Category: Finance

Propel Global Berhad Confident of Expansion Plans on New Structure and Fresh Cash Injection

  • The Group actively seeking opportunities to grow O&G and building technical services businesses

Propel Global Berhad is confident that the new corporate structure as well as the cash reserve resulting from a regularisation plan that will see it take over the listing status of Daya Materials Berhad on 28 April 2022 will support expansion plans for both the oil and gas (O&G) and building technical services businesses that the Group is acquiring from Daya Materials.

Ms. Angeline Lee, Group Chief Executive Officer of Propel Global

The Group will trade under the stock name PGB and stock code 0091 from 28 April 2022 on the Main Market of Bursa Securities Malaysia Berhad. The listing of Propel Global follows the approval by shareholders at an extraordinary general meeting (EGM) on 21 January 2022 of a regularisation plan for Daya Materials that had been proposed on 31 December 2020.

Ms. Angeline Lee, Group Chief Executive Officer of Propel Global said, “We would like to thank stakeholders for keeping the faith with us on the corporate exercises that will conclude with the listing of Propel Global. We have seen the private placement representing 41% of our outstanding shares fully taken up by prominent investors and industry veterans. As a result of the funding from the private placement, Propel Global has a healthy cash balance and minimal debt as the gearing ratio has been reduced to 0.6 times.”

“The Group is actively exploring opportunities in the O&G industry especially in Sabah and Sarawak. High crude oil prices will encourage more investments into the industry, especially from oil majors. The country’s borders reopening will spur business activities and therefore demand for oil and gas.”

According to the US Energy Information Administration’s recent Short-Term Energy Outlook, international crude oil benchmark Brent is expected to trade at an average US$108 a barrel in the second quarter of this year and US$102 a barrel on average in the second half of 2022.

“We will continue to concentrate on expanding our existing well intervention and pipe recovery business by training our field engineers to deliver a wider range of downhole well technology solutions for our clients. Over the mid-term, we are looking to venture into the wireline business as this will make us more competitive in the plug and abandonment as well as the decommissioning programmes for both downstream and upstream facilities.”

“We also see more opportunities opening up for the building technical services business as foreign multinational companies (MNCs) investing in Malaysia set up their plants and facilities. We intend to leverage on the synergy from our construction and project management technical services as well as heating, ventilation and air conditioning operation and maintenance services to grow the building technical services business.”

Propel Global also has mid-to-long-term plans to venture into sustainable development and digital technology as part of the Group’s transition to a zero-carbon business focus that includes renewable energy and electrification.

About Propel Global Berhad
Propel Global Berhad is the listing vehicle that will take over the listing of Daya Materials Berhad on 28 April 2022. As part of the Group’s listing, Propel Global will acquire Daya Materials’ oil and gas (“O&G”) and building technical services assets. These O&G assets include services in pipe recovery for drilling operations, downhole data logging and processing as well as chemical blending and supply for both downstream and upstream operations. The building technical services business provides design, engineering, construction, project management and maintenance & management of commercial and industrial buildings and facilities on a single-source platform to a wide range of industrial clients.

For more information, please contact:
Hakim Syed Munif
Tel: +60 12-318 5410
Email: h.juraimi@swanconsultancy.biz

Caely Holdings Berhad announces resignations of two board members

  • Datuk Seri Mazlan Lazim and En. Azri Azerai to leave the board effective 25 April 2022

Caely Holdings BHD, a leading domestic producer of women’s intimate apparel, announced that Independent Non-Executive Chairman, Datuk Seri Mazlan Lazim, and En. Azri Azerai, an Independent Non-Executive Director of the Group, has resigned effective 25 April 2022 from the board of directors.

Azri Azerai

Caely Independent Non-Executive Chairman, Datuk Seri Mazlan Lazim said, “I would like to thank the board for welcoming me and giving me the opportunity to serve the Group. I am honoured to have helmed the board and worked beside my fellow directors. I wish the Group all the best in their future endeavours.”

Independent Non-Executive Director En. Azri Azerai said, “I joined the board of Caely with the intention of assisting in the expansion of the Group’s existing business by giving my perspectives and to help seek opportunities through my network. The recent issues that have cropped up may have affected my ability to further assist the Group and I have made the decision to resign. I would like to express my thanks to the board and wish the Group well in their future undertakings.”

Caely Holdings Bhd: http://www.caelyholdings.com/
Caely Holdings Bhd: 7154 / [BURSA: CAELY] [RIC: CAEY:KL] [BBG: CHB:MK]

G3 Global Berhad and China Partners Remain Committed to Furthering Malaysia’s Digital Economy Blueprint

The parties reiterate their commitment to jointly explore and collaborate on large-scale AI & IT projects in Malaysia

G3 Global Berhad (G3 or the Company), a developer of artificial intelligence (AI) and other information technology (IT) – based solutions for various industries, remains committed to the vision of the Memorandum of Understanding (MoU) with SenseTime Group Ltd (SenseTime) and China Harbour Engineering Company Ltd (CHEC) for the development of an AI Park.

Dirk Quinten, Managing Director

The MoU, which was signed on 26 April 2019, expires today.

Managing Director of G3, Mr. Dirk Quinten, said, “G3 will continue to focus on its AI and other IT-based solutions to grow the business. The parties to the MoU noted that the landscape for the development of the originally anticipated AI Park has changed and that the project may have to take on a new form.”

“G3 as well as SenseTime and CHEC remain keen to work together on large-scale AI & IT projects that are sustainable over the longer term. We have been exploring and discussing concepts that leverage on each other’s strengths and expertise, whilst considering Malaysia’s AI roadmap and strategic position at the same time.”

The Company will make the necessary announcements to Bursa Malaysia Securities Berhad as and when there are further developments on these discussions.

G3 Global: https://g3global.com.my/
G3 Global: 7184 / [BURSA: G3G] [RIC: GLOA:KL] [BBG: G3G:MK]

ACROMETA clinches record $31 million contract for semiconductor industry

  • Record contract win since listing in 2016; places Group on higher platform
  • Contract from renowned Customer in semicon industry; riding expansion wave
  • Well positioned for post-COVID; recently completed R&D/production lab for COVID-19

Catalist-listed AcroMeta Group Limited (ACROMETA; SGX: 43F), today announced that its wholly owned subsidiary AcroMec Engineers Pte Ltd (ACROMEC) has won a $31 million contract for the fit-out of an additional floor within the existing integrated advanced manufacturing facility in Singapore of a leading high-tech customer. When completed in 2023, the expansion will substantially increase its manufacturing capacity.

ACROMEC’s specialties in controlled environment engineering
The ability to succinctly and precisely control physical variables such as temperature, air purity, humidity, and pressure in facility, like the product manufacturing space is a mission critical requirement. ACROMEC is ready to take on this project with the requisite track record, having completed numerous projects in clean rooms, laboratories and advanced manufacturing facilities.

Completion of previously announced project for Nasdaq-listed Genscript Biotech’s Singapore R&D and manufacturing facility
ACROMEC’S strong track record is also seen having, earlier on, successfully completed the prestigious contract for the design and construction of Genscript’s R&D and production laboratory facilities where they are used for the manufacture of the first-in-world C-Pass Serological Test Kit by the Duke University-NUS Medical School collaboration. C-Pass is a game-changing blood testing kit that determine a person’s level of immunity against COVID-19 after vaccination.

Strong outlook for ACROMETA’s controlled environment engineering business
ACROMETA Co-Founder, Chairman and CEO Lim Say Chin is heartened by the sizeable contract win. It reflects well on the high level of confidence that our Customer has on us. He said, “We are optimistic on the growth of our controlled environment business. Our business is well positioned for the Post-COVID world. We are having more customers investing in building facilities again for the future, both to prepare for the next pandemic and to prepare for technological growth. Indeed, we see activities building up in the biotechnology and semiconductor sectors, and we are glad to serve this space.”

The contract is expected to commence soon and will materially contribute positively to the earnings per share and net tangible assets per share of the Group for the financial year ending 30 September 2022.

SGXNET Reference: https://tinyurl.com/SGX-43F-20220422

About AcroMeta Group Limited [SGX: 43F] [RIC: ACRI.SI] [BB: ACRO.SP]
AcroMeta Group Limited (previously AcroMec Limited) is an established specialist engineering services provider with more than 20 years of experience in the field of controlled environments. The Group has over the years acquired expertise in the design and construction of facilities requiring controlled environments such as laboratories, medical and sterile facilities and cleanrooms.

ACROMETA’s business is divided into two main segments: (i) Engineering, procurement, and construction services, specialising in architectural, and mechanical, electrical and process works within controlled environments; and (ii) Maintenance and repair services of facilities and equipment of controlled environments and their supporting infrastructure.

The Group mainly serves the healthcare, biotechnology, pharmaceutical, research and academia, and electronics sectors. ACROMETA counts amongst its customers, hospitals and medical centres, government agencies, research and development companies or agencies, research and development units of multinational corporations, tertiary educational institutions, pharmaceutical companies, semiconductor manufacturing companies, and multinational engineering companies.

The company has been listed on the Catalist board of the SGX since 2016, and became AcroMeta Group Limited (previously AcroMec Limited) on February 18, 2022. For more information, please visit www.acrometa.com.

Media and Analysts Contact:
ACROMETA Group Limited
Mr Jerry Tan
Chief Financial Officer
Tel: +65 6415 0574
Email: jerry.tan@acromec.com

Waterbrooks Consultants Pte Ltd
Mr Wayne Koo
Tel: +65 6958 8008 / +65 9338 8166
Email: wayne.koo@waterbrooks.com.sg
Email: query@waterbrooks.com.sg

This media release has been reviewed by the Company’s sponsor, PrimePartners Corporate Finance Pte. Ltd. (the “Sponsor”). It has not been examined or approved by the Singapore Exchange Securities Trading Limited (the “Exchange”) and the Exchange assumes no responsibility for the contents of this document, including the correctness of any of the statements or opinions made or reports contained in this document.

The contact person for the Sponsor is Mr. Joseph Au, 16 Collyer Quay, #10-00 Income at Raffles, Singapore 049318, sponsorship@ppcf.com.sg.

Myanmar Government to Accelerate Energy Projects and Amid Power Shortages; Says Sanctions End Up Hurting Foreign Investors, Local Workers and Businesses More

The Myanmar Government will accelerate development of hydrocarbon and renewable energy even as it repairs power lines damaged by terrorists while seeking to increase foreign investments despite the threat of fresh economic sanctions, the Ministry of Information (MOI) and Ministry of Investment and Foreign Economic Relations (MIFER) announced today.

MOI Minister Mr Maung Maung Ohn and MIFER Minister Mr Aung Naing Oo issued the joint statement in response to recent media reports about energy shortages in the country and exits of some foreign energy companies, and fresh sanctions against Myanmar announced in recent months.

Addressing Energy Shortages in Myanmar

The recent temporary shortage of power was caused by a surge of global liquefied natural gas (LNG) prices, exacerbated by the Russia-Ukraine conflict, a weaker kyat currency as well as terrorist actions linked to the People’s Defensive Force (PDF). Apart from advocating a boycott of utility payments since 2021, PDF terrorists blew up power lines from the Lawpita hydroelectric plant in Kayah State. These actions contributed to outages which caused hardship to ordinary citizens and small businesses in particular.

However, despite earlier civil unrest, the country has largely achieved national stability since the second half of 2021. Myanmar Government, under the direction of the State Administration Council (SAC) that was formed on 2 February 2021, is focusing efforts on various mitigating actions regarding the country’s energy situation:

i) With the relative stabilization of global energy prices, the Government is seeking to increase use of natural gas for local power generation.
ii) The Government will step up repair of power infrastructure damaged by terrorists and increase security measures.
iii) It will accelerate power generation in the country from oil and gas sources through new investments, partnerships and actions such as conversion to use of existing facilities:

– the new Shwe Gas Pipeline was completed on 18 March 2022 and will generate about 330 MW of regular power.

– Conversion of some fertilizer plants (which use gas as feedstock) for immediate generation of 30 MW of electricity and accelerating works on other gas-fired power generators or waste-heat projects. A total of about 100 MW of electricity has been generated in Kyaukphyu using 20 million cubic feet of gas currently. After pipeline maintenance, this will expand to 30 million cubic feet per day and generate 195 MW.

iv) Major energy projects with China
As its largest neighbour and economic partner, China will play an increasingly important role in energy-related developments in Myanmar.

– With regard to the China-Myanmar pipeline project involving China National Petroleum Corporation (CNPC), the gas pipeline portion was completed at the end of 2013 and the oil pipeline portion was completed in April 2017. The project, which also includes a crude oil terminal, is CNPC’s largest investment in Myanmar, and a centerpiece of China’s Belt and Road Initiative in the country.

– 3 Chinese companies – Union Resources and Engineering Company (41%), Yunnan Energy Investment (39%) and Zhefu Holding Group (1%) – are partnering Myanmar’s -Supreme Group (19%) to develop the 1,390MW Mee Lin Gyaing Project. This facility in Ayeyarwady region involves a LNG-fired power plant, a LNG terminal, a high voltage transmission line and gas pipelines to Yangon. It has been approved by the Myanmar Investment Commission. Currently in the early stages of design and construction, it is expected to start commercial operation in 2027.

Myanmar Government is also proposing to include this high-priority energy project – with an estimated investment value of USD 2.5 billion – in the list of early harvest projects of the China-Myanmar Economic Corridor (CMEC) to enhance bilateral cooperation so as to accelerate its progress.

v) Increase investments in renewable energy
– Solar Energy: More than half of the 40-MW Letpanhla and 30-MW Nyaungbin Gyi solar projects has been completed. To achieve national renewable energy goals, 13 solar power projects which will generate 370 MW have been launched.

While three more solar power projects which will generate 390-megawatt are also planned. Special efforts are being made to promote floating solar projects, rooftop solar projects, and small and medium-sized projects wherever possible.

Tenders are also being called for 18 solar power projects that can generate 635 MW. These are in addition to ongoing negotiations for 11 solar projects which will generate 300 MW that have been invited. Negotiations are underway to sign an agreement for one of them.

– Hydroelectric Power – With more than 60 hydropower dams, hydroelectricity is a key source of energy in the country. The Government is negotiating to purchase about 120 MW of electricity from the Tapin (1) hydropower project soon. The Government will emphasise proper environmental and social impact assessments before approval. Project designs must address such impact and communicate plans and benefits to the relevant communities in order to allay future concerns.

Myanmar plans to achieve national electrification by 2030 and generate 9% of electricity from renewable sources such as hydro and solar power.

Reported Exits of Foreign Oil and Gas Companies
The Ministers said the withdrawal by France’s TotalEnergies from the Yadana field and a related gas transportation project will be effective on 20 July 2022. The former’s 31.24% stake has been allocated proportionately to the remaining partners in the joint venture.

After the withdrawal of TotalEnergies, Thailand’s PTTEP International Limited (PTTEPI) will hold 37.0842% participating interest while Unocal Myanmar Offshore Company Limited, a subsidiary of Chevron Corporation (Chevron) of the United States, will hold 41.1016%, the highest participating interest in the project. Since the first shipment in 1996 about 70% of production from this project, or about 768 million standard cubic feet per day currently, has been sold to Thailand with the rest designated for domestic power generation.

“As this is a change of ownership, operations are not affected. The Yadana field has the largest known Myanmar offshore hydrocarbon reserves. However, production there has declined since end-2021 following 20 years of post-plateau output. Production at this field to date has reached 85% of the recoverable reserves,” the Ministers said. Total Energies is not seeking compensation for the withdrawal.

The Ministers said that while Chevron had stated it would exit investments from Myanmar, the Government has to date not received any formal notification from the company.

A third foreign energy company, Woodside Petroleum Ltd of Australia, has recently withdrawn from A6 Natural Gas Project in Rakhine State. Its stake has been taken over by its project partner the MPRL E&P Group of Companies. Operations are also not affected.

Myanmar’s Energy Sector Remains Attractive
Despite being one of the world’s oldest oil producers (exports started in 1853), Myanmar’s upstream sector is still in its infancy due to sanctions, opaque regulatory policy and insufficient investment.

“Although, proven energy reserves are still relatively modest, unofficial estimates are extremely promising. Such fields with potential which are also in proximity to large demand centres in Thailand and China have attracted the interest of several major players. Hence, the Government continues to speed up its reform and has held a number of successful international bids for such hydrocarbon fields,” the Ministers said.

Response to Fresh Economic Sanctions Against Myanmar
The Ministers said that external pressure and fresh economic sanctions by several Western countries in recent months may have raised concerns among some foreign investors.

“Economic sanctions may have more negative impact on private sectors than on the Government. Domestic and foreign businessmen and their enterprises, local workers, suppliers and consumers end up suffering the most.

Some sizeable projects that had been approved have commenced construction. Due to the economic sanctions, promoters of some of these projects are now facing obstacles in transferring foreign currency. This has affected progress of the projects.

Should these projects be terminated due to sanctions their investors must repay tax exemptions they enjoyed on top of project costs incurred. Otherwise, their investments will remain in the pending state. Hence, investors may end up leaving Myanmar not because of an unfavourable investment environment but because of external pressures.

Myanmar is committed to providing a secure, accessible and conducive investment environment. We do not wish to see investment withdrawals.

Although the international community publicly discourages economic cooperation with Myanmar, we continue to attract foreign investments. Many of our foreign partners choose to work quietly with us, away from the glare of external publicity, fully recognizing Myanmar’s economic potential as well as its unique challenges,” the Ministers said.

Energy Sector Remains Priority For Total Investments
The Ministers also gave an update on investments in Myanmar in the last 2 fiscal years. During fiscal 2020-2021 (12 months ended October) and fiscal 2021-2022 (interim budget of 6 months ended March) a total of 82 projects in 12 sectors with investments totaling USD 4.32 billion were approved (USD 3.79 billion in fiscal 2020-2021 and USD 530.775 million fiscal 2021-2022.)

Manufacturing accounted for most projects among 12 sectors in fiscal 2020-2021. However, the Power sector received substantially higher amount of total approved investment of USD 3.12 billion for 6 projects during this period, underscoring the attractiveness of the sector.

Foreign Investments
Most of the countries investing in Myanmar are Singapore, China, Hong Kong, Thailand and South Korea. In fiscal year 2020-2021, a total of 15 projects were from China, and 14 projects were from Singapore.

In 2021-2022 FY, there are 18 projects from China and 6 were from Hong Kong.

Domestic Investments
In the last 2 fiscal years, a total of 93 domestic investment projects (61 in fiscal 2020-2021 and 32 in fiscal 2021-2022) in 12 sectors valued at 2,248.7 billion kyat (1,171.8 billion kyat in fiscal 2020-2021 and 1,076.9 billion kyat in fiscal 2021-2022, respectively) were approved.

A total of 50 projects were from the Manufacturing sector, which is the leading domestic investment category, followed by the Services sector which recorded 14 approved projects while Hotel and Tourism sector was third with 11 projects.

Issued by Ministry of Information and Ministry of Investment and Foreign Economic Relations, Union Government of Myanmar.
For more information, please contact mediacontact@e-information.gov.mm or myintkyawmoi@gmail.com

Caely Holdings Bhd Working to Unfreeze Bank Accounts

  • Group taking measures to ensure business continuity as livelihoods of employees at stake

Caely Holdings Bhd, a leading domestic producer of women’s intimate apparel, takes note of the order to freeze all the Group’s bank accounts and wishes to reassure all stakeholders that measures are being explored to ensure business continuity and sustainability.

Caely Executive Director and Chief Executive Officer Mr. Lim Chee Pang

Caely Executive Director and Chief Executive Officer Mr. Lim Chee Pang said, “The unfreezing or partial unfreezing of the bank accounts are our top priority. We are exploring all avenues to resolve this issue, as we need to ensure that business operations can sustain.”

“We are answerable to our shareholders for how the business is run. The Board of Directors is monitoring the situation closely too and is working with the management on the unfreezing of the bank accounts.”

“We can confirm that we are in contact with the authorities and will extend whatever cooperation or assistance is needed for the matter to be resolved,” Lim said.

The management is at this juncture still assessing the impact from the order to freeze the bank accounts. “We are working on the next steps, which also include measures to ensure that daily operations are not disrupted. The livelihoods of Caely employees as well as our suppliers and vendors are at stake,” Lim said.

The Group also understands the concerns of stakeholders and is working as speedily as it can to resolve any issue arising from the freezing of the bank accounts and will make the necessary announcements to Bursa Malaysia Securities Berhad as and when there are further developments.

Caely Holdings Bhd: http://www.caelyholdings.com/
Caely Holdings Bhd: 7154 / [BURSA: CAELY] [RIC: CAEY:KL] [BBG: CHB:MK]

Society Pass spins-off Leflair into Leflair Group, appoints Group CEO; to become next Super Distributor Nexus in SEA’s Lifestyle Retail Ecosystem

  • Society Pass Inc (SoPa) has restructured Leflair’s Vietnam operations, spinning-off Leflair Group, an integrated lifestyle retail ecosystem for Southeast Asia’s 100B+ USD retail market.
  • SoPa also announces the appointment of Loic Gautier, Co-founder and Former CEO of Leflair, as Leflair Group CEO, and Ngo Thi Cham, Vietnam Country Head of SOPA, as Leflair Group COO.
  • As CEO of Leflair Group, Loic will be responsible for managing Group P&L, sourcing and acquisitions to enlarge the Leflair ecosystem, expanding across Southeast Asian markets.

Society Pass Inc (SoPa) (NASDAQ: SOPA), a leading Southeast Asian loyalty and ecommerce ecosystem, today announced the completion of restructuring Leflair’s Vietnam operations with the spin-off of Leflair Group (LFGroup). Along with this restructuring, SoPa has appointed Loic Gautier as Chief Executive Officer of the new Leflair Group. Ngo Thi Cham, Vietnam Country Head of SoPa and current Managing Director of Leflair, will become the Leflair Group’s Chief Operating Officer and work alongside Loic in driving the business towards its next stage of growth.

As a result of this corporate restructuring, the Leflair Group is set to become Southeast Asia’s next lifestyle retail super distributor nexus, evolving from a single discounted platform to a lifestyle retail ecosystem, providing shoppers with an integrated and unique shopping experience from online to offline. The Leflair Group will continue to pursue acquisition of companies in the e-commerce, lifestyle retail and online advertising verticals.

Ray Liang, CFO of SoPa Group, commented, “After the IPO of SoPa last year, we have been working on a new strategy for Leflair, in order to maximize its potential as a destination for lifestyle shopping in Southeast Asia. To facilitate this, we are happy to welcome back Loic Gautier as Group CEO, joining our executive team and becoming the driving force of Leflair Group in the future. At SoPa, hiring key talent is among our top priorities, and we always welcome Leflair’s old talents to return, and work with the team to carry Leflair to new heights. Having Loic return as the CEO of Leflair Group ensures continuous and sustainable growth for Leflair in the years to come. The new recruitment also enables us to carry out larger plans for Leflair, evolving from a single online platform to become a true ecosystem for lifestyle shopping.”

Since its IPO on the Nasdaq last year, SoPa has focused on M&A activities to expand the ecosystem with other online platforms across 6 verticals: lifestyle, F&B, travel, digital media, and B2B software and loyalty technology in the top three V.I.P countries of Southeast Asia – Vietnam, Indonesia, Philippines. Through these business lines, SoPa improves the interconnectedness and support within its ecosystem, fulfilling its mission to connect millions of registered consumers with thousands of registered merchants across Southeast Asia.

With this appointment, Loic will be responsible for managing Leflair Group’s growth and expansion strategy to bring the Leflair platform to other Southeast Asian countries, as well as managing future acquisitions to expand the group to other smaller segments within the lifestyle retail industry.

As CEO of the new Leflair Group, Loic said, “It’s an honor to receive SoPa’s trust. With this spin-off, Leflair now has a new medium to maximize its full growth potential. By pivoting from a single platform to an integrated lifestyle retail ecosystem, we seek to connect all players within the lifestyle retail value chain, from brand distributors, to offline stores, ecommerce platforms and delivery companies. The new vision makes Leflair a pioneer in redefining the lifestyle and ecommerce retail market across Southeast Asia.”

According to Loic, Leflair Group is working on ambitious plans for the period ahead, aiming for extensive funding rounds and a roadmap to IPO in the near future. To learn more, please visit websites www.thesocietypass.com and www.leflair.com.

About Society Pass
Society Pass is a leading loyalty and data marketing ecosystem that operates multiple e-commerce and lifestyle platforms across its key markets. Its business model focuses on collecting user data through the expected circulation of its universal loyalty points. It seamlessly connects consumers and merchants across multiple product and service categories fostering organic loyalty. Since its inception, SoPa has amassed over 1.6 million registered consumers and over 5,500 registered merchants/brands on its platform. It has invested 2+ years building proprietary IT architecture with cutting edge components to effectively scale and support its Platform’s consumers, merchants, and acquisitions.

Society Pass provides merchants with #HOTTAB Biz and #HOTTAB POS, a specialized POS technology solution, a comprehensive system for payment, loyal customer management, user profile analytics, and convenient financial support packages for small and medium-sized enterprises. In addition, SoPa operates Leflair.com, Vietnam’s leading lifestyle e-commerce platform, Pushkart.ph, a popular grocery delivery company in Philippines, and Handycart.vn, a leading online restaurant delivery service based in Hanoi, Vietnam. For more information, please visit http://thesocietypass.com.

About Leflair
Based in Ho Chi Minh City, Leflair is an online premium outlet for Fashion, Beauty and Home Furnishing products. Launched in December 2015, Leflair had been selling more than 2,500 brands via its flash-sales model. SOPA acquired Leflair’s assets in February 2021, relaunching the platform in September 2021, and spinning off the Leflair Group in April 2022. For more information, please visit https://leflair.com.

Media Contact
Precious Communications for SoPa
sopa@preciouscomms.com
+65 6303 0567

RTO of LTKM Berhad via the Acquisition of EMS Business for RM336 Million

  • Company to dispose of existing poultry business for RM158.83 million, with proceeds to be distributed to shareholders as special dividend and capital repayment

LTKM Berhad (LTKM), a leading chicken egg producer, today announced a composite proposal, chiefly to divest the Company’s existing business and venture into the business of providing of electronic manufacturing services (EMS) while at the same time, rectify its non-compliance with the public spread requirement of its shares under the listing requirements of Bursa Securities Malaysia Berhad.

Chai Voon Sun, co-founder and Managing Director of Local Assembly [L] and Executive Chairman of LTKM, Datuk Tan Kok
Wee Thian Song – Co-founder, Executive Director and Engineering Director of Local Assembly; Gurmakh Singh – Co-founder, Executive Director and General Manager of Local Assembly; Datuk Seri Chiau Beng Teik – Executive Chairman of Chin Hin Group Berhad; Chai Voon Sun – Co-founder and Managing Director of Local Assembly; Datuk Tan Kok – Executive Chairman of LTKM; Tan Kah Poh, Kenny – Independent Director of LTKM; Rahman Ali Bin Abdul Wahab – Director of Proven Venture Sdn. Bhd. [L-R]

Executive Chairman of LTKM, Datuk Tan Kok said, “At its core, the proposals seek to reward our shareholders from the proceeds of the disposal of the Company’s existing poultry business while at the same time, allow them to continue participating in the new EMS business following the proposals.”

“The proposed disposal comes amid the challenging operating landscape for the poultry industry brought on by overcapacity, low average selling price of eggs, high raw material prices, difficulty in controlling disease outbreaks in the farms and acute labour shortage. In relation to these challenges, we have also incurred losses in the recent financial years ended 31 March 2020 to 2021 and for the nine-month period ended 31 December 2021. This has affected our ability to pay dividends too.”

“Concurrent with the proposed disposals, we believe the proposed acquisition of the EMS business is an opportunity to create value for our shareholders through a business that is viable and profitable.”

Briefly, the proposals comprise the following inter-conditional steps:
1. Proposed disposal of LTKM’s existing business to Ladang Ternakan Kelang Sdn Bhd (LTKSB) for a total cash disposal consideration of RM158.83 million. LTKSB, which holds 71.6% of the equity interest in LTKM, is also the holding company of LTKM;
2. Proposed special dividend and capital repayment of RM1.1098 per LTKM share totalling RM158.83 million on an entitlement date to be determined;
3. Proposed consolidation of two existing LTKM shares into one LTKM share following the proposed special dividend and capital repayment;
4. Proposed acquisition by LTKM, of 100.0% equity interest in Local Assembly Sdn Bhd (Local Assembly) from Chai Voon Sun, Gurmakh Singh a/l Ajmer Singh, Wee Thian Song, Divine Inventions Sdn Bhd and Proven Venture Sdn Bhd (Vendors) for RM336.00 million to be satisfied through cash of RM100.00 million and the issuance of 393,333,333 new LTKM shares at an issue price of RM0.60 each;
5. Proposed restricted issue of 230.00 million new LTKM shares at an indicative issue price of RM0.60 each, representing 33.1% of the enlarged share capital of LTKM after the proposals to investors to be identified;
6. Proposed exemption to the vendors and persons acting in concert from the obligation to undertake a mandatory take-over offer to acquire the remaining LTKM shares not already owned by them upon completion of the proposed acquisition; and
7. Proposed change of name to “LA Technology Berhad” from “LTKM Berhad”.

The proposed acquisition will result in a significant change in LTKM’s business direction from a producer of chicken eggs to becoming an EMS provider. Local Assembly, an EMS provider, will become a wholly-owned subsidiary of LTKM while the vendors of Local Assembly will become LTKM’s controlling shareholders with a 56.6% equity interest in the Company following the proposed acquisition and proposed restricted issue. By virtue of his shareholding in Divine Inventions, Datuk Seri Chiau Beng Teik, the Executive Chairman of Chin Hin Group Berhad, will become a major shareholder of LTKM.

Under the proposed acquisition, the vendors have provided a profit guarantee for Local Assembly of a minimum profit after tax (PAT) of RM28.00 million for the financial year ending 31 December 2022 or not less than an aggregate of RM50.00 million PAT for both financial years ending 31 December 2022 and 2023. Based on the guaranteed PAT of RM28.00 million for the financial year ending 31 December 2022, the purchase consideration represents a price to earnings multiple of 12 times.

For Chai Voon Sun, co-founder and Managing Director of Local Assembly, the listing of Local Assembly via LTKM means a realisation of 2 decades of hardwork for him and his co-founders and a step forward in the company’s journey of growth and expansion. “This transaction is a major milestone for Local Assembly. We look forward to the next phase of our corporate journey as a listed entity, which will further accelerate our growth as an EMS player, allow us to expand our customer base and product offerings and pursue more opportunities” he adds.

Local Assembly, which started operations in 2000, is a manufacturer of electronic, electrical and plastic injection moulded components, and sub-contract assembler of electrical appliances and equipment. Its principal markets are Malaysia and Singapore. For the financial year ended 31 December 2022, Local Assembly achieved PAT of RM20.06 million on the back of a revenue of RM116.35 million.

The application for the proposals is expected to be submitted to the relevant authorities by the second quarter of 2022. Subject to approvals from relevant parties including Securities Commission, Bursa Securities Malaysia Berhad as well as shareholders of LTKM, the proposals are expected to be completed in the first half of 2023.

M & A Securities Sdn Bhd is Adviser to LTKM for the proposals.

LTKM Berhad: https://www.ltkm.com.my/
LTKM Berhad: 7085 / [BURSA: LTKM] [RIC: LTKM:KL] [BBG: LTKM:MK]

Legend Capital’s Portfolio Company Recbio Lists on HKEX Successfully

On 31 March 2022, Legend Capital’s portfolio company Jiangsu Recbio Technology Co., Ltd. (Recbio, HKG: 2179), a leading novel vaccines company, went public on the Hong Kong Stock Exchange. The listing makes Recbio “the first HPV vaccine stock in Hong Kong” and “the first novel adjuvant vaccine stock in Hong Kong”. Recbio is expected to inject new vitality into the capital market in Hong Kong.

Recbio is a novel vaccine company driven by independent novel adjuvant technology. It has built a comprehensive and high-valued vaccine portfolio consisting of 12 candidates, covering cervical cancer, COVID-19, adult tuberculosis, shingles, HFMD, influenza, etc. Recbio is primarily focused on the R&D of HPV vaccine candidates. Its core product REC603, a recombinant HPV 9-valent vaccine, is currently under phase III clinical trial, and is expected to become the first approved domestic HPV 9-valent vaccine in China. In addition, Recbio has also begun to deploy in the mRNA vaccine field and is currently developing the COVID-19 mRNA vaccine.

Recbio has constructed the three core technology platforms consisting of independent novel adjuvants, protein engineering and immunological evaluation. It is one of the few companies capable of independent development of novel adjuvants and the novel adjuvants it developed have been successfully applied in various innovative vaccines such as COVID-19 vaccines, HPV vaccines and shingles vaccines.

Legend Capital led Recbio’s Series B financing in 2020, through a coordinated investment of the comprehensive growth fund and the healthcare fund and re-upped on its Series C financing in 2021, marking Recbio another successful case towards Legend Capital’s multi-fund coordinated investment. As the major institutional investor to Recbio, Legend Capital provides Recbio with multi-faceted support involving corporate governance, business strategy, technical route, R&D resources, management improvement and financial support.

Dr. Liu Yong, the Founder, Chairman of the Board, and General Manager of Recbi, said, “We are much appreciated Legend Capital’s long-term and firm support to Recbio. As the institutional investor with the largest shareholding in the company, Legend Capital’s investment philosophy of ‘Business First, People Crucial’ is highly compatible with our corporate culture. Legend Capital has always supported our management team in major decision-making and continued to assist in the development, becoming one of the most trusted and respected investors of Recbio. The listing is just a new chapter of Recbio, and the management team hopes to work closely with all the investors represented by Legend Capital to write a new legend!”

Hank Zhou, the Co-Chief Investment Officer of Legend Capital, said: “Congratulations to Recbio and its team led by founder Dr. Liu Yong. Liu has been engaged in vaccine research and development for over two decades, with high academic status and extensive experience in the industry. Liu’s team has been deeply involved in the field of vaccine research and development for many years. Its vaccine portfolio strategically aimed at major disease and the team is actively deploying large-scale production. We admire Liu’s great enthusiasm for the vaccine industry and his strong sense of responsibility and commitment. Recbio is now the leading vaccine company in China. After the successful listing, we believe that Recbio will continue to make breakthroughs in its core field of new adjuvant and vaccines to benefit more patients.”

Frank Hong, the Managing Director of Legend Capital, said: “After the outbreak of the pandemic, the vaccine industry has stepped into a high-speed development stage after years of accumulation on technology and talent pool. Recbio is one of the few vaccine companies with high-quality technology platforms, which can continuously produce high-quality vaccine products to meet unmet clinical needs. We are optimistic about Recbio’s future of its core pipelines, including the HPV vaccine, recombinant shingles vaccine REC610 and COVID-19 vaccine. Advanced with its disruptive technology in the field of recombinant protein vaccines, Recbio is expected to be a company with strong competitiveness in the global market.”

Legend Capital has long paid close attention to investments in the field of life sciences. In addition to Recbio, there are other portfolio companies listed on A shares or H shares, including Pharmaron Inc. (300759.SZ; 03759.HK), KingMed Diagnostics (603882.SH), WuXi AppTec(603259.SH; 02359.HK), WuXi Biologics (02269.HK), Innovent Biologics (01801.HK), Berry Genomics (000710.SZ), Harbour BioMed (02142.HK), New Horizon Health (06606.HK), Chemclin Diagnostics (688468.SH), etc.

Electronics Manufacturing Solutions Provider Cnergenz Berhad Enlists UOB Kay Hian Securities as Underwriter for Its Listing Exercise

Company inks underwriting agreement for ACE Market IPO

Cnergenz Berhad (Cnergenz or the Company), an electronics manufacturing solutions provider based in Penang, specialising in surface mount technology (SMT) catering to the electronics and semiconductor industries (E&S Industries), is pleased to announce that the Company has entered into an underwriting agreement with UOB Kay Hian Securities (M) Sdn. Bhd. (UOB Kay Hian) today for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Berhad (Bursa Securities).

UOB Kay Hian Securities Sdn. Bhd Chief Executive Officer Mr. David Lim; Cnergenz Berhad Chief Executive Officer Mr. Lye Yhin Choy [L-R]

The Company had obtained approval to list on the ACE Market of Bursa Securities and is targeting to launch its Prospectus in April 2022.

The IPO exercise involves the public issue of 100.0 million issue shares and an offer for sale of 50.0 million offer shares by way of private placement.

From the public issue, 25.0 million issue shares will be made available for application to the Malaysian public, 10.0 million shares will be allocated for application by eligible directors and employees as well as persons who have contributed to the success of Cnergenz Group (“Group”) (“Eligible Persons”), 52.75 million shares will be reserved for private placement to identified investors and 12.25 million shares will be reserved for private placement to identified Bumiputera investors approved by the Ministry of International Trade and Industry (“MITI”).

UOB Kay Hian will underwrite an aggregate of 35.0 million issue shares, comprising 25.0 million shares under the public issue and 10.0 million shares allocated to Eligible Persons as part of the underwriting agreement.

Chief Executive Officer of Cnergenz, Mr. Lye Yhin Choy, said, “This listing will enable us to strengthen our name as a leading electronics manufacturing solutions provider in Malaysia whilst deepening our presence in Thailand and Vietnam, countries which are benefitting from strong investment flows into the E&S Industries.”

Chief Executive Officer of UOB Kay Hian, Mr. David Lim said, “UOB Kay Hian is pleased to be working with Cnergenz on its IPO exercise. The Company has a stellar track record and experience in the E&S Industries that dates back to 2004. We are happy to work with Cnergenz in achieving its listing goals.”

Cnergenz collaborates closely with its network of over 50 suppliers to offer quality solutions for their customers, building a strong network and contributing to Cnergenz’ business development and growth.

Cnergenz caters to domestic and international customers across Malaysia, Vietnam and Thailand. Cnergenz has a customer base of over 100 local and multinational companies operating within the E&S Industries, comprising integrated design manufacturers (IDMs), outsourced semiconductor assembly and test service providers (OSATs) and electronics manufacturing service providers (EMSs), some of which have been customers of Cnergenz for over 15 years.

Cnergenz Berhad: https://cnergenz.com/