KUALA LUMPUR (Oct 27): Here is a brief recap of some corporate announcements that made news on Friday: Cengild Medical Bhd, YNH Property Bhd, Hextar Global Bhd, Meta Bright Group Bhd, Malakoff Corp Bhd, Axis Real Estate Investment Trust (Axis REIT), Seremban Engineering Bhd (SEB), Luxchem Corp Bhd, Khee San Bhd, Southern Steel Bhd.

Cengild Medical Bhd said the information technology (IT) system used by its wholly-owned subsidiary Cengild Sdn Bhd was affected by a data breach that may have leaked patient data. The group said there was no impact on the provision of medical services and no disruption to patient care. Cengild Medical said its subsidiary will continue to closely monitor the situation, while conducting further assessments of the IT framework and security systems.

YNH Property Bhd’s external auditor has issued a qualified opinion on the group’s financial statements for the 18-month period ended June 30, 2023, in relation to its joint venture (JV) and turnkey contracts for property development work. Baker Tilly Monteiro Heng PLT expressed a “basis for qualified opinion” saying that an amount of RM1.1 billion had been included in YNH’s inventories regarding the contracts entered into with the JV parties or landowners.

Hextar Global Bhd said it is acquiring the entire equity interest in Propel Chemicals Sdn Bhd (PCSB) for RM16.5 million cash to further expand its oil and gas (O&G) specialty chemicals portfolio. The agrochemical company said its subsidiary Hextar Kimia Sdn Bhd is buying PCSB from Propel Global Bhd (with a 55% stake), Rancak Nikmat Sdn Bhd (36.9%), and Wiramas Baiduri Sdn Bhd (8.1%). The proposed acquisition, which is expected to be completed in the fourth quarter of 2023, will be funded through internally generated funds.

Meta Bright Group Bhd has proposed to diversify into the building materials trade through the acquisition of a 70% stake in a ready-mixed concrete manufacturing business in Sabah for RM28.04 million. The purchase of the stake in Expogaya Sdn Bhd (Expo) will be settled via a cash consideration of RM5 million and the issuance of 98 million new shares in Meta Bright at 23.4 sen each. The Expo group of companies is primarily involved in the manufacturing, trading and supplying of ready-mixed concrete with Expo’s 16 batching facilities strategically located near major hubs of construction activity in Sabah.

Malakoff Corp Bhd has proposed to acquire a 49% stake in a solid waste management company, E-Idaman Sdn Bhd, for RM133.2 million cash. Malakoff said E-Idaman's wholly-owned subsidiary, Environment Idaman Sdn Bhd, provides waste collection and disposal services for municipal waste under a 22-year concession granted by the federal government for the provision of solid waste collection and public cleansing management services for Kedah and Perlis.

Axis Real Estate Investment Trust's (Axis REIT) net property income (NPI) for the third quarter ended Sept 30, 2023 increased marginally by 0.67% to RM61.9 million compared with RM61.49 million, on the back of higher property income. Quarterly revenue edged slightly higher by 0.14% higher to RM71.81 million from RM71.71 million. Axis REIT declared a third interim income distribution of 2.15 sen per unit, payable on Dec 15.

Seremban Engineering Bhd (SEB) has secured a RM161.83 million contract for the construction of two apartment blocks near Genting Highlands. The group said it has been appointed by IBN Highland Sdn Bhd to undertake the main building architectural works, mechanical and electrical works, and associated external works, for the two blocks of 29-storey apartments at Highland City, Genting Permai in Bentong, Pahang. The engineering services group informed Bursa Malaysia that the 12-month contract commenced on Friday.

Kossan Holdings (M) Sdn Bhd, the largest shareholder of Kossan Rubber Industries Bhd, has emerged as the substantial shareholder in Luxchem Corp Bhd, after acquiring 6.09 million shares, or a 0.569% stake. Kossan Holdings bought the block of shares via direct business transaction on Wednesday. Based on the back-of-the envelope calculation, the cost of this purchase was RM2.86 million, based on Luxchem’s closing price of 47 sen at the time. This raised Kossan’s shareholding in Luxchem to 5.168% or 55.29 million shares. Prior to the transaction, Kossan Holdings held a 4.599% stake or 49.2 million shares in the group.

Practice Note 17 (PN17) company Khee San Bhd has reported that its auditor has expressed doubts about the ability of the loss-making candy and sweets manufacturer to continue its operations as a going concern in its audited financial statements for the financial year ended June 30, 2023 (FY2023). Khee San revealed that its external auditor, Messrs Kreston John & Gan, noted that Khee San incurred net losses of RM204.81 million at the group level and RM113.67 million at the company level during FY2023. Furthermore, current liabilities exceed current assets by RM128.49 million at the group level and RM4.98 million at the company level.

Southern Steel Bhd said that it is not aware of any agreement that its major shareholder Hong Leong Group — a conglomerate helmed by billionaire Tan Sri Quek Leng Chan — had entered into that would need to be disclosed to Bursa Malaysia. Hong Leong Manufacturing Group Sdn Bhd and HLMG Capital Sdn Bhd — both controlled by Quek — are the top two major shareholders of Southern Steel, collectively holding a 69.97% stake in the company, according to its annual report. The company said this in a Friday bourse filing while responding to a query by Bursa Malaysia in relation to a report on Wednesday about the group's plan to divest its majority stake in the steel products manufacturer. It is seeking a valuation of as much as US$200 million (RM957.2 million) for the unit.