In today’s edition of Evening 5 — Boustead Heavy Industries Corp says more time is needed for the planned disposal of its Boustead Naval Shipyard stake to MoF.
Meanwhile, Astro Malaysia’s shares fall to all-time low as overcast clouds loom over its dividend outlook.
Meanwhile, Astro Malaysia’s shares fall to all-time low as overcast clouds loom over its dividend outlook.
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NewsTranscript
00:00 [Music]
00:04 Bowstad Heavy Industries Corporate, BHIC, says its planned disposal of a 20.77% stake
00:11 in troubled Bowstad Naval Shipyard to MOF Inc has been extended by 21 business days,
00:17 as the parties involved required more time to fulfil conditions precedent to the RM1 deal.
00:23 This after the expiry of the conditional period yesterday.
00:26 The deal is part of Putrajaya's plan to take over the RM9.13 billion littoral combat ship project
00:33 that the shipbuilder failed to deliver on time.
00:36 According to BHIC's past disclosures, there are four conditions precedent,
00:41 including execution of a conditional intercompany trade receivables reorganisation agreement
00:47 to be entered into between BHIC and its naval shipbuilding business.
00:51 The agreement was meant for the repayment of RM383.94 million
00:57 or such other sum owed by Bowstad Naval Shipyard.
01:00 BHIC's equity interests aside, Bowstad Holdings holds a direct stake of 68.85%
01:07 in Bowstad Naval Shipyard, while Lembaga Tabung Angkatan Tenterah owns 10.38%.
01:12 Shares of BHIC closed 3.85% lower to 50 cent,
01:17 giving it a market capitalisation of RM124.23 million.
01:22 Unit holders of KIP REIT voted in favour of a proposal
01:32 to acquire KIP Mall Kota Warisan in Sepang for RM80 million.
01:36 According to its filing to Borsa Malaysia, the resolution was duly passed at its EGM
01:42 after 87 unit holders who collectively hold 226.64 million units in the REIT,
01:49 which represent 99.98% of voting units, gave the green light for the acquisition.
01:55 KIP Mall Kota Warisan houses a one-and-a-half storey retail centre
02:00 with a net lettable area of approximately 17,300 square metres
02:05 on a freehold land in Dengkil, Sepang in Selangor.
02:09 Shareholders also approved the proposed private placement of up to 12.27 million new units in KIP
02:15 REIT to raise RM10 million at an issue price to be determined later.
02:20 This proposed placement will partially fund the acquisition.
02:24 KIP REIT CEO Valerie Ong Pui Shan said it is on track to complete the proposed
02:29 acquisition by the first quarter of 2024.
02:33 KIP REIT units rose 0.56% higher to 89.5 cent.
02:38 Valuing it at RM539.64 million.
02:42 Former Prime Minister Tan Sri Muhyiddin Yassin cited his successful application to strike out
02:53 his abuse of power charges as grounds to set aside his three money laundering charges.
02:59 In the application, the Pagoh MP also sought to be granted a discharge not amounting to a quidtal.
03:05 Last month, the Kuala Lumpur High Court discharged him from the predicate offence of abuse of power
03:10 as the charges did not disclose any offence committed and were made without basis.
03:15 Muhyiddin is arguing that his money laundering charges are similarly baseless
03:19 and should also be struck out on the same grounds.
03:22 The Bersatu President is accused of receiving from Bukhari Equity RM200 million,
03:27 which was placed in the party's bank account.
03:30 The Sessions Court will hear the application on November 29.
03:34 Meanwhile, the prosecution is appealing against Muhyiddin's acquittal on the abuse of power charges,
03:40 with a hearing fixed for next February.
03:42 It also wants a stay of proceedings at the Sessions Court pending the decision of the Court of Appeal.
03:48 Astro Malaysia Holdings saw its share price continue heading south,
03:58 hitting an all-time low of 40 cent a week after the release of its quarterly earnings,
04:03 which missed consensus estimates.
04:05 The stock has plunged 61.2% from last year's peak of RM1.3 in end March.
04:11 That's a cumulative RM3.29 billion which has evaporated from its market capitalisation
04:17 over the past 18 months.
04:19 Investment analysts broadly hold rather bearish valuations of the PayTV Group,
04:24 with the lowest target prices at 35 cent pegged by Carve Equities and 38 cent by M Investment Bank.
04:31 The median target price stood at 47 cent.
04:34 Overall, 6 out of 12 analysts tracking Astro have a sell recommendation on the stock,
04:40 while the rest are recommending clients to hold onto the shares.
04:44 Astro's historical dividend yield has soared to 7.5% though,
04:48 following the sharp fall in its share price.
04:51 Still, a high dividend yield may not be enough to outweigh concerns
04:55 revolving its dwindling subscriber base,
04:58 as well as its recent move to revise its dividend policy.
05:02 Shares in Astro pegged losses to close at 41.5 cent,
05:05 still down 5.68% for a market value of RM2.16 billion.
05:11 Think Tank ASEAN Plus Three Macroeconomic Research Office or MRO
05:20 found no reason for Bangkok Malaysia to intervene in the weakening ringgit,
05:24 as other currencies from the ASEAN region have also depreciated against a surging US dollar.
05:30 MRO chief economist Ko Hui told a virtual media briefing
05:35 that the ringgit is not the only currency that is weakening.
05:38 He noted that while it may be true that it is weakening at a slightly faster pace
05:43 compared to other regional currencies,
05:45 as long as it doesn't pass through in terms of high inflation,
05:49 there is really no reason for the central bank to react.
05:53 The ringgit, which is hovering at around the 4.72 level against the dollar,
05:57 has been logging losses for three straight quarters this year.
06:01 Koh pointed out that Malaysia has strong fundamentals in terms of economic activities
06:06 and noted that Malaysia's inflation rate has eased faster than expected to 2.5% in August.
06:12 MRO kept its inflation rate forecast for Malaysia at 3.1% for the rest of 2023.
06:19 [Music]