Business

BINA Puri Holdings Bhd has secured approval in principle from lenders representing at least 75% of its debt value for its proposed restructuring scheme (PRS), following mediation by the Corporate Debt Restructuring Committee.

The approval makes the restructuring terms binding on all participating lenders under the CDRC Code of Conduct. The group’s scheme meeting is scheduled for June 30 for creditors to consider and vote on the proposed scheme of arrangement.

Earlier this year, Bina Puri obtained a six-month extension of its debt standstill until Aug 6 to finalise the restructuring plan. –TMR

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YLI Holdings Bhd has entered into a joint development agreement through its wholly owned subsidiary Yew Lean Industries Sdn Bhd to develop a 10.963-acre parcel in Bandar Puncak Alam, Selangor, with a landowner entitlement of RM28 million.

Under the agreement, the landowner Puncak Alam Housing Sdn Bhd will contribute the land while the developer will hold exclusive rights to undertake the project, which is located along Persiaran Puncak Alam 3 in Ijok, Kuala Selangor.

The landowner’s entitlement will be paid in staged tranches over a 36-month period, or within three months after issuance of the certificate of completion and compliance, whichever is later.

The vacant leasehold land, expiring in 2109, has been independently valued at RM28 million based on a comparison approach, and the project is expected to be funded via internally generated funds.

YLI said the proposed development allows the group to diversify into property development without an outright land acquisition, while optimising capital deployment and enhancing long-term earnings visibility.

The group added that the project is expected to contribute positively to future earnings, net assets and cash flows, supported by the growth of Bandar Puncak Alam and strong connectivity to major Klang Valley highways.

The project is expected to be completed within approximately 36 months from commencement, subject to approvals from relevant authorities. –TMR

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FAVELLE Favco Bhd has been named in a US$25 million (RM101.64 million) lawsuit filed in the Supreme Court of the State of New York over a crane-related incident in July 2023, according to a Bursa Malaysia filing.

The summons, received on June 24, 2026, was served at its wholly owned US subsidiary Favelle Favco Cranes (USA) Inc and also names several other defendants.

The plaintiff, Justin Santiago, is seeking damages for alleged injuries and losses arising from the incident.

Favelle Favco said its role was limited to supplying the crane and that it neither owned, operated nor maintained the equipment at the time of the incident.

The group added that an independent investigation report did not attribute any fault to the manufacturer.

The company said it believes it has strong grounds to defend the claim, has notified its insurer, and will vigorously contest the proceedings.

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PMW International Bhd has secured an RM11.84 million contract to supply pre-stressed spun concrete poles for the Point of Presence Phase 2 (POP2) fibre infrastructure project, strengthening its foothold in Malaysia’s digital connectivity rollout.

In a statement today, the group said its wholly owned unit PMW Marketing Sdn Bhd had signed the supply and delivery agreement with Global Technological Support Sdn Bhd, with the contract running until Oct 31, 2026.

PMW said the job is expected to contribute positively to its earnings for the financial year ending Dec 31, 2026.

The latest win extends PMW’s participation in the nationwide POP programme, after its Phase 1 involvement covering Kedah, Perak, Johor, Negeri Sembilan and Melaka.

Its CEO Lee Hon Hwa said the contract reinforces PMW’s role in supporting Malaysia’s telecommunications and digital infrastructure expansion.

He noted that the contract follows closely on the heels of a RM11.92 million spun pile supply order secured in May, underscoring growing demand for the group’s infrastructure products across both telecommunications and transportation sectors.

The POP2 project forms part of the government’s Digital Framework 2030, with RM3.9 billion allocated to develop 3,693 points of presence nationwide to expand high-speed broadband coverage. — TMR

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SHARES of ACE Market-listed Silver Ridge Holdings Bhd sank 24.32% today to a record low of 14 sen, triggering an unusual market activity (UMA) query from Bursa Malaysia after the abrupt resignation of three executive directors representing two of its largest shareholders.

The stock hit an intraday low of 13.5 sen, down 27% from its opening price of 18 sen, before closing the session at 14 sen.

A total of 27.18 million shares changed hands, nearly three times its four-week average volume of 9.4 million shares, making it among the most actively traded counters on Bursa.

The sharp decline erased more than half of the stock’s value year-to-date, with its market capitalisation shrinking to RM57 million.

In response to Bursa’s UMA query, Silver Ridge said it was not aware of any undisclosed corporate developments, rumours or other possible explanations for the sell-off, apart from the resignations announced on June 26.

Last Friday, the telecommunications solutions provider said group MD Khoo Yik Chou, deputy group MD Syauqat Mohd Suhaimi and ED Syakur Mohd Suhaimi had stepped down as part of succession planning and a leadership transition.

The company has yet to announce replacements, deepening investor concern over a sudden management vacuum.

Khoo remains Silver Ridge’s largest shareholder with a 17.223% direct stake and a 2.158% indirect stake, while Syauqat and Syakur are substantial shareholders through their father, Mohd Suhaimi Abdullah, who owns a 6.919% direct interest.

The outgoing directors said in separate filings that they had no disagreement with the board and no matters requiring shareholders’ attention. — TMR

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HIBISCUS Petroleum Bhd has officially launched the start-up of its Low-Pressure Compressor (LPC) project in Brunei, marking a key milestone in sustaining production at the Maharajalela Jamalulalam field under Block B.

The project, which began operations in April and was officially launched on June 4 at the onshore processing plant in Lumut, is notable for several industry firsts, including the world’s first water-saturated Integrated Compressor Line (ICL) compressor and Asia’s first operational ICL compressor.

Once linked to a planned 12MW solar farm, it is also expected to become the world’s first solar-powered ICL compressor.

Hibiscus said the project strengthens production sustainability, improves asset reliability and supports lower-emission operations, while contributing two million manhours without lost-time injury incidents – extending Hibiscus EP (Brunei)’s 27-year LTI-free record.

Hibiscus MD Kenneth Pereira said the project had already shown positive production gains since start-up.

“The successful delivery of the LPC project demonstrates Hibiscus Petroleum’s ability to unlock greater value from existing resources,” he said, adding that the gains are expected to contribute positively to the group’s fourth-quarter FY2026 financial and operational performance. — TMR

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An initial assessment finds the proposed share price falls below the company’s underlying value 

by RUPINDER SINGH 

SEALINK International Bhd has escalated its pushback against Carimin Petroleum Bhd’s privatisation proposal, requesting an upward revision to the 41 sen per share offer after concluding that the valuation does not adequately reflect its asset base and financial performance. 

The development marks a clear intensification in negotiations following Carimin Petroleum’s May 12 proposal to privatise Sealink International via a members’ scheme of arrangement in a cash deal valued at about RM165 million. 

Under the proposal, Carimin Petroleum which already holds a 19.5% stake or 97.5 million shares plans to acquire the remaining 80.5% stake, or 402.5 million shares, at 41 sen each. 

From Extension Request to Valuation Challenge

The latest push for a higher price follows earlier signs that Sealink International’s board required additional time to assess the offer. 

On May 20, the company requested a 60-day extension from the original May 26 deadline to consider Carimin Petroleum’s proposal, stating that the additional time was necessary for proper evaluation. 

At that stage, Carimin Petro- leum said its offer represented a 20.6% premium to Sealink International’s last traded price of 34 sen prior to the announcement. 

It also indicated that even if the privatisation did not proceed, it intended to increase its stake in 

Sealink International to as much as 32.5% at a maximum price of 41 sen, subject to takeover rules. 

In its latest filing, Sealink International said the board, excluding executive chairman Lo Ling, ED Lim Yew Hoe, and independent non-ED Lim Litt, had formally written to Carimin Petroleum seeking a higher offer price. 

The board’s position was based on a preliminary desktop valuation of Sealink International’s material assets, which it said indicated the 41 sen offer does not fully reflect the group’s underlying value. 

However, Lim Litt objected to the timing of the request for a higher price, arguing that the board should first obtain the independent adviser’s opinion before engaging Carimin Petroleum on valuation matters. 

Sealink International added that it has yet to reach a final decision on the proposal and will continue evaluating the offer, including any response from Carimin Petroleum as well as the independent advisor’s recommendation. 

Valuation Support from Fundamentals

As at end-March, Sealink International’s net asset value stood at 45.44 sen per share, above the offer price. The group was also in a net cash position of RM11.36 million, with RM42.57 million in cash against RM31.21 million in borrowings. 

These metrics have strengthened the board’s position that the current offer may undervalue the company’s underlying assets. 

Sealink International has appointed NewParadigm Securities Sdn Bhd as independent advisor to evaluate the scheme of arrangement, while Affin Hwang Investment Bank Bhd is acting as principal advisor. The independent advisor will assess the equity value of the scheme shares based on earnings and asset-based methodologies. 

The board said its final recommendation will be made after comparing Carimin Petroleum’s offer against the independent advisor’s valuation. 

Carimin Acknowledges Request

Meanwhile, Carimin Petroleum has confirmed it received Sealink International’s letter requesting a revision of the offer price and said further announcements will be made in due course. 

The proposed privatisation remains subject to approvals and shareholder consideration, with the outcome likely to hinge on whether Carimin Petroleum is willing to lift its offer in response to Sealink International’s valuation gap argument. 

The transaction, if completed, will result in Sealink International becoming a wholly owned subsidiary of Carimin Petroleum and subsequently delisted from Bursa Malaysia. 

• This article first appeared in The Malaysian Reserve weekly print edition 

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CIMB Securities Sdn Bhd has resumed coverage on Axiata Group Bhd with a ‘Buy’ call and a lower sum-of-parts target price (TP) of RM2.55, citing strong earnings growth prospects and potential asset monetisation as key catalysts. 

The research house forecasts Axiata’s core net profit to surge 46% year-on-year (YoY) in financial year 2026 (FY26), driven mainly by stronger contributions from its Indonesian unit XLSmart and associate CelcomDigi Bhd, underpinned by merger synergies. 

Earnings are expected to continue expanding by 18% to 21% annually in FY27 and FY28. 

CIMB Securities said Axiata’s dividend outlook remains attractive, with yields projected at 5.6% to 6.6% over FY26 to FY28, based on management’s target to increase dividend per share by at least 10% annually to between 11 sen and 13 sen. 

It noted that potential monetisation of Axiata’s infrastructure assets, particularly tower unit E dotco Group Sdn Bhd, could further strengthen the group’s balance sheet and improve dividend-paying capacity. 

“On a business-as-usual basis, we foresee a strong core net profit growth outlook for Axiata,” CIMB Securities said in a note last week. 

The brokerage said Edotco’s monetisation remains on track for completion this year, although it now assigns a lower valuation multiple of seven times enterprise value to EBITDA, compared with eight times previously, reflecting weaker frontier market tower valuations. 

Based on this, CIMB Securities estimates Axiata could receive RM4.3 billion in cash, equivalent to 47 sen per share, from a potential sale. 

This could reduce Axiata’s net debt-to-EBITDA ratio to 0.9 times by end-FY26, from 2.5 times currently. 

If the group maintains a post-sale net debt-to-EBITDA target of two times, it could unlock up to RM3.9 billion in additional debt headroom for fresh investments or higher shareholder returns, CIMB Securities said. 

The brokerage added that Axiata’s planned FY26-FY28 dividends are “firmly supported” by operating company dividend inflows and deferred cash proceeds from the XLS merger and the sale of Ncell. 

It also estimated that an Edotco sale and lower debt levels could raise Axiata’s annual dividend- paying capacity by an additional one sen per share. — TMR 

• This article first appeared in The Malaysian Reserve weekly print edition 

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MAIN Market-listed XL Holdings Bhd (XLH) has proposed a private placement of up to 10% of its total issued shares to independent third-party investors, aiming to raise up to RM42.95 million. 

The exercise is intended to fund the group’s aggressive expansion into the retail and wholesale grocery segment under the Giant Mini brand. 

The fundraising follows XLH’s strategic pivot into grocery retail, it said in a filing with Bursa Malaysia. 

The group was previously anchored in edible foods such as ready-to-serve meals, fish farming, ornamental fish merchandise, pineapple cultivation, and edible bird’s nest trading, before announcing its diversification into grocery retail on May 25. 

The strategy accelerated after its wholly owned subsidiary XL Retail Sdn Bhd, formerly known as XL Farming, completed the RM15 million acquisition of 34 Giant Mini outlets across the Klang Valley from Jutaria Gemilang Sdn Bhd on May 31. 

XLH intends to channel 70% of gross proceeds into the grocery segment. 

XLH plans to allocate 70% of gross proceeds from the placement to the grocery segment. 

Under the maximum scenario of RM42.95 million raised, RM30.07 million will be channelled into expanding the business, assuming full exercise of 159.11 million Warrants B at an exercise price of 53 sen and resale of 532,000 treasury shares. 

Of this RM30.07 million allocation, RM10.52 million will be used to establish new Giant Mini outlets and another RM10.52 million will be directed towards inventory, including fresh produce and fast-moving consumer goods. 

A further RM4.51 million will be allocated for refurbishment of the existing 34 outlets, RM3.01 million for the setup of a Klang Valley warehouse, and RM1.5 million for machinery and equipment such as IT systems and forklifts. 

XLH intends to open 20 new Giant Mini outlets across the Klang Valley between the fourth quarter of 2026 (4Q26) and 4Q27. 

Refurbishment works on the existing outlets, covering upgrades to lighting, flooring, structures and cash counters, will begin in 4Q26 and are expected to be completed by 3Q27. 

To support its expanded supply chain, the group has identified a warehouse in Kota Damansara, Selangor for acquisition at an estimated RM15 million, to be funded via bank borrowings. 

A portion of the place- ment proceeds, amounting to RM3.01 million, will be used to equip the facility with racking systems, flooring and electrical infrastructure. 

The remaining proceeds will be deployed for working capital requirements including procurement, supplier payments and administrative expenses, as well as corporate expenses of RM120,000. 

Based on an illustrative issue price of 65 sen per share, representing a 9% discount to XLH’s five-day volume-weighted average price of 71.43 sen as at June 12, the group’s capital structure will expand significantly under the maximum scenario. 

Shares in issue will rise to 726.85 million, increasing share capital to RM369.39 million. 

Substantial shareholder and executive chairman Ng Min Lin’s direct stake will be diluted from 27.90% to 25.36%. 

Assuming full exercise of his 67.97 million Warrants B, his post-placement stake will stand at 28.59%. 

Net asset per share is expected to improve slightly from 47 sen to 50 sen, while gearing is projected to remain negligible at below 0.01 times. 

While the placement is expected to dilute earnings per share in the near term, XLH expects the integration of its retail network to generate operating synergies. 

The Giant Mini outlets are expected to serve as direct distribution channels for its ready-to-serve meals and pineapple-based products, enhancing margins and strengthening recurring revenue visibility. 

The expansion comes amid a recovery in Malaysia’s consumer sector, with retail trade reaching RM71 billion in April 2026, representing a 6.3% year-on-year (YoY) increase driven by non-specialised stores, mini-marts and convenience retail formats. 

XLH also enters this expansion phase with stronger financial performance, having recorded a 54.7% increase in revenue to RM109.1 million and a 50.4% rise in profit before tax to RM10.4 million for the financial year ended April 30, 2025 (FY265). 

Subject to regulatory approvals, applications are expected to be submitted within a month, with completion of the private placement targeted for 3Q26. — TMR 

• This article first appeared in The Malaysian Reserve weekly print edition 

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