T7 Global gets contracts from Carigali
T7 Global Bhd’s subsidiary, Tanjung Offshore Services Sdn Bhd (TOS), and its sub-subsidiary has received letters of award from Petronas Carigali Sdn Bhd to provide splash zone structural repairs and maintenance. The contract value is based on the unit rates as stipulated in the contract price schedule. The contract is for two years commencing Jan 2, 2019, with a one year extension option, T7 noted in its exchange filing yesterday. The sub-subsidiary, Fircroft Tanjung Sdn Bhd, received an umbrella contract to provide manpower services to Carigali’s wholly-owned subsidiary, Vestigo Petroleum Sdn Bhd. The contract’s duration is for a two-year period from Oct 19, 2018 with one year extension option. Fircroft Tanjung is expected to obtain and maintain a valid license with Petroliam Nasional Bhd throughout the period.
Ekovest to acquire stake in plantation firm for RM76m
Ekovest Bhd intends to buy a 23.42% stake in loss-making PLS Plantations Bhd for RM76.5 million with the intention to reduce its reliance on existing businesses. The proposed deal sees Ekovest buying 76.5 million shares at RM1 apiece in PLS from shareholder Serumpun Abadi Sdn Bhd (SASB). PLS operates and maintains Ladang Hutan Ulu Sedili, a forest plantation project covering 35,223 ha within Kota Tinggi and Mersing in Johor, but has been raking up losses from 2015 to 2018 due to fluctuations in the plantation industry. Ekovest will fund the deal with internally generated funds. The acquisition is not subject to shareholders’ approval and is expected to be completed by the first quarter of this year. SASB is 23.42% owned by Tan Sri Lim Kang Hoo, who is chairman at Ekovest and PLS.
Carlsberg Malaysia appoints new MD
Theodoros (Ted) Akiskalos is succeeding Lars Lehmann as Carlsberg Brewery Malaysia Bhd’s MD. In an exchange filling yesterday, the brewer noted the 52-year old Lars is set to become CEO at Baltika, Carlsberg group’s company in Russia. Akiskalos, 40, is the current Carlsberg Sweden MD and was Associate Principal of McKinsey & Company in Boston, USA, prior to joining the Carlsberg Group.
KESM’s net profit falls 96%
KESM Industries Bhd posted net profit of RM474,000 for its second quarter (2Q) ended Jan 31, 2019, 95.76% year-on-year (YoY) lower, due to lower revenue and other income. Revenue for the period was lower by 11% YoY at RM81.11 million due to lower demand for burn-in and testing services, although it was mitigated by higher revenue from electronic manufacturing service rendering. The company’s chairman and CEO Sam Lim said the US-China trade war weakened the company’s growth, which led to customers taking steps to institute tighter inventory control measures. Profitability was adversely affected by lower margin despite the increase in its electronic manufacturing services activities from new customers, Lim noted in a release yesterday.
Trive seeks control of Persoft Tower via stake buy in AESB
Trive Property Group Bhd will subscribe to a 60% stake in Avenue Escapade Sdn Bhd (AESB) for RM17.36 million to gain access to the latter’s office space in Persoft Tower. Under a conditional subscription agreement, Trive, a property developer and solar power producer, will subscribe to 150 new shares in AESB which owns 25 units of stratified office, one lower and upper penthouse unit and 249 car park bays in the Petaling Jaya-based Persoft tower. The decision was made with the view of bolstering the group’s earnings via the office tower’s rental income as well as benefit from the potential capital appreciation of the tower’s market value. The proceeds from the subscription will be used to repay AESB’s existing advances of RM17.32 million owed to existing shareholders namely Ong Kah Hoe and Ong Kah Wee, while the remainder will go towards the company’s working capital, Trive noted in its exchange filing yesterday. Trive intends to fund bulk of the subscription with its RM18.74 million raised from its rights issue last year while the remainder from internally generated funds and/or bank borrowings. The deal requires Trive’s shareholders approval as the money raised was intended to the finance the first phase of its Kertih property project. The proposals are expected to be completed by the second quarter of this year.
Berjaya Media incurs higher losses on lower ad revenue, legal costs
Berjaya Media Bhd’s net loss widened to RM7.96 million for its third quarter ended Jan 31 this year (3Q19) on lower advertising revenue and legal compensation paid. The media group posted a net loss of RM2.45 million net loss in 3Q18. Revenue for the period declined 16.4% year-on-year (YoY) to RM6.94 million. In an exchange filing yesterday, the practice note 17 (PN17) company noted the weaker fiscal performance was due to lower advertising income reported by its principal operating subsidiary, Sun Media Corp Sdn Bhd who owns and publishes theSun. The company was also made to pay RM5.91 million in court damages by the High Court on Jan 31 this year in relation to suits filed against Sun Media. For the nine months, Berjaya Media posted a RM13.28 net loss and as revenue fell by 22.1% YoY to RM20.84 million. The company added it is exploring options including diversifying into new businesses to strengthen its financial position and regularise its PN17 condition. It has till June 20 this year to submit its regularisation plan to Bursa Malaysia.