theSundaily.my Business http://www.thesundaily.my/sites/default/files/images/thesundaily_logo_google.png theSundaily.my Business http://www.thesundaily.my/rss/business http://www.thesundaily.my/rss/business en MBSB receives green light from Bank Negara, Ministry of Finance for merger with Asian Finance Bank http://www.thesundaily.my/news/2017/08/18/mbsb-receives-green-light-bank-negara-ministry-finance-merger-asian-finance-bank
MBSB told Bursa Malaysia that it had received notification from BNM vide its letter dated August 18, that the Minister of Finance has granted approval for the proposed acquisition by MBSB of 100% interest in AFB shares pursuant to the Islamic Financial Services Act 2013.

"Further details will be announced upon the finalisation and execution of the definitive agreement," the group added.

The proposed merger will create the second largest Islamic bank in the country with total assets of around RM48 billion.

MBSB aims to become an Islamic financial institution by 2020 through its merger with AFB. The full bank licence will allow MBSB to tap into new financial services segments which it cannot offer at the moment, such as trade facilities, collecting current account savings account (CASA) deposits and offering other interbank instruments to expand its business.

AFB, a full-fledged Islamic bank that was incorporated in November 28, 2005, has a branch each in Kuala Lumpur and Johor Baru as well as a representative office in Jakarta, Indonesia, according to its website.

MBSB shares fell one sen to close at RM1.27 on Friday, with some 1.59 million shares done, giving it a market capitalisation of RM7.52 billion.]]>
Business Fri, 18 Aug 2017 12:42:01 +0000 sunbiz@thesundaily.com 472501 at http://www.thesundaily.my
Tune Protect Q2 net profit down 50.87% on higher net claims http://www.thesundaily.my/news/2017/08/18/tune-protect-q2-net-profit-down-5087-higher-net-claims
In a filing with Bursa Malaysia, the group said the increase in net claims was mainly from the motor class of its general insurance business, but was offset by a minor improvement in share of profits of overseas ventures.

The decline in net profit was also due to the subdued topline of its Digital Global Travel as a result of the Malaysian Aviation Commission's opt-in ruling on ancillary offerings online.

Revenue for the quarter rose 6.65% to RM133.88 million from RM125.54 million a year ago due to an increase of RM11.9 million in gross earned premiums (GEP) mainly from the motor class of general insurance business.

For the general reinsurance business, operating revenue was lower at RM27.5 million during the quarter, compared with RM32.5 million a year ago due to lower GEP in Malaysia, Australia and China markets.

The segment's profit was also lower at RM13.2 million compared with RM14.5 million a year ago, due to a decrease of RM4.6 million in net earned premiums (NEP) mainly in Malaysia, China and Australia markets.

This was offset by decreases in net commission, net claims and management expenses totaling RM3.3 million.

For the general insurance business, operating revenue was higher at RM116.5 million compared with RM107.8 million a year ago due to improvement of RM12.1 million in GEP of the motor class, offset by a decrease of RM3.4 million in investment income due to lower share of MMIP investment income and marginally lower interest income.

The segment's profit plunged to RM2 million from RM24.3 million a year ago due to higher net claims of the motor class.

For the six months ended June 30, 2017, Tune Protect's net profit fell 49.20% to RM24.94 million from RM49.10 million a year ago while revenue rose 3.48% to RM263.96 million from RM255.08 million a year ago.

Moving forward, the group said it has rolled out a number of pricing and marketing initiatives for the global travel business and these are expected to gain traction in the topline in the second half of the year.

In addition, new products such as annual plans and migrant plans are scheduled to be launched later in the year.

"We also expect to formalise a new partnership with an Asean airline, bringing us closer to becoming a leading travel insurer in the region," it said. The partnership with Cambodia Angkor Air is slated to commence in 3Q2017.

In terms of the general insurance business, the group will continue efforts to address the high claims from the motor class with its strategies focusing on providing further online accessibility and product differentiation via risk-adjusted pricing.

The group's share price fell 0.98% to close at RM1.01 on Friday with a total of 2.33 million shares traded, giving it a market capitalisation of RM759.28 million.]]>
Business Fri, 18 Aug 2017 12:14:17 +0000 sunbiz@thesundaily.com 472488 at http://www.thesundaily.my
Eduspec proposes private placement again to raise up to RM18.42 million http://www.thesundaily.my/news/2017/08/18/eduspec-proposes-private-placement-again-raise-rm1842-million
Eduspec said in a Bursa Malaysia filing that the exercise will see the placement of up to 131.55 million new shares, representing up to 10% of its total issued shares. The placement shares will be placed out to third party investors to be identified at a later date.

Proceeds raised will be used for working capital requirements as well as the migration of group’s current information technology learning and robotics classes and to localise the language curriculum for its Science, Technology, Engineering and Mathematics education using Robotics and Computer Science for Schools Programme.

Recall that Eduspec had on July 24 completed the previous placement with the issuance of 84.8 million shares raising RM20.67 million, a shortfall of about RM3.03 million and RM14.98 million under the minimum scenario and maximum scenario, respectively.

At its AGM held on February 27, the group had obtained a new mandate from its shareholders for the issuance of new shares not exceeding 10% of the total issued shares.

Eduspec said at this juncture, the proposed private placement exercise is the most appropriate avenue of fund raising without incurring additional interest expense, and minimising any potential cash outflow as compared with other financing methods such as bank borrowings.

"The proposed private placement will strengthen the group's financial position and capital base and may potentially enhance the liquidity and marketability of Eduspec shares," it added.

Eduspec's shares remained unchanged at 13.5sen on Friday on some 827,100 shares done. Its market capitalisation stood at RM 125.93 million.]]>
Business Fri, 18 Aug 2017 12:09:27 +0000 sunbiz@thesundaily.com 472487 at http://www.thesundaily.my
Audit exemption for selected private companies http://www.thesundaily.my/news/2017/08/18/audit-exemption-selected-private-companies
It said in a statement that companies that fall under these three categories are exempted from having to appoint an auditor and to impose the criteria and conditions accordingly.

A dormant company qualifies for audit exemption if it has been dormant from the time of its incorporation; or it is dormant throughout the current financial year and in the immediate preceding financial year.

A zero-revenue company is qualified for audit exemption if it does not have any revenue during the current financial year; it does not have any revenue in the immediate past two financial years; and its total assets in the current Statement of Financial Position (FS) does not exceed RM300,000 as well as in the FS of the immediate past two financial years.

A threshold-qualified company is qualified for an audit exemption if it has revenue not exceeding RM100,000 during the current financial year and in the immediate past two financial years; its total assets in the current FS does not exceed RM300,000 and in the immediate past two financial years; and it has, at the end of its current financial year and in each of its immediate past two financial years' end, not more than five employees.

SSM said while it understands the importance of auditing company accounts in promoting accountability, accuracy and transparency, there is also a need to revisit the value and necessity of an audit towards balancing between the needs of the company and that of its stakeholders.

"It is an undeniable fact that the majority of small SME companies are 'owner-managed' or 'family-run businesses' where the shareholders and directors are typically the same individuals. For these small SMEs, due to the unique structure of its business model, the costs for a conventional audit mandated by law which provides negligible value added to its business may not be a justifiable cost," it explained.]]>
Business Fri, 18 Aug 2017 11:23:38 +0000 sunbiz@thesundaily.com 472471 at http://www.thesundaily.my
Spring Gallery acquires shop offices in Cheras for RM8.25 million http://www.thesundaily.my/news/2017/08/18/spring-gallery-acquires-shop-offices-cheras-rm825-million
The ceramics company announced in a Bursa Malaysia filing that, it has entered into five separate sale and purchase agreements for the purchase of five adjoining units of three-storey terraced shop offices with a total gross floor area of about 2,037 square metre.

One of the four vendors, namely Jadex Land Sdn Bhd will be selling two of its properties, each priced at RM1.65 million to Spring Gallery.

Funding for the proposed acquisition is expected to be completed by November will be sourced from internally generated funds, proceeds received from conversion of irredeemable convertible preference shares and/or bank borrowings.

Spring Gallery intends to use the properties to set up its corporate, sales and operations offices in the same location to better manage and increase the efficiency of its business operations.

Its shares fell by 0.73% to close at 68 sen on Friday with some 301,000 shares changing hands. Its market capitalisation stood at RM116.32 million.]]>
Business Fri, 18 Aug 2017 11:07:50 +0000 sunbiz@thesundaily.com 472468 at http://www.thesundaily.my
IGB REIT issues up to RM5 billion medium-term notes to fund investment activities http://www.thesundaily.my/news/2017/08/18/igb-reit-issues-rm5-billion-medium-term-notes-fund-investment-activities
In a filing with Bursa Malaysia, IGB REIT said the proceeds raised from the issue of MTNs may be used to finance its investment activities such as capital expenditure, asset enhancement and related acquisitions and financing expenses.

The proceeds could also be used to refinance its existing and/or future borrowings/facilities as well as to fund its working capital requirements.

The MTNs will be issued by IGB REIT Capital Sdn Bhd, a special purpose vehicle wholly-owned by IGB REIT via MTrustee Bhd. The MTN Programme was lodged with the Securities Commission Malaysia on Friday.

The MTN Programme will have a tenure of 20 years from the date of the first issue.

Hong Leong Investment Bank Bhd is the principal adviser, lead arranger and lead manager for the MTN Programme.

IGB REIT's share price closed unchanged at RM1.74 on Friday with a total of 781,700 shares traded, giving it a market capitalisation of RM6.07 billion.]]>
Business Fri, 18 Aug 2017 10:53:47 +0000 sunbiz@thesundaily.com 472457 at http://www.thesundaily.my
Mlabs Systems to collaborate with XOX on mobile application http://www.thesundaily.my/news/2017/08/18/mlabs-systems-collaborate-xox-mobile-application
Mlabs said in a filing with the stock exchange that the collaboration is to exploit the potential market that arises from XOX Media collaboration with PT Inovasi Telematika Nusantara and Pengurus Besar Nahdlatul Ulama (PBNU).

XOX Media, a wholly owned subsidiary of XOX Bhd, is a provider of mobile application services.

XOX Media had on July 27 entered into an MOU with PT Inovasi, a telecommunication services company in Indonesia and PBNU, an Islamic charity organisation in Indonesia for the purpose of conducting a study and to plan for the development and deployment of XOX's Voopee mobile application for integration into a new SIM card under the Nahdlatul Ulama (NU) brand with all other accompanying solutions targeting to be adopted by PBNU members.

Voopee is a mobile application that offers voice and text messaging services through cellular and/or Wifi connection.

The MOU is valid for a duration of one year.

Mlabs shares were unchanged at 21 sen on Friday on some 24.42 million shares done, giving it a market capitalisation of RM122.19 million.]]>
Business Fri, 18 Aug 2017 10:50:14 +0000 sunbiz@thesundaily.com 472456 at http://www.thesundaily.my
Genting Plantations buys oil palm firm for RM407.58 million http://www.thesundaily.my/news/2017/08/18/genting-plantations-buys-oil-palm-firm-rm40758-million
The group told Bursa Malaysia that its 100% indirect subsidiary AsianIndo Holdings Pte Ltd had entered into a conditional sale and purchase agreement with Lee Rubber Company (Pte) Ltd for the acquisition.

Genting Plantations said the proposed acquisition will increase its combined plantation landbank in Malaysia and Indonesia by 14,661 hectares from its present 227,936 hectares to 242,597 hectares.

"It also accelerates the group's upstream expansion in Indonesia as some 12,893 hectares has already been planted, thus increasing the group's total planted area in Indonesia to 84,833 hectares (from 71,940 hectares as at December 31, 2016) or an increase of 17.9%," it noted.

Genting Plantations shares rose 12 sen to close at RM10.48 on Friday on some 226,400 shares done, giving it a market capitalisation of RM8.42 billion.]]>
Business Fri, 18 Aug 2017 10:15:47 +0000 sunbiz@thesundaily.com 472436 at http://www.thesundaily.my
Magna Prima's Q2 earnings down by 86.2% on absence of fair value gain http://www.thesundaily.my/news/2017/08/18/magna-primas-q2-earnings-down-862-absence-fair-value-gain
Revenue for the quarter under review rose 42.2% from RM21.88 million to RM31.11 million.

The property developer told Bursa Malaysia that it expects the current financial year to be satisfactory.

For the first half of the year, Magna Prima reported an 83.5% plunge in net profit to RM8.15 million versus RM49.44 million in the same period a year ago, with revenue declining 12.2% from RM46.43 million to RM40.74 million.

Its shares fell one sen to close at RM1.45 on Friday, with some 197,000 shares changing hands. It has a market capitalisation of RM485.62 million.]]>
Business Fri, 18 Aug 2017 09:54:24 +0000 sunbiz@thesundaily.com 472419 at http://www.thesundaily.my
Serba Dinamik to develop RM1.4 billion Pengerang projects in 5 years http://www.thesundaily.my/news/2017/08/18/serba-dinamik-develop-rm14-billion-pengerang-projects-5-years
To be developed on 132-acre land, the projects entail the country's first Global Centre of Excellence catered for the oil and gas sector, Pengerang Eco-Industrial Park, Pengerang International Commercial Centre and Pengerang Northshore Residence,

Serba Dinamik CEO Datuk Dr Ir Mohd Karim said the first phase of the development, carrying a gross development value of RM350 million, is expected to be rolled out next year and slated for completion in two years.

Speaking to reporters after the memorandum of agreement signing between Serba Dinamik and its strategic collaborative partner Izin Budi Sdn Bhd, Mohd Karim said the development is expected to rake in a steady stream of contribution in terms of revenue and net profit over the five-year development period.

Going forward, the group will form a committee to come up with execution plans for the projects.

Izin Budi will be providing 15.87 acres of land, as part of the total 132 acres of land for the development.]]>
Business Fri, 18 Aug 2017 09:32:55 +0000 V.Ragananthini sunbiz@thesundaily.com 472415 at http://www.thesundaily.my