Business

Saturday July 25, 2009

News in brief


Scomi Rail eyes S. American jobs

PETALING JAYA: Scomi Engineering Bhd’s unit Scomi Rail Bhd will enter into a joint bidding agreement (JBA) with a partner in Brazil on July 26 for the purpose of submitting proposals for monorail projects in the South American country.

Scomi’s partner CR Almeida S.A Engenharia De Obras will be the main promoter for the proposal, with Scomi Rail as the lead partner, the company told Bursa Malaysia yesterday.

“In the event the parties are awarded the project, the costs are specified in the JBA according to the percentage held by each of them in the project,’’ Scomi Engineering said.

“If the parties were not awarded the project, or if the Sao Paulo Metro decides not to launch the bidding process, the parties will calculate the amount of costs for which each is responsible,’’ it added.

GPlus, Pilecon fail to submit reports

PETALING JAYA: Golden Plus Holdings Bhd and Pilecon Engineering Bhd told Bursa Malaysia in separate statements yesterday that they had failed to submit their annual audited accounts for the year ended Dec 31, 2008 on time.

The exchange said it might take enforcement actions against companies which failed to submit their financial statements within six months from the expiry date, which might include de-listing.

ETI Tech posts higher Q3 profit

PETALING JAYA: Battery maker ETI Tech Corp Bhd’s third-quarter net profit improved slightly of RM5.86mil in the third quarter ended May 31, up from RM5.64mil made in the same quarter last year.

Turnover was almost flat at RM21.98mil, the company said.

In a separate statement to Bursa Malaysia yesterday, ETI Tech proposed to issue free shares to shareholders on the basis of two bonus shares for every one share held.

The entitlement date will be determined at a later date. The exercise will increase the company’s paid-up share capital from RM45mil to RM68mil.

Globetronics exiting China

PETALING JAYA: Globetronics Technology Bhd plans to make a complete exit from China by end-October after the proposed sale of a unit involved in integrated circuit manufacturing.

“The board of directors, after carefully reviewing the future viability, strengths, weaknesses, opportunities and threats of the China subsidiary (in consultation with the customers’ on-going loading plans), feels that it is in the best interests of the group to consolidate all its manufacturing operations in Malaysia,’’ it said.

Globetronics Jiaxing Inc will be sold to a local textile maker for RM6.67mil, at a loss on investment of RM5.3mil for Globetronics.

“The disposal is expected to have a material effect on Globetronics’ earnings per share (EPS), which translates into a net EPS of about 1.91 sen upon completion,’’ it said,

The sale was targeted for completion by end of October.

Hubline plans capital raising

PETALING JAYA: Shipping firm Hubline Bhd has proposed to raise up to RM124mil under a plan to sell rights shares that comes with free warrants to existing shareholders.

In a statement, the company said it would set aside RM70mil of the targeted proceeds for business expansion, while the rest would be used for working capital.

Under the plan, Hubline’s shareholders will be entitled to one rights share to be sold at 20 sen each that comes with one free warrant for every two existing shares held at a date to be determined.

The rights share price of 20 sen is a 26% discount compared with the “theoretical” ex-rights price of 27 sen, based on the stock’s five-day weighted average price of 30 sen.

The exercise is targeted for completion by year-end.

IJM to fully take up unit’s shares

PETALING JAYA: IJM Corp Bhd has given a written undertaking to fully subscribe the allocated number of IJM Plantations Bhd’s rights shares and warrants to be issued by its palm oil plantation subsidiary.

The group will also apply to buy additional rights shares and warrants via excess application if the offer made to entitled shareholders were not fully taken up.

“With the undertaking, there will not be any underwriting for the proposed rights issue,’’ IJM Corp said. IJM Corp owns a 54.15% stake in IJM Plantations.

Top Glove notes rating reaffirmed

PETALING JAYA: Malaysian Rating Corp Bhd (MARC) has reaffirmed its MARC-1ID/AA-ID rating on Top Glove Corp Bhd’s RM100mil Islamic medium-term note and RM100mil Islamic commercial papers programme with positive outlook.

“The positive outlook reflects positive trends in key financial maetrics, visible in its recently-announced third-quarter results,’’ MARC said.

Continuing improvement in earnings growth, profitability and leverage measures could lead to higher ratings in the near-to-medium term.

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