CORP BRIEF: Yong Tai, Jentayu, Signature International and LBS Bina

by TMR/pic source by

Yong Tai proposed to consolidate every 5 existing shares into 1

YONG Tai Bhd (YTB) undertakes multiple corporate exercises consisting of share consolidation, bonus issue of warrants and debt settlements as the group looks to strengthen its equity base and balance sheet to tap on the post-Covid recovery. In a filing to Bursa Malaysia, the group said it proposed a share consolidation of every five shares in YTB into one YTB share and a bonus issue of up to 103 million free warrants on the basis of one warrant for every four consolidated shares. Following the consolidation of its shares, the group also proposed to enter into a debt settlement of its RM46 million debt owing to 19 creditors via the issuance of 92 million new shares at 50 sen per shares, in order to strengthen its capital structure and balance sheet. On the proposed bonus issue of warrants, the filing said the exercise would enable the company to participate in convertible securities, which are tradable on the Main Market of Bursa Securities, without incurring any cost and allow existing shareholders to benefit from any potential capital appreciation of the warrants.

Jentayu JV with Encorp in Sabah 

JENTAYU Sustainables Bhd via its wholly owned subsidiary, Ipmuda Properties Sdn Bhd (IPSB), has entered into a joint-venture (JV) agreement with Encorp Development Sdn Bhd a wholly owned subsidiary of Encorp Bhd to carry out the development of ten-storey condominium block. It will comprise 78 units with built-up areas of approximately 787 sq ft (73.11 sq m) and 530 sq ft respectively. The proposed development, with an estimated gross development value of RM68 million, will be built upon a 1.6-acre leasehold land in Kota Kinabalu. IPSB is the registered owner of the land. Development is expected to commence in July 2022 and completion is by June 30, 2026.

Signature International to acquire 23.7% stake in Fiamma 

SIGNATURE International Bhd has proposed to acquire 23.67% stake in Fiamma Holdings Bhd, with a total cash consideration of RM180 million, for Fiamma’s extensive nationwide coverage on distribution and servicing network of home and kitchen electrical appliances. This in turn expected to synergise with Signature’s kitchen cabinet and whole house customisation business. In a filing to Bursa Malaysia, Signature said the group had entered into a conditional share sale agreement with the major shareholder of Fiamma, namely Lim Choo Hong to acquire 120 million ordinary shares or 23.67% equity interest for the acquisition based on the purchase consideration of RM1.50 per share.

LBS Bina posts RM30.2m net profit in 1Q22

LBS Bina Group Bhd’s net profit for the first quarter ended March 31, 2022 (1Q22) rose to RM30.16 million from RM25.15 million in 1Q21. In a filing with Bursa Malaysia, it stated that revenue was also higher at RM409.02 million versus RM402.55 million previously. The group attributed its strong performance due to the pick-up in sales and construction activities following the easing of lockdown restrictions. On prospects, the company said the industry is currently affected by a supply chain disruption, rising building material costs, as well as labour shortages.