Executive summary for capital markets news | Mon 10 Apr 2023
Executive Summary for Capital Markets News | Mon 10 Apr 2023
Spritzer proposes 1-for-2 bonus shares
This will entail the issuance of 106.44m new shares at an entitlement date to be determined. Spritzer’s shares will increase from the current 212.88m – including 27.33m treasury shares and giving a share capital of RM223.24m – to 319.31m. The bonus shares will be issued as fully paid at nil consideration and without capitalisation of the company’s reserves. The treasury shares will also be entitled to bonus shares and such bonus shares will be treated as treasury shares held by the company. The exercises will be completed in 2Q2023. It forms part of the company’s shareholder value enhancement plan which includes maintaining the dividend payout ratio, increasing the annual dividends per share and performing share buy-backs. UOB Kay Hian is the adviser. The counter closed at RM2.36, just 24 sen shy of its all-time high of RM2.60 on 29 Apr 2016.
Press Metal to supply RM780m aluminium to Hong Kong company
The company struck a deal with Daching Enterprises Ltd to immediately export aluminium ingots worth RM110m plus a further RM670m over 5 years. The deal was signed on 4 Apr 2023 in conjunction with the trade and investment mission to China led by the international trade and industry minister. Daching will continue sourcing low-carbon ingots from Malaysia due to the quality, service delivery, sustainability and professionalism. It is one of the world’s largest manufacturers of premium thin gauge aluminium foil with an annual production capacity of 120k tonnes of aluminium foil and 220k tonnes of aluminium sheet products which are sold to customers worldwide and widely used in the packaging of food, beverages and pharmaceutical products, and as cathode foil in batteries for electric vehicles. The counter closed at RM4.95.
NCT Smart Industrial Park Phase 1 gets 40% bookings
Since it was launched in 2022, the company secured 40% bookings for Phase 1 of the industrial park in Selangor. On 7 Apr, the company announced its first foreign investor, YP Technology Development Co Ltd (YP), which will purchase 48.05 acres. NCT Smart Industrial Park (NSIP) is located at the Integrated Development Region in South Selangor (IDRISS) within the districts of Kuala Langat and Sepang. Its RM8b gross development value (GDV) will be developed in 3 phases over 10 years. The NSIP is targeted at the electrical and electronics, semiconductors, smart logistics, transportation and IR 4.0-inspired industries. It is also GreenRE-certified with solar-ready factories, rainwater harvesting systems, and water and waste management systems. Phase 1 with a GDV of RM2b on 230 acres will be completed in 4Q2025. It consists of 101 units of semi-detached, detached and link-detached factories, each with a showroom, a corporate office, loading and unloading bays, production area and warehouse. Phase 1 will also have 27 industrial land plots of up to 50 acres priced from RM4m. AmBank, UOB and MBSB are financing the development. Chin Hin Group will supply building materials, construction solutions, furniture and fittings. NCT Alliance closed at 40 sen.
Khazanah sells Iskandar Malaysia Studios
Granatum Ventures Sdn Bhd – a wholly-owned subsidiary of the Malaysian government-owned fund – entered into a definitive share sale agreement to divest 100% in Iskandar Malaysia Studios Sdn Bhd (IMS) to Studio Management Services Sdn Bhd (SMS). The buyer is a consortium led by the current management team of IMS in partnership with Singapore’s GHY Culture & Media. The new owners will be able to contribute to greater utilisation of IMS by regional and global players supported by the local production ecosystem. SMS is also expected to improve the services provided by IMS to the industry and facilitate future partnerships and production opportunities for Malaysia. IMS will have better capacity to attract large productions and build a large content production pipeline. Khazanah’s rationale for the sale is to attract foreign investment and to bring economic and social benefits into Malaysia.
Crypto is most significant AML / CFT risk
Decentralised finance (DF) services which are not compliant with anti-money laundering (AML) and counter financing for terrorism (CFT) rules pose the most significant current illicit finance risk. DF offers financial instruments by using smart contracts on blockchain technology. Among others, thieves, scammers, ransomware cyber criminals and actors for North Korea use DF to launder criminal proceeds. The US Treasury admits that the private sector must play an active role by using the findings of its 2023 DeFi Illicit Finance Risk Assessment published on 6 Apr to inform their respective risk mitigation strategies. The report warns that DF services do not currently implement AML / CFT controls and comply with sanctions obligations. Failure to identify customers allows layering to occur instantaneously and pseudonymously.
