investment Co Ltd (CRIIC) and India-based VBC Fertilisers & Chemicals Ltd (VBC) for the proposed development.

The MoU, said Genetec, provides the opportunity for it to provide its system automation solutions and services within the project scope.

Save for MCCM, the three companies will also form a consortium to facilitate the project development, said Genetec.

“The equity allocation among Genetec, CRIIC and VBC in relation to equity structure of the consortium is to be negotiated and mutually agreed and to be set out in definitive agreements,” it said.

Under the MoU, Genetec is tasked to facilitate CRIIC’s participation in the project. CRIIC will in turn nominate the engineering, procurement, construction and commissioning (EPCC) contractor, and to provide funding totalling 30% of the project development cost.

On the other hand, MCCM will assist the consortium coordinating with the Malaysian government relating to the project. Similarly, VBC is to assist the consortium on approvals, permits, licences, land and other matters in the project site in Andhra Pradesh, India.

Shares of Genetec rose 3 sen or 2.34% to RM1.31, giving the group a market capitalisation of RM46.49 million.

Source: The Edge Markets

Source: NST

Source: NST

Source: NST

Source: NST

Source: Bernama

Source: NST

Source: NST

Serba Dinamik Holdings Bhd has signed a shareholders’ agreement with Junaco (T) Ltd, firming up a joint venture (JV) to build a chlor-alkali plant in Tanzania.

The group’s wholly-owned unit Serba Dinamik International Ltd (SDIL) had entered into the agreement to form astrategic collaboration and to govern  the material aspects of the proposed JV, the conduct of the business and the management of the JV company Sufini Holding Ltd.

The JV company, which had been incorporated on Feb 20, 2018 in the Abu Dhabi Global Market, is a special purpose vehicle that will hold a 100% stake in Msufini (T) Ltd, the direct owner of the plant, Serba Dinamik added in a filing with Bursa Malaysia today.

SDIL will hold a 25% stake in Sufini, it said, while Junaco will own the remainder.

Last October, Serba Dinamik had via SDIL inked a JV agreement with Tanzanian water-related solution supplier Junaco to develop the chlorine skid mounted chlor-alkali plant, which has a capacity
of 45 tonnes per day.

The JV will see SDIL being involved in the engineering, procurement, construction and commissioning works which are valued at approximately RM295.26 million and marks the group’s entry into the African continent.

Shares in Serba Dinamik traded down 3 sen or 0.9% at RM3.32 this afternoon, giving the group a market capitalisation of RM4.88 billion.

Source: The Edge Markets

Source: NST

Sumatec Resources Bhd has been granted an award from Markmore Energy (Labuan) Ltd worth US$120mil (RM480mil) to construct a condensate extractions plant (CEP) for the Rakushechnoye oil and gas (O&G) field in Kazakhstan.

In a filing with Bursa Malaysia yesterday, the O&G firm said intended to fund the construction of the plant, scheduled to be completed within 18 months of the signing of the gas supply agreement, via an equity fundraising exercise and bank borrowings.

Markmore Energy is the ultimate holding company of the entire participatory interest in CaspiOilGas LLP (COG), the concession owner and operator of the O&G field that supplies 80 million standard cubic feet per day of natural gas.

Sumatec will pay Markmore Energy US$155mil (RM600mil) as entry cost in the form of cash, US$100mil (RM380mil) in new Sumatec shares and redeemable convertible preference shares worth US$25mil (RM97mil).

“The Rakushechnoye O&G field is located in Karakiyansky region of the Mangistau Oblast. The nearest township is Kuryk and is located 40km to the north, the capital city of Aktau of the Mangistau Oblast is 105 kilometres to the north,” said Sumatec.

It said field produces light crude oil with density of around 0.8 grams per cu cm or American Petroleum Institute gravity ranging between 45.4 to 47.6.

Markmore Energy belongs to Tan Sri Halim Saad, the major stakeholder in Sumatec, while Abu Talib Abdul Rahman is both managing director of Sumatec and director of Markmore.

In January, Sumatec and COG inked a pre-sale gas agreement to sell gas to NIPIneftegas Consortium in Kazakhstan over 15 years.

The deal will see the NIPI-led consortium converting the feed gas into petroleum products through a proprietary gas to liquid (GTL) technology.

The proposed capital expenditure for the gas utilisation plan, which is tied to the gas development production agreement between Sumatec and COG, will start at US$60mil (RM234mil).

Source: The Star

Dagang NeXchange Bhd (DNeX) will work with the Department of Education Region V and Naga City of the Philippines to jointly develop a halal park there.

DNeX, through its wholly-owned subsidiary Global Market eCommerce Sdn Bhd, had recently signed two Memoranda of Understanding (MoUs) with the two parties to jointly develop the halal park.

Under the MoUs, DNeX is given the exclusive right to undertake several initiatives for the halal park including research and development and certification of product and services within the park.

The initiatives also include establishing and managing the halal logistics within the park, providing halal-related training, and marketing internationally all certified halal products within the park.

DNeX has also agreed to establish a halal certification body for the park.

DNeX executive deputy chairman Datuk Samsul Husin said the opportunity in the halal industry is vast with Muslims accounting for about a quarter of the world’s more than 7 billion population.

“This opportunity can only grow as the concept of Halal takes on a stronger foothold,” he added in a statement today.

He noted that a segment of the halal industry that is increasingly gaining attention and where DNeX has a strong interest is halal logistics, which can be defined as ensuring halal integrity in the flow of products and goods throughout the supply chain.

DNeX currently operates GoHalal eMarketplace for the halal industry, where companies or individuals can get suppliers or buyers for their products and services as well as obtain and exchange information on the industry within clicks.

DNeX shares closed lower 0.5 sen or 1.21% at 41 sen, with 3.91 million shares traded, giving it a market capitalisation of RM738.1 million.

Source: The Edge Markets

The country’s biggest feltmaker, Oceancash Pacific Bhd, is said to be considering a plan to relocate part of its production capacity to Thailand, the group’s fastest-growing market.

As it is, exports make up 60% of the company’s felt sales, with Thailand contributing a third of this amount.

“Oceancash is looking to reallocate one of its Malaysian production lines to Thailand to tap into the strong demand for resinated felts,” Affin Hwang Investment Bank told its clients last Friday.

“The new production line in Thailand is to be up and running by end-2018, and margin improvements are to only be felt in financial year 2019 (FY19),” it said in a report following a meeting with the management of Oceancash.

Analysts, including those at CIMB Research, have made a beeline for Oceancash ahead of the company’s proposed transfer of listing from the Ace Market on Bursa Malaysia to the Main Market by end-June.

In a recent report, CIMB projected that earnings at Oceancash would grow by 17% this year, boosted by its overseas operations.

Net profit at Oceancash had dipped slightly to RM9.8mil, or 4.4 sen a share, in FY17 ended Dec 31 from RM10.1mil, or 4.57 sen a share, a year earlier.

The lower profit was attributed to a non-recurring repair work at its production facility, as well as a RM200,000 expense to graduate to the Main Market.

At its closing price of 44.5 sen last Friday, shares in Oceancash had halved in value from where they were a year ago.

CIMB Research has a target price of 76 sen for the stock, while Affin Hwang has valued the company at 78 sen a share.

“We believe that the decline in the share price since mid-2017 provides investors with a good buying opportunity in view of Oceancash’s positive growth prospects in both the insulation and hygiene segments,” Affin Hwang said.

Both firms expect growth in FY18 to be driven by higher sales overseas.

“We understand that Oceancash is one of the few players around to have production lines that can cater to both resinated and non-resinated felt,” it said.

Felt products produced by Oceancash are mainly used as insulation in cars and various hygiene applications such as baby diapers and sanitary pads.

In Thailand, the group is said to be targeting to boost sales to both car manufacturers, as well as the hygiene applications sector.

“While local felt sales may not excite due to tempered growth in automotive sales, we see that growth in the insulation segment will be driven by increasing contributions from Thailand and Indonesia,” Affin Hwang said.

The firm has a “buy” call on Oceancash, with a target price of 78 sen. This values the stock at about 15 times its projected earnings for its FY18.

Affin Hwang said it has assumed higher sales but lower margins for the felt business in Indonesia. “We understand that Oceancash will be more aggressive in competing for felt sales in Indonesia by shifting focus to the cheaper non-resinated felt, which has lower margins compared to resinated felt,” it said.

The move, it said, would help the company achieve higher sales for its unit in Indonesia.

“We forecast stronger growth due to higher utilisation rates expected, moving forward, in tandem with higher contributions from the Thailand and Indonesian segment,” it said.

Source: The Star

Oil and gas (O&G) solutions provider Serba Dinamik Holdings Bhd is pursuing strategic acquisitions of O&G technology companies in the US, Australia and European countries as part of its overseas expansion plans.

Group chief executive officer Datuk Dr Mohd Abdul Karim Abdullah said active discussions were ongoing and the group hoped that by the third week of April some significant deals could be closed.

“We will announce it accordingly to our shareholders. They (the companies Serba Dinamik looks to acquire) have the capabilities and technology that can be applied to other sectors such as power generation and water utilities,” he told Bernama at the recent Offshore Technology Conference Asia 2018 here.

Abdul Karim, who is also group managing director, said the group planned to increase the revenue contribution of its water utilities and power generation segments to 35% from the current 20% over the next three year as part of its expansion into new markets.

Serba Dinamik is currently operating in South-East Asia, Central Asia, the Middle East, Europe and Africa.

The group recorded an increase in its net profit for the financial year ended Dec 31, 2017 to RM306.51mil from RM151.44mil a year earlier, while revenue for the year rose to RM2.71bil from RM1.41bil year-on-year. The Middle East continued to be the highest revenue contributor on a regional basis with 59.2% of revenue in 2017. The group’s current order book stands at RM6.6bil, with 65% attributed to the O&G segment.

In February this year, Serba Dinamik proposed to acquire stakes in three renewable energy companies in Perak from Maju Holdings Sdn Bhd for RM24.85mil.

Its wholly-owned subsidiary Serba Dinamik Group Bhd entered into a memorandum of agreement with Maju Holdings for the acquisition of 40% stakes held by Maju in Maju Renewable Energy Sdn Bhd, Maju RE (Talang) Sdn Bhd and Maju RE (Temenggor) Sdn Bhd.

“Moving forward, we are making a commitment that by 2018, we are looking to have a 200MW power plant under the umbrella of the Serba Dinamik Group,” Abdul Karim added.

Source: Bernama

Source: NST

Petroliam Nasional Bhd (Petronas) is set to become the second-largest partner in LNG Canada after striking a deal to buy 25% in the liquefied natural gas (LNG) project in Kitimat, British Columbia, Canada.

This is an about-turn of event for the national oil and gas company, which in July 2017 scrapped plans to invest in the C$36bil (RM111.5bil) Pacific NorthWest LNG gas pipeline project in British Columbia, Canada, due to prolonged depressed prices and unfavourable market conditions for the energy industry then.

Petronas’ announcement yesterday that its wholly-owned entity, the North Montney LNG Ltd Partnership (NMLLP), had entered into a sales and purchase agreement for an equity position in the LNG Canada project came amid improving energy prices and an increasingly healthier market outlook for the oil and gas sector.

“It is anticipated that the transaction will achieve completion in the next few months,” Petronas said in a statement.

It noted that the transaction remained subject to international regulatory approvals and the completion of other associated agreements.

The LNG Canada project, which reportedly costs of up to C$40bil (RM123.9bil) for the construction of an export terminal and related infrastructure, is led by Royal Dutch Shell plc (Shell) as the largest partner.

Petronas said that upon completion of the deal, it would be the second-largest partner in LNG Canada project with a 25% stake through NMLLP after Shell.

Shell, through its subsidiary Shell Canada Energy, would have a 40% stake in the project.

Other stakeholders – PetroChina Canada Ltd; Diamond LNG Canada Ltd, a subsidiary of Mitsubishi Corp; and Kogas Canada LNG Ltd would each have a 15% stake in the project.

Petronas president and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin said the group, in seeking to build a longterm presence in Canada, would continue to explore other opportunities in the country.

“Petronas is in Canada for the long term and we are exploring a number of opportunities that will allow us to increase our production and accelerate the monetisation of our world-class resources in North Montney. LNG is just one of those opportunities,” he said.

On Petronas’ proposed investment in the LNG Canada project, Wan Zulkiflee said: “As one of the world’s largest LNG producers, Petronas looks forward to adding value to this venture through our long-term expertise and experience across the LNG value chain.

“We are committed to deliver LNG and natural gas, the cleanest fossil fuel in the world, to the growing global energy market.”

Petronas pointed out that the proposed LNG Canada project would include the design, construction and operation of a gas liquefaction plant and facilities for the storage and export of LNG, including marine facilities.

The plant would initially consist of two world-scale LNG processing units referred to as “trains”, with an option to expand the project in the future to four trains.

Petronas said having an equity position in the project would enhance its business intent to develop its world-class natural gas resources in the North Montney, northeast British Columbia, through its wholly-owned subsidiary, Progress Energy Canada Ltd.

A report by Bloomberg noted that after Petronas cancelled its plan to invest in the Pacific NorthWest LNG project last July, the group was left without a plan to export gas produced by Progress Energy Canada unit to Asia as originally intended. Buying into the LNG Canada project would therefore help revive that prospect.

Canada is Petronas’ second-largest resource holder after Malaysia, with vast unconventional gas and oil resources in the North Montney.

Petronas and its North Montney joint-venture partners are one of the largest natural gas resource owners in Canada with over 52 trillion cu ft of reserves and contingent resources.

According to Bloomberg, LNG Canada plans to build an export facility at Kitimat near Prince Rupert – North America’s closest port to Asia – that could eventually reach 26 million tonnes a year in capacity.

The newswire noted that Petronas’ involvement would help bring financing and gas supplies to LNG Canada, as the group nears a final investment decision, expected this year.

Quoting National Bank of Canada analyst Greg Colman, Bloomberg said Petronas’ Progress unit could contribute an additional 560 million cu ft a day of production to the project. This would ensure that the project would have all the gas it needs to meet its initial export target.

Shell and its partners have twice delayed a final investment decision on the LNG Canada project amid a global supply glut. But in recent months, Shell has indicated the window for competitive projects may be reopening, saying that global LNG demand exceeded expectations last year and that the market may again face a supply shortage by mid2020s.

“It is looking very, very positive for this project,” Karl Johannson, head of Canada and Mexico natural gas pipelines for TransCanada Corp, which is set to build the pipeline to deliver gas to the export facility, said on an investor call in April.

Wood Mackenzie senior analyst Prasanth Kakaraparthi said the development marked “an interesting turn of events.”

With nearly 52 trillion cu ft of reserves and contingent resources, Canada is the second largest resource holder in Petronas’ portfolio after Malaysia. Consequently, monetisation through LNG is inevitable given the weak outlook for domestic prices, Prasanth said in a statement sent to StarBiz.

However, he said costs would be a major concern for the project.

“Shell has announced its intent to make a decision by the end of this year. But before LNG Canada can take FID (final investment decision), it will need to lower costs and take advantage of the latest tax breaks announced by the British Columbia government,” he added.

Prasanth noted that Petronas has signalled its intent to become a portfolio player and has taken steps to diversify its supply sources.

Once both phases are executed, LNG Canada could add up to 7 tonnes of equity LNG into the national oil corporation portfolio – nearly 20% of its 2023 supply.

“In the event, we believe this to be a positive development for Petronas. We expect the global LNG market to tighten post-2022 and this bodes well for the project. But activity has returned to the LNG space with a number of projects expecting to take FID ahead of 2019.

“A new wave of project sanctions and rising oil prices could push up project costs and dampen the economics,” he said.

Source: The Star