TMR

KUMPULAN Perangsang Selangor Bhd said its 51%-owned subsidiary, Aqua-Flo Sdn Bhd, has entered into two framework agreements with Pengurusan Air Selangor Sdn Bhd for the supply and delivery of water treatment chemicals over a three-year period from Jan 1, 2026 to Dec 31, 2028.

KPS said the contracts, with a combined estimated value of RM53.05 million, comprise the supply of pH adjusters under the Group B contract worth RM31.87 million, and the supply of polyelectrolytes or water-soluble polymers under the Group D contract worth RM21.19 million.

The company said the contract prices will remain fixed throughout the duration of the agreements and will not be subject to fluctuations in raw material, labour or transport costs.

Aqua-Flo is required to furnish a performance bond equivalent to 5% of the contract sum, which will remain valid for the entire contract period.

KPS said both contracts are regarded as recurrent related party transactions as they involve Air Selangor and entities linked to Menteri Besar Selangor Inc (MBI), which is a major shareholder of KPS.

It noted that the agreements were entered into in the ordinary course of business and on an arm’s length basis.

According to KPS, the contracts are expected to contribute positively to the group’s earnings and net assets over the contract period.

KPS said its non-independent non-executive chairman Datuk Dr Ahmad Fadzli Ahmad Tajuddin and non-independent non-ED Datuk Saipolyazan Mat Yusop are deemed interested in the transactions as they hold positions in MBI, Air Selangor Holdings Bhd and other related entities.

Both directors have abstained from all deliberations and voting on the matter.

The group’s audit committee and board of directors, excluding the interested directors, said the contracts are in the best interest of KPS, fair and reasonable, on normal commercial terms, and not detrimental to the interests of minority shareholders.

KPS added that the agreements do not require shareholder or regulatory approval. — TMR

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IOI Corp Bhd has teamed up with Singapore-based Mega Star Holding Pte Ltd to develop Malaysia’s first integrated and sustainable coconut mill complex in Segamat, Johor, with an estimated investment of RM100 million.

Mega Star, affiliated with China’s Ting Hsin International Group, brings extensive food and beverage market access across China and Taiwan.

The joint venture aims to combine IOI’s global expertise in the edible oil sector with Mega Star’s distribution network to expand their coconut-based product portfolio.

Under the partnership, IOI will offtake and market coconut oil to its associate companies and customers in the European Union and the US, while Mega Star will handle the marketing of concentrated coconut water in China and Northeast Asia.

Scheduled for completion in the fourth quarter of 2027, the Segamat complex will initially process 100,000 coconuts per day, with plans to scale up to 300,000 coconuts daily as IOI’s plantations mature and expand to about 5,000 hectares.

Located near IOI’s Johor plantation landbank and the Inland Port of Segamat, the site will benefit from efficient raw material supply and logistics.

The high-tech complex will employ robotic and IR 4.0 processing systems, alongside a self-generating bioenergy system using coconut husks as fuel.

IOI also plans to convert coconut shells into activated carbon, reinforcing its circular economy strategy.

IOI group MD and CEO Datuk Lee Yeow Chor said the venture marks a “significant milestone” in diversifying into the coconut segment.

“By combining IOI’s operational excellence and access to the international edible oil market with Mega Star’s strong market access to the food and beverage sector in China, we aim to deliver high-quality and sustainable coconut products to meet growing market demand,” he said.

Mega Star executive director CM Wei said the collaboration underscores both parties’ shared commitment to innovation and sustainability.

“Through this collaboration, we demonstrate our shared commitment to driving innovation and building a green and sustainable value chain,” he said. — TMR

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ANN JOO Resources Bhd has accepted a conditional letter of offer from Axis REIT Managers Bhd, on behalf of RHB Trustees Bhd — the trustee for Axis Real Estate Investment Trust (Axis-REIT) — for the proposed disposal and leaseback of its industrial land and buildings in Prai, Penang, for an indicative cash consideration of RM800 million.

In a bourse filing, Ann Joo said its wholly-owned unit, Ann Joo Steel Bhd (AJSB), will dispose of 135.53 acres of freehold industrial land, comprising Land A (94.21 acres) and Land B (41.32 acres), together with the buildings thereon.

The land forms part of a 200.55-acre master title in Bandar Prai.

Following the disposal, AJSB will lease back the properties from Axis-REIT for a fixed term of eight years for Land A and five years for Land B.

The monthly rental for Land A will start at RM2.89 million for the first six years, decreasing to RM2.17 million in year seven and RM1.45 million in year eight, while Land B will carry a monthly rental of RM1.27 million throughout the five-year term.

Under the leaseback arrangement, AJSB will bear all quit rent, assessment rates, fire insurance, maintenance charges, and utilities for the duration of the lease.

The disposal price, equivalent to RM135.51 per sq ft, is subject to adjustments based on final land surveys and an independent valuation to be obtained prior to the signing of the sale and purchase agreement (SPA).

Ann Joo said the parties will enter into definitive agreements comprising the SPA and the lease agreement once relevant conditions are met.

The transaction will require approval from Ann Joo’s shareholders and other regulatory authorities. — TMR

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MAIN-Market listed KUB Malaysia Bhd has changed its name to JAG Capital Bhd, effective Nov 3.

The company has received the notice of registration of the new name pursuant to Section 28 of the Companies Act 2016 issued by the Companies Commission of Malaysia, it said in an exchange filing.

The proposed change of name was first announced to the stock exchange on Sept 18.

The company’s shares will be traded and quoted under Jag Capital, with its new stock short name of JAGCPTL, with effect from Nov 10.

The company’s stock codes remain unchanged, it added.

The shares closed at 90 sen on Wednesday, valuing the company at RM493 million. Its 52-week high/low was RM1.18/54 sen. — TMR

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NEWLY delisted KNM Group Bhd said it has received overwhelming shareholder support for the proposed sale of Deutsche KNM GmbH (DKNM) to NGK Insulators Ltd of Japan, describing it as a ‘pivotal milestone’ in KNM’s turnaround and recovery journey.

A total of 93.74% of shareholders voted in favour of the resolution at its extraordinary general meeting (EGM) today, the company said in a statement.
 
The approval paves the way for KNM to move forward with the disposal of DKNM for €270 million (about RM1.3 billion) — a transaction that will significantly strengthen the group’s balance sheet by reducing its debt obligations and providing the necessary working capital to revitalise its Malaysian operations, it added.

KNM CEO Ravindrasingham Balasingham the company had invited the Minority Shareholders Watch Group (MSWG) to directly engage with minority shareholders present at the meeting.

MSWG observed the entire session and raised questions, all of which were addressed comprehensively by KNM’s board and management, according to the statement.

“They raised the issue of absence of an independent advise letter,” Ravi told The Malaysian Reserve when contacted after the meeting.

KNM is fresh out of a tussle with the local stock exchange. It was delisted from the Bursa Malaysia Securities, effective Nov 5, after failing to work its way out of the Practice Note 17 (PN17) status.

MAA Group Bhd (MAAG), which owns close to one-fifth of ailing KNM Group Bhd, had urged shareholders to support the sale of its German-based crown jewel as a way out of its financial predicament.

“”MAAG called this KNM’s EGM under 313 of Companies Act 2016. MAAG could not prepare a circular or an independent advise letter without getting access to inside information from KNM, which would be breaking other laws. So they produced a statement with 1,000 words as permitted by s323 of the Companies Act, based on publicly available information relevant to the resolution,’ he told The Malaysian Reserve.

In the same statement, Yaacob said closing the disposal of DKNM to NGK is a big step towards the turnaround of KNM Group, describing the shareholder support as the ‘last outstanding condition precedent which is ‘key to sealing this deal’. — TMR

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