Corporate results: MISC, MQTech, Econpile and Gagasan Nadi Cergas

MISC buys 6 ethane vessels for RM3b

MISC Bhd is purchasing six newbuild 98,000 cubic metres ethane carriers (VLECs) from indirect wholly-owned subsidiaries of Zhejiang Satellite Petrochemicals Co Ltd for US$726 million (RM3.09 billion). MISC president group CEO Yee Yang Chien said the acquisition of the six vessels is complementing its offering in the large scale ethane transport. “As one of the only three owners in the world who owned such vessels, this new addition to our fleet would strengthen MISC’s competitive advantage in this segment,” he said in a statement yesterday. The national shipping liner said its vessel-owning entity, Portovenere and Lerici (Singapore) Pte. Ltd. (PLS), has entered into time charter parties (TCPs) with Zhejiang Satellite Petrochemicals for the charter of the six vessels for a period of 15 years. The charters are expected to commence in the fourth quarter of 2020 (4Q20). 


MQTech partners with Hong Kong company to acquire medical rubber glove factory

MQ Technology Bhd unit Microlead Manufacturing Sdn Bhd has inked an investment and collaboration joint venture (JV) agreement with Hong Kong-based JD Resources International Ltd to buy a nitrile rubber glove factory. Under the JV agreement, both companies have also agreed in the manufacturing and marketing of gloves and possessing the on-going glove making factory, its machineries, intellectual patent rights and fixed assets of buildings and land at the purchase price to be negotiated and agreed upon by both parties. MQTech and JD shall subscribe and participate in the capital of the JV company at all times in the proportions of 30% and 70%, respectively. Both parties also mutually agree that MQTech shall be entitled to increase its participation in the equity capital of the JV company by another 30% by acquiring 30% of equity capital held by JD at fair market value in due course. MQTech ED Terence Cheah Eu Lee said the negotiation for the glove company is at an advanced stage at the moment, and more information will be announced to keep the company’s shareholders informed in a timely manner. JD chairman Datuk Muzamir Mustafa said several local banks have shown strong interest to participate in this acquisition exercise of the glove factory and currently the company is negotiating with four glove companies before it concludes the acquisition in one or two weeks. All measures and expenses relating to the acquisition of the glove company shall be borne and paid for by both parties in the same proportion earlier mentioned.


Econpile secures piling works for RM21.4mil

Econpile Holdings Bhd has secured its maiden piling contract totalling RM21.4 million from Allevia Sdn Bhd for the development of a 44-storey and 40-storey condominium, a two-storey basement parking and an eight-storey podium in Kuala Lumpur. It said the contract includes earthworks, piling, pile caps, substructure, elevated road and earthing system works. The group said the project is expected to be completed in 14 months between July 2020 2021 and September 2021. It added the contract is expected to positively contribute to the group’s earnings in its financial year 2021 (FY21) and 2022 (FY22). Econpile ED and group CEO Raymong Pang said securing contracts amid the lethargic economic activity due to the Covid-19 signals property developers’ resilience. “Bored piling is often most suitable for highly-congested areas of which existing buildings are within close proximity. We are familiar and well versed in this territory, so this falls right into our expertise,” he said in a statement. 


Gagasan Nadi Cergas secures another affordable housing project in Selangor worth RM40mil

Construction group and concessionaire Gagasan Nadi Cergas Bhd secured an affordable housing project worth RM40 million in Serendah, Selangor.The project entails the group’s involvement into development rights agreement (DRA) with Menteri Besar Selangor (Pemerbadanan) (MBI) to construct 148 homes with indicative gross development value of RM60.8 million. It comprises 108 units of terrace houses and 40 units of townhouses under the Rumah Selangorku programme and will be built on a land measuring 12.9 acre. On July 8, the group has recently secured a construction contract worth RM777 million to construct 4,319 units of affordable homes in Shah Alam under the Rumah Idaman programme by the Selangor state government.The newly awarded project is expected to contribute positively towards Gagasan Nadi Cergas’ future earnings for the duration of the contract and brings the group’s total outstanding order book to approximately RM1.3 billion. It will also provide positive contribution until the financial year ending Dec 31, 2026, said the group. Its other ongoing affordable housing projects are PR1MA Homes in Kelantan and the development of 447 units of affordable landed homes under the Selangorku Perumahan Penjawat Awam Malaysia housing programme in its Selindung Ulu Yam township.