KUALA LUMPUR (April 17): Here is a brief recap of some corporate announcements that made the news on Monday (April 17), involving Salutica Bhd, Sime Darby Bhd, Salcon Bhd, TAFI Industries Bhd, Jiankun International Bhd, Malayan Flour Mills Bhd (MFM), MN Holdings Bhd, Seni Jaya Corp Bhd, Pentamaster Corp Bhd, CTOS Digital Bhd, Boustead Holdings Bhd (BHB), Bina Puri Holdings Bhd, Pertama Digital Bhd, Axiata Group Bhd and OSK Ventures International Bhd.

Salutica Bhd, which was slapped with an unusual market activity (UMA) query, highlighted its legal dispute with Apple Malaysia Sdn Bhd as a possible cause for the recent jump in its share price and volume. The Ipoh-based electronic manufacturer was referring to the April 3 announcement, saying its wholly owned subsidiary Salutica Allied Solutions Sdn Bhd has filed a writ of summons and statement of claim against Apple Malaysia at the High Court. Salutica started the legal action against Apple Malaysia in 2022, claiming the latter used a wireless pairing process that is similar to the content of Salutica’s patent. The group alleges that the pairing method used by Apple infringes upon its patent, which it applied for in 2012. Shares of Salutica — which earlier opened at RM1.14 — jumped 29.36% or 32 sen to close at an intraday high of RM1.41 on Monday. This is the group’s highest share price recorded since December 2017. 

Sime Darby Bhd’s automotive arm Sime Darby Motors has entered the Indonesian automotive market via PT Performance Motors Indonesia — a joint venture between its subsidiary Sime Singapore Ltd and Galeon Group. The company said PT Performance Motors Indonesia gives Sime Darby an immediate presence in Jakarta and Medan, via two dealerships representing BMW and MINI. The firm said it will also serve as a springboard for the joint venture’s expansion into other provinces in Java and Sumatra with the BMW Group seeking to grow their network in Indonesia.

Salcon Bhd’s unit has secured a contract to build a small hydropower plant of 10.44MW at the Sungai Selangor Dam, worth RM65 million. The company said its wholly owned subsidiary Salcon Engineering Bhd has accepted the letter of award from AIS Small Hydro Sdn Bhd for the engineering, procurement, construction and commissioning (EPCC) of the power plant. AIS Small Hydro is a special purpose vehicle (SPV) company formed by Air Selangor Holdings Bhd and Worldwide Holdings Bhd. The contract is scheduled for completion by May 3, 2025.

TAFI Industries Bhd, via its wholly owned TAFI Home & Office Sdn Bhd (THOSB), has been awarded a RM9.66 million contract to build a factory in Kuala Langat, Selangor. THOSB secured the contract from Alpha Estate Sdn Bhd on Monday, for the construction of one unit of single factory, together with a two-storey office building and one unit of electrical substation. The contract period is from April 19 to Dec 18 this year, and TAFI expects it to contribute positively to the group’s earnings for the financial year ending Dec 31, 2023 (FY2023).

Jiankun International Bhd’s unit is acquiring a parcel of leasehold land in Klebang, Melaka for RM26 million, which will be partially funded through a private placement. The wholly owned unit, Key Success Development Sdn Bhd, is purchasing the 40,469 sq metre-land from Cash Support Group Sdn Bhd to undertake a commercial development. Jiankun said RM14 million out of the RM26 million purchase consideration will be funded via a private placement, with Eclipse International Sdn Bhd subscribing for 70 million new shares, representing 19.42% of the total number of issued shares in Jiankun as at April 13. The remaining RM12 million of the purchase consideration will be funded via the group’s internal funds and bank borrowings.

Malayan Flour Mills Bhd (MFM), via its 51%-owned joint-venture (JV) company Dindings Tyson Sdn Bhd (DTSB,) has allocated about RM135 million for its poultry integration business. DTSB will invest further to meet and support the continued demand for its poultry products in Malaysia. The country’s second largest flour miller said that the investment is earmarked to improve the wastewater treatment facility, embark on phase two of its rendering plant, and set up a new further processing plant. 

MN Holdings Bhd said its wholly owned subsidiary Mutu Nusantara Sdn Bhd has secured a contract from Rentak Segar Sdn Bhd to undertake the engineering, procurement, construction and commissioning (EPCC) of a natural gas distribution system in Tanjung Malim, Perak, worth RM20.2 million. The group said the project duration is between April 2023 and February 2025.

Seni Jaya Corp Bhd’s unit has won an award from Prasarana Malaysia Bhd’s unit to promote out-of-home advertising on the LRT Ampang Line starting July 1 this year, for five years, with a possible extension of another five years. The groups’ wholly owned unit Seni Jaya Sdn Bhd (SJSB) accepted the letter of acceptance (LOA) dated April 12 from Prasarana Integrated Development Sdn Bhd (PRIDE) to perform sales, marketing and business support for LRT Ampang Line’s external advertising.

Lembaga Tabung Haji has ceased to be a substantial shareholder of automation manufacturing and technology solutions provider Pentamaster Corp Bhd. Tabung Haji sold 400,000 shares in Pentamaster last Friday (April 14), which trimmed the pilgrim fund’s stake in the group to 4.95%, from 5.02% previously. While the transacted price was not disclosed, based on Pentamaster’s closing price of RM5.05 last Friday, the block of shares was worth RM2.02 million. 

CTOS Digital Bhd’s net profit rose 32.9% to RM16.58 million for the first quarter ended March 31, 2023 (1QFY2023), from RM12.48 million a year earlier, on the back of a strong performance by its business segments but offset by a slightly lower share of profits of associates and higher finance costs. 

Quarterly revenue increased 39.6% to RM59.6 million from RM42.7 million, contributed by strong growth in all three segments, namely key accounts (group's highest revenue-generating customers and other selected customers), commercial (remaining Malaysian operations commercial customers) and direct-to-consumer (retail customers). The group declared a first interim dividend of 0.433 sen per share, totalling RM10 million — an increase of 33% from a year earlier and representing a payout ratio of 60.3%.

Boustead Holdings Bhd (BHB) has set May 22, 2023 as the first closing date for the conditional voluntary takeover offer by Lembaga Tabung Angkatan Tentera (LTAT) to acquire the remaining shares in Boustead Holdings. It said that if the offer has become or been declared unconditional prior to the first closing date, the offeror (LTAT) will keep the offer open for acceptances for not less than 14 days thereafter, which shall not be later than the 74th day from the posting date.

Bina Puri Holdings Bhd’s rights issue with warrants to raise up to RM58 million has been undersubscribed by 6.63%. At the close of acceptance on April 11, the valid acceptances and excess applications totalled 1.29 billion rights shares, which is 93.37% of the 1.38 billion rights shares made available for subscription. Bina Puri received valid acceptances totalling 587.94 million shares or 42.46% of the total shares available, and excess applications for 704.83 million shares or 50.91% of the total shares available.

Pertama Digital Bhd has teamed up with Kridentia Tech Sdn Bhd to jointly explore projects using digital ID solutions and discuss a potential collaboration in developing other digital products and services, including jointly participating in government projects. Pertama said some of its existing digital projects includes eJamin, a bail payment solution available at Malaysian courts, and the MyPay mobile app that offers payment solutions for selected government agencies.

Axiata Group Bhd's 63%-owned tower arm, edotco Group Sdn Bhd, has announced the implementation of a long-term incentive plan (LTIP) for its employees and executive directors, which will be in force for up to 10 years. Under the LTIP, eligible employees will be granted edotco shares and once accepted by these employees, will be vested subject to achievement by edotco Group and eligible employees of certain targets. Rewards attributable to vested LTIP grants may be in the form of edotco shares, cash, or a combination of both. Total edotco shares that may be issued under the plan shall not exceed in aggregate 3% of edotco's issued shares (excluding treasury shares, if any) at any point in time.

OSK Ventures International Bhd's founder and largest shareholder Tan Sri Ong Leong Huat @ Wong Joo Hwa will assume the position of non-executive chairman in the group from Tuesday (April 18). Ong established OSK Ventures — which supported and incubated a number of successful technology companies in Malaysia — in 2003. Ong is the largest shareholder of OSK Ventures, with a 65.84% stake held via OSK Equity Holdings Sdn Bhd and OSK Holdings Bhd.