KUALA LUMPUR (Jan 14): Based on corporate announcements and news flow Friday, companies that may be in focus on Monday (Jan 17) include AirAsia Group Bhd, KESM Industries Bhd, Ageson Bhd, CIMB Group Holdings Bhd, Ahmad Zaki Resources Bhd and Lion Industries Corp Bhd.
AirAsia Group Bhd, whose share price fell as much as 26% on Friday after the low-cost carrier was classified as a Practice Note 17 (PN17) company, is now in the midst of formulating a plan to regularise its financial condition, its group chief executive officer Tan Sri Tony Fernandes said.
After market close, Fernandes issued a statement to say that the low-cost carrier is taking all necessary steps to address its PN17 status, which he said is a reflection of the current state of its balance sheet that has been negatively impacted by the Covid-19 crisis.
The co-founder also assured that the airline will have sufficient liquidity to ride out the effects of the Covid-19 pandemic in 2022, as it plans to raise up to RM400 million in additional capital this year.
Commenting further on the airline business, Fernandes said there may be some delays for international flights to return to pre-Covid levels due to Omicron variant, but he believes these will be "short lived", thanks to accelerated booster shots and the world learning to live with the coronavirus.
Independent burn-in and test service provider KESM Industries Bhd said its plant in China under KESM Industries (Tianjin) Co Ltd has stopped production to observe lockdown regulations imposed by the local government following the discovery of Covid-19 cases.
Construction and property development company Ageson Bhd (formerly known as Prinsiptek Corp Bhd) has decided to scrap its sand supplies deal, worth an estimated combined value of RM27.96 billion. It attributed the decision to “high shipping costs” caused by the Covid-19 pandemic. It claimed it had not commenced the sand trading business so far, adding that “the sand offer letters do not constitute any legally-binding commitment and there were no definitive agreements entered between the parties as at the date of this announcement.”
The sand supply contracts the company mentions include a US$26.6 million (RM116.77 million) contract secured in April 2020 to sell natural sand to Hong Kong-based Boyijun Resources (HK) Ltd; a purchase order it secured in May 2020 worth RMB44.8 billion (RM27.5 billion) from a China-based Guangzhou Kaishengda Industrial Co Ltd for the supply of river and sea sand; and one order of US$79.5 million (RM339.03 million) worth of supply of silica sand to South Korea firm Techpack Solutions Co Ltd that was secured in August 2020.
CIMB Group Holdings Bhd’s unit CIMB Bank Bhd has priced its US$500 million RegS/144A Sustainable Development Goals Bond (SDG bond) on Jan 13, 2022 — the first-ever RegS/144A SDG Bond to be issued by a Malaysian bank in the international capital markets. CIMB Bank said the USD SDG bond also marked the first-ever 144A bond offering into the US markets by a Malaysian bank. Proceeds from the SDG bond will be channelled to various eligible financing assets/projects such as affordable housing, start-ups and small and medium enterprises, public schools and hospitals, green mass transit, climate resilient buildings and infrastructure, forestry and wildlife conservation projects, as well as Covid-19 and other global pandemic financing.
Ahmad Zaki Resources Bhd (AZRB) has proposed to acquire a parcel of freehold industrial land and a factory in Ulu Selangor from MTD Group's units for RM41 million cash. The construction group said the proposed acquisition will provide AZRB with the opportunity to utilise the industrial land to further expand its in-house production of precast concrete components as well as to serve as a store or depot for the group.
Lion Industries Corp Bhd (LICB) has proposed to dispose of its entire stake in Eden Flame Sdn Bhd, which owns a long-steel product manufacturing plant in Pasir Gudang, for RM135.88 million cash. LICB said its unit Amsteel Mills Sdn Bhd, has entered into a conditional sale and purchase agreement with Esteel Enterprise Pte Ltd for the proposed disposal. Following the disposal, LICB is expected to realise a gain of approximately RM56.54 million. Eden Flame billets are rolled into steel bars and light sections such as angle bars, flat bars and U-channels.