Corporate results: Takaful Malaysia, Muhibbah Engineering, Scomi, Country Heights and Tropicana

By TMR

Takaful Malaysia net profit rose 60.87% in 4Q18
Syarikat Takaful Malaysia Keluarga Bhd’s net profit for the fourth quarter ended Dec 31, 2018 (4Q18) rose 60.87% year-on-year (YoY) to RM90.57 million, mainly attributable to the increase in net wakalah fee income.
 
For the current quarter under review, the family takaful business recorded gross earned contributions of RM497.6 million as compared to RM316.5 million in 4Q17, mainly due to higher sales of credit related products.
 
The general takaful business generated gross earned contributions of RM166.0 million, up 18% YoY, main due to growth in its fire and motor business.
 
Its Indonesian operations recorded a loss before zakat and tax of RM5.1 million for the 12 months period ended Dec 31, 2018 as compared to loss before zakat and tax of RM1 million in 2017 due to higher expense reserves.
 
Takaful Malaysia intends to expand its market share in 2019 with innovative digital strategies and online solutions as well as the expansion of its distribution capabilities, strategic partnerships with leading Islamic banks and brand awareness initiatives. 
 
Muhibbah bags RM165m contracts from Turnpike Synergy 
Muhibbah Engineering (M) Bhd has accepted two contracts to build and commission  noise barriers from Turnpike Synergy Sdn Bhd worth a total RM165 million.
 
The first contract is for the Sungai Besi – Ulu Kelang Elevated Expressway project, while the second one is for the Damansara – Shah Alam Elevated Expressway project, its exchange filing yesterday noted.
 
The contracts are scheduled to commence by end of January 2019 with completion expected in the first quarter of 2021.
 
Scomi units put under judicial management 
Scomi Group Bhd revealed in an exchange filing yesterday, the Shah Alam High Court has on Jan 24, 2019 granted orders for Scomi Engineering Bhd and Scomi Transit Projects Brazil (Sao Paulo) Sdn Bhd to be placed under judicial management and for the appointment of Datuk Heng Ji Keng and Andrew Heng from Ferrier Hodgson MH Sdn Bhd as judicial managers of the two companies.
 
The hearing on the application for a judicial management order for Scomi Rail Bhd, which is being opposed by a debenture holder and an unsecured creditor, has been adjourned to Mar 5, 2019 to allow for the parties to file their respective affidavits in response and written submissions in relation to the application.
 
Country Heights chairman extends loan payback period
Country Heights Holdings Bhd (CHHB) said chairman Tan Sri Lee Kim Tiong @ Lee Kim Yew has agreed to extend payback period for his interest-free loan of RM84.45 million for 12 months from Jan 22, 2019 to Jan 21, 2020.
 
As at Jan 21, 2019, the total amount owing to the Lee is RM98.95 million, the property develop noted in an exchange filing yesterday.
 
In Dec 22, 2010, Country Heights entered into a loan agreement with Lee to extend the interest-free loan of RM84.45 million to the company for a period of 12 months. CHHB had entered into the extension of loan agreement dated Dec 19, 2011 with the lender to extend the tenure of the loan for an additional 24 months from Dec 21, 2011 to Dec 21, 2013.
 
Subsequently, the tenure of the loan was further extended in phases for 61 months to Jan 21, 2019.
 
Tropicana acquires 12 real estate holding companies for RM343.7m
Tropicana Corp Bhd had entered into 12 conditional share purchase agreements with controlling shareholder Tan Sri Tan Chee Sing and/or persons in concert to buy 12 real estate holding companies for a total RM1.85 billion.
 
RM343.7 million of the amounts will be satisfied via the issuance of 286.5 million new redeemable convertible preference shares (RCPS) in Tropicana at an issue price of RM1.20 each.
 
The remaining RM1.51 billion will be satisfied with RM247.1 million cash, issuance of 823.7 million RCPS at an issue price of RM1.20 and assumption of Tan’s bank borrowings of RM271.8 million.
 
The companies acquired hold some 451.68 ha of land in Klang Valley and Johor with a potential gross development value of RM24.8 billion, Tropicana’s exchange filing yesterday noted.
 
Tropicana had also entered into five memorandum of understanding to negotiate the terms of the proposed collaborations with five landowners for the development their lands.
 
Tropicana said the proposed acquisitions are expected to facilitate the continuing growth of the group’s core business as a property developer by increasing its existing land bank in Johor and Kuala Lumpur.
 
The proposed acquisitions and proposed debt settlement represents an opportunity for Tropicana to collaborate with the landowners without the need to incur significant cash outlay for land bank purchases.
 
It will allow the group to converse its cash reserves to develop the collaboration lands and the acquisition lands, its filing noted.