CORP BRIEF: Axiata, MMHE and Unisem

by TMR / pic by TMR FILE

Axiata to acquire 66% interest in Link Net 

AXIATA Group Bhd and its subsidiary, PT XL Axiata Tbk had entered into a non-binding term sheet with Asia Link Dewa Pte Ltd and PT First Media Tbk last Friday to facilitate discussions for a potential acquisition of over 1.81 billion shares representing approximately 66.03% of the entire issued and paid-up capital of PT Link Net Tbk owned by the sellers. In an exchange filing last Friday, the group noted that there will be a change in control in Link Net if the definitive agreement is signed. Subsequently, Axiata and/or XL will be required to conduct a mandatory tender offer to purchase the remaining shares in Link Net. Link Net is involved in telecommunication services including internet service provider and communication system services, among others. The group currently provides services through a broadband communication network including distribution of TV programmes and high-speed Internet through the network in Jakarta, Bogor, Tangerang, Bekasi, Surabaya (include Malang and Gresik), Bali, Bandung, Medan, Batam, Solo, Semarang, Serang and Cilegon areas. All of its shares were listed on the Indonesian Stock Exchange on June 2, 2014.

MMHE loss tapers in 2Q 

MALAYSIA Marine and Heavy Engineering Holdings Bhd (MMHE) has narrowed its net loss to RM34.38 million for its second quarter ended June 30, 2021 (2Q21), from a net loss of RM397.02 million for the corresponding quarter last year, attributable to lower impairment loss amounting to RM7.9 million. The impairment loss was due to the prolonged downturn in the offshore support vessel market as a result of the pandemic. Revenue surged 94.7% year-on-year to RM302.45 million in 2Q21 from RM155.31 million last year, due to higher revenue from its heavy engineering and marine segments. Marine business prospects are expected to continue to be impacted by the nation’s prevailing stringent border restrictions.

Unisem 2Q profit up 61% 

UNISEM (M) Bhd’s net profit rose 60.9% year-on-year (YoY) to RM54.64 million for its second quarter ended June 30, 2021 (2Q21), from RM33.95 million last year, mainly due to higher revenue achieved and increased interest income. Revenue grew 29.7% YoY to RM402.23 million from RM310.08 million in 2Q20, attributable to higher sales volume and increase in average selling prices despite the depreciation of US dollar/ringgit exchange rates, according to an exchange filing last Friday. Year-to-date, its net profit jumped 221.5% YoY to RM100.05 million from RM31.12 million while revenue surged 37.3% YoY to RM776.17 million from RM565.24 million in 2Q20. The directors expect the performance of the group to be satisfactory for the next financial quarter. The board approved the first interim dividend of two sen per share tax-exempt for the financial year ending Dec 31, 2021, payable on Sept 3, 2021.