Caely, TNB, Sime Darby Plantation, MBSB, CIMB, Econframe, Press Metal, Tanco, Harn Len, Stella

KUALA LUMPUR (October 21): Here is a brief recap of some corporate announcements that made the news on Friday October 21, involving Caely Holdings Bhd, Tenaga Nasional Bhd, Sime Darby Plantation Bhd, Malaysia Building Society Bhd, CIMB Group Holdings Bhd , Econframe Bhd, Press Metal Aluminum Holdings Bhd, Tanco Holdings Bhd, Harn Len Corp Bhd and Stella Holdings Bhd.

Caely Holdings BhdThe new board of directors has announced plans to expand the lingerie maker’s business with a total investment of US$800,000 (RM3.79 million) in Indonesia by the first quarter of next year. Its directors have said that ongoing lawsuits, investigations by authorities and its frozen bank accounts will not jeopardize the group’s future operations and developments. Caely chief executive Francis Leong Seng Wui said the group was in talks for a joint venture with an Indonesian counterpart to set up a new production plant in the republic to generate additional revenue.

Tenaga National Bhd (TNB) has received a Letter of Intent (LOI) for the development of a 2,100 megawatt (MW) combined cycle power plant at Kapar. The letter of intent was awarded by the Department of Energy and Natural Resources to TNB’s wholly-owned unit, TNB Power Generation Sdn Bhd, TNB said without disclosing the amount of the project.

Sime Darby Plantation Bhd plans to eliminate the need for manual workers in all non-harvesting activities by the end of 2023, as it has successfully mechanized several tasks in its plantation operations in Malaysia. The plantation group plans to reduce the number of plantation workers by 55% by the end of 2023.

Malaysia Building Society Bhd (MBSB) said it has applied to Bank Negara Malaysia (BNM) for approval for its acquisition of Malaysian Industrial Development Finance from Permodalan Nasional Bhd (PNB), to form a universal Islamic banking group. Meanwhile, MBSB said it also entered into an implementation agreement with PNB to sign a definitive agreement for the acquisition, after obtaining BNM’s approval. If the merger goes through, MBSB would cement its position as the country’s second-largest standalone Islamic bank by assets, behind Bank Islam Malaysia Bhd, which had assets of RM83.03 billion as of June 30.

CIMB Thai Bank PCL, 94.83% owned by CIMB Group Holdings Bhd, reported a 7.6% year-on-year decline in net profit for the third quarter ended September 30, 2022 (3QFY22) to 695.97 million baht (RM85.98 million), compared to 753.38 million baht, while net interest income for the quarter under review fell 2.8% to 2.42 billion baht from 2.48 billion baht in 3QFY21. The decline in net profit was due to lower net interest income, combined with higher operating expenses, higher income tax expense and a slight increase in expected credit losses. For the first nine-month period this year, CIMB Thai’s net profit rose 656% to 2.81 billion baht from 1.71 billion baht for the previous corresponding period, while net interest income fell 6.4% to 7.08 billion baht from 7.57 billion baht.

Listed on the ACE market Econframe BhdNet profit climbed to RM2.97 million for the fourth quarter ended August 31, 2022 (4QFY22), from RM50,000 a year ago, driven by higher revenue driven by higher order volume executed. Revenue for the quarter more than tripled to RM16.32 million from RM4.98 million. For the financial year ended August 31, 2022 (FY22), Econframe reported an annual net profit of RM11.24 million, a two-fold jump year-on-year from 5.11 million RM that it achieved in the previous year, in line with the increase in revenues and the reduction in administrative costs. Cumulative revenue climbed 44.92% to RM59.4 million from RM40.99 million in FY21, driven by higher sales in its manufacturing segment and higher sale price of metal door frames.

Press Metal Aluminum Holdings BhdThe Koon brothers sold 123.59 million shares off-market, representing a 1.5% stake in the company, for RM605.59 million. The shares were sold on Tuesday (18 October) at RM4.90 each. The shares were sold by the five Koon brothers, namely Group General Manager Tan Sri Koon Poh Keong (51.59 million), Executive Vice President Koon Poh Ming (20 million) and Executive Directors Koon Poh Weng ( 30 million), Datuk Koon Poh Tat (17 million) and Koon Poh Kong (five million). This is the second time in two months that the Koon brothers have sold their shares. This leaves the brothers with a collective 16.9% direct stake in Press Metal and a 38.91% indirect stake, including Poh Keong’s deemed stake in Alpha Milestone Sdn Bhd, which owns a 34% stake in the listed entity.

Tanco Holdings Bhd plans to raise up to RM47.7 million via private placement for repayment of bank loans and investments in complementary businesses. The exercise will see up to 176.66 million shares or 10% of the group’s total shares issued to independent third-party investors, issued at a price to be determined later.

Harn Len Corp Bhd, which returned to profitability in the second quarter ended June 30, 2022, offered an eight-for-five free issue of up to 411.17 million shares. The date of eligibility for the issuance of the bonus would be determined later.

Stella Holdings Bhd said the diversified company on Friday received notice of an unconditional mandatory tender offer at 95 sen per share from joint offerors Varia Engineering & Services Sdn Bhd, Datuk Lau Beng Wei and Datuk Lau Beng Sin, who collectively have the intention to acquire the remaining Stella shares not held by them. The tender offer comes after the joint offerors on Friday entered into an unconditional share purchase and sale agreement with a group of shareholders to acquire a total of 34.66 million shares of Stella, representing a stake of 51.73%. The joint offerors intend to maintain Stella’s listing on the main market of Bursa Malaysia.