In today’s edition of Evening 5 — IJM Corp acquires a 44.8% stake in Pestech International for RM124 million, marking its entry into the energy transmission sector. Meanwhile, TM clarifies that its recent voluntary separation scheme was open to all employees aged 50 and above.
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00:00 [Music]
00:04 IJM Corporation is acquiring a 44.8% stake in Pestec International for RM124 million,
00:12 marking its entry into the rapidly growing energy transmission sector
00:16 as it seeks to expand its business into an adjacent vertical
00:20 since its divestment of IJM Plantations in 2021.
00:24 The two companies inked a conditional agreement
00:27 for the subscription of 800 million Pestec shares at 15.5 cent per share.
00:32 In a statement, IJM said the investment in Pestec presents a synergistic opportunity for it
00:38 to acquire a strategic stake in a listed company with core businesses
00:42 in high-voltage electrical transmission as well as rail electrification and signaling.
00:48 Among others, the partnership opens the possibility of Pestec gaining access
00:52 to more engineering, procurement, construction and commissioning jobs,
00:56 while offering IJM access to Pestec's transmission line projects in Cambodia.
01:01 IJM said it does not intend to make a mandatory takeover offer
01:05 for the remaining Pestec shares and warrants,
01:07 and will seek an exemption from the Securities Commission
01:10 after Pestec obtains its shareholders' approval for the deal.
01:14 Meanwhile, Pestec said the transaction, which should be completed in the last quarter of this year,
01:20 is expected to enhance its financial position going forward.
01:24 The company had a rough start to the year, as it saw its key executives charged by the MACC in January,
01:30 then the termination of its job as a subcontractor for the Gemas Johor Bahru
01:34 electrified double-track project in May, and its legal tussle with Syarikat Pembinaan Yotiong Leh.
01:40 Telekom Malaysia, or TM, said its recent voluntary separation scheme was open to all employees
01:52 aged 50 and above. The telco said the initiative has received positive feedback from its employees,
01:59 as it offers an option for early retirement or the opportunity to transition to a different
02:04 career path. It clarified that the scheme was done on an entirely voluntary basis,
02:10 and engagements took place with unions and potential participants
02:14 to ensure transparency and mutual understanding.
02:17 Earlier today, a local news portal reported that TM had offered two voluntary separation schemes
02:23 to its non-executive employees aged 50 and above as a move to trim its workforce.
02:29 According to offer documents cited by the portal, the two schemes are called MESRA for those aged
02:35 55 to 58, and a voluntary separation plan for those aged 50 to 54. TM's shares closed 1.4%
02:44 higher at RM5, valuing it at RM19.1 billion.
02:48 The KL High Court has ordered TH Heavy Engineering, or THHE, to pay US$63.42 million,
03:00 or RM288.72 million, to its joint venture partner Global Mariner Offshore Services.
03:07 This is for damages Global Mariner claimed it suffered as a result of THHE's refusal to honour
03:14 a shareholder's agreement between them to transfer its 80% stake in Labuan-based FloTek to Global
03:20 Mariner following THHE's default of its loans. Global Mariner holds the remaining 20% in FloTek.
03:27 THHE was also ordered to pay RM1.9 million as costs, including RM800,000 to Global Mariner.
03:35 The verdict was delivered last Friday by Judge Adeline Abdul Majid,
03:39 who allowed Global Mariner's claim against THHE. She also dismissed THHE's counterclaim that its
03:46 financial position was made worse by Global Mariner's failure to carry out its obligations
03:51 as a shareholder in FloTek, and that Global Mariner had misrepresented the viability of
03:56 the acquisition of FPSODP1 when it recommended that FloTek purchase the vessel.
04:08 Electronics manufacturing service provider Betamac bagged a RM436.5 million job to supply
04:15 parts for Perodua's new car model. In a statement today, Betamac said the supply of the parts is
04:21 expected to commence in the final quarter of FY2025. The contract, which is for a duration
04:27 of six years, is expected to contribute positively to the group's revenue and earnings for FY2025
04:34 and throughout the project's period. Betamac MD Mirza Mahathir said demand for the group's vehicle
04:40 audio-visual products and accessories is expected to grow in tandem with expanding appetite for its
04:46 major customers' vehicles. According to Betamac, Perodua recently announced that it is on track
04:52 to meet its 330,000 production and 314,000 registration targets this year. As at end June,
05:00 Perodua had produced 153,813 vehicles, up 17% from 131,441 units a year earlier. At the close,
05:12 shares in Betamac finished up 7.3% at 51.5 cent each, valuing the group at RM231.75 million.
05:26 The MACC has denied claims made by Datuk Justin Lim Huatat that the Antigraft Agency did not
05:32 issue a notice to the Sersel CEO about requiring his assistance in an investigation. In a statement,
05:39 the MACC said it had tried to track Lim down by visiting two homes and an office in Kuala
05:44 Lumpur and another office in Johor on June 26 to issue the notice, but Lim was not at any of
05:51 these locations. The agency found that one of the two homes was already sold and Lim was not
05:57 residing in the other property. Exit checks with the Immigration Department show that Lim left the
06:02 country in February this year and there were no records of his return to the country. As at
06:08 following this, it issued a press statement on July 12, complete with the investigating officer's
06:13 telephone number and email address to track Lim down, and that statement serves as a formal and
06:19 valid notice. The MACC added it is ready to face any legal action from Lim regarding the matter,
06:26 but stressed that he must first come forward to cooperate with the investigation.