In today’s edition of Evening 5 — Bursa Securities moved certain goalposts for AirAsia X according to sources in the wake of the regulator rejecting its plan to lift its PN17 status. Meanwhile, Gamuda has bagged itself another job in Taiwan, this time worth RM3.45 billion.
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00:00 AirAsiaX's bid to lift itself out of PN17 status was rejected by Bursa Securities as
00:10 the regulator set out additional requirements for the airline according to sources.
00:14 They said that the regulator wants the airline to define what is or what isn't a one-off
00:19 item following differences of opinion.
00:22 Sources told The Edge that aside from ticket sales, buying and selling of aircraft, for
00:26 instance, is a normal income stream for airlines and are not extraordinary items.
00:31 Likewise, provisions for travel vouchers that are distributed to passengers and travel agents
00:36 are considered normal business from an airline perspective such that there will be a write-back
00:41 if they are not redeemed before the expiry date in the next quarter, effectively reversing
00:46 the provisions that have been made prior.
00:49 Travel vouchers are accounted for as ancillary income to the main business of selling tickets
00:53 according to sources.
00:55 However, Bursa Securities had requested that AAX's external auditor, Mrs Ernst & Young,
01:00 provide a certificate that there are no one-off items on AAX's income statements and therefore
01:06 considered part of ongoing operations, said the sources.
01:09 Meanwhile, analysts said Bursa Securities has also imposed an additional requirement
01:14 on AAX amid increased scrutiny of airlines following the recent collapse of MyAirline.
01:19 AAX will now have to show four consecutive quarters of net profit to exit the stock exchange's
01:25 PN17 financially distressed category.
01:28 However, the analyst does not expect the requirement to be an issue for AAX as it has managed to
01:33 turn around its financial position from 12 quarters of losses since end June 2019 to
01:39 registering four consecutive quarters of net profit.
01:42 Meanwhile, the Financial Times reported that Ultimate Parent Capital A is planning to raise
01:46 more than US$1 billion in debt and equity and will list some of its businesses through
01:52 a blank check company, according to the report.
01:55 Citing two people familiar with the deal, the FT reported that CEO Tan Sri Tony Fernandes
01:59 has agreed to a deal with Ethereum Acquisition, a special-purpose acquisition company, and
02:05 plans to list several businesses through it next year.
02:08 This includes a new business extending the AirAsia brand to companies hoping to start
02:12 airline franchises in developing countries.
02:15 The potential fundraising also includes a US$150 million loan from Bangkok Bank this
02:20 month, according to the FT report.
02:23 Komoda, together with its JV partner in Taiwan, has bagged a design and build contract for
02:32 the construction of Taiwan's Kaohsiung MRT Metropolitan Line from Kaohsiung City Government
02:38 for 3.45 billion ringgit.
02:40 This marks Komoda's third railway project in Taiwan and its second project in Kaohsiung.
02:46 Komoda built the Kaohsiung MRT Orange Line back in 2008.
02:50 In 2022, Komoda also secured the 2.13 billion Taoyuan City Underground Railway Project in
02:56 Taipei.
02:57 Komoda is delivering six infrastructure projects in Taiwan, including the Guantan Marine Bridge,
03:03 Taipei Port Seawall, and 161 KV Shongshu to Guanfeng Underground Transmission Line.
03:09 The latest project construction works, namely Package YC01 awarded to Komoda and Asia World
03:14 Engineering and Construction, is a 4.4-kilometre railway track located within the Niaosong
03:20 District, comprising 3.5 kilometres underground twin board tunnels and 0.9 kilometres elevated
03:26 tracks.
03:27 Komoda has a majority 88% stake in the JV, hence its share of the contract value is 3.03
03:33 billion ringgit.
03:34 The package is estimated to be completed within nine years and Komoda expects this project
03:39 to contribute positively to its revenue and earnings for its FY 2024, ending July 31,
03:45 2024.
03:46 Kaohsiung is the third largest city in Taiwan with a population of 2.73 million and is considered
03:52 a vital economic hub in the south.
03:55 The new MRT line is crucial to strengthening the city's transportation infrastructure
03:59 and supporting ongoing economic expansion.
04:02 Former Parti Pribumi Bersatu Malaysia Information Chief Wan Saiful Din Wan Jan on Wednesday
04:12 claimed trial to 18 counts of alleged money laundering amounting to a total of 5.594 million
04:19 ringgit.
04:20 Wan Saiful, who is also Tasik Gelugor MP, was charged before Sessions Court Judge Susannah
04:26 Husin.
04:27 Last February, he was charged at another Sessions Court with graft in allegedly receiving
04:31 $6.96 million in WSA Advisory Account where he is a director and soliciting $232 million
04:39 over the Central Spine Road project from the federal government.
04:43 The charges of money laundering on Wednesday are in relation to purported graft received
04:48 where he is said to have committed money laundering from August 12 to November 7, 2022 using funds
04:54 from WSA Advisory.
04:56 If found guilty, Wan Saiful stands to face a maximum 15 years jail term or a fine of
05:02 up to five times the money laundered of RM5 million, whichever is higher.
05:07 Meanwhile, Adam Radlan Adam Mohamed was charged with one count of money laundering of using
05:12 RM500,000 from his CIMB account between December 2, 2021 and February 22, 2022.
05:19 Prior to this, Adam Radlan was charged last February with two counts of graft in relation
05:24 to the Jana Wibawa Programme.
05:26 He is charged to have solicited a bribe amount of 3.5 to 7 percent of the total amount of
05:32 a roadwork project worth RM47.8 million from Mat Juso Mamat, who is the Managing Director
05:38 of MIE Infrastructure and Energy.
05:41 In the second charge, he allegedly received RM500,000 in his CIMB bank account from Juso
05:45 Mamat as an inducement for helping MIE secure the roadwork project from Jalan Sungai Adam
05:52 to Kampung Panat, Perlis.
05:53 Malaysia Airport Holdings has disposed of its 11 percent holding of the issue and share
06:03 capital in GMR Hyderabad International Airport for a total cash consideration of US$100 million.
06:11 According to a BORS filing, MAHB's wholly owned subsidiary, MAHB Mauritius, had entered
06:16 into a sale and purchase agreement with GMR Airport Singapore for the disposal for the
06:21 entire 41.58 million shares in GHI.
06:25 MAHB is expected to net a gain of US$23.7 million from the disposal.
06:32 At present, GHI manages the operations of the Rajiv Gandhi International Airport in
06:36 Hyderabad, India, and the Bidar Airport in Karnataka, India.
06:41 MAHB points out that it only holds a minority stake and that since the opening of the Rajiv
06:46 Gandhi Airport on March 23, 2008, the group had only received US$6.41 million of dividends
06:53 from GHI.
06:55 According to MAHB, the proposed disposal provides it an opportunity to dispose and unlock the
07:00 value of its non-core assets and streamline its overseas investment portfolio.
07:05 The airport operator says that it intends to utilize the proceeds for capital expenditure,
07:10 general corporate purposes, and to defray the expenses related to the proposed disposal,
07:15 which is expected to be completed by the first quarter of next year.
07:24 Hong Leong Group, a conglomerate controlled by billionaire Tan Sri Kwek Leng Chan, is
07:28 considering selling its majority stake in Southern Steel and is seeking a valuation
07:32 of as much as US$200 million or around RM944 million, according to people familiar with
07:39 the matter, said Bloomberg Reports.
07:41 The company is working with advisers on the planned divestment of its 70% stake in the
07:46 Kuala Lumpur-listed arm, which could be between US$100 million and US$200 million.
07:51 At the top of the range, it would be more than double the steel company's current market
07:55 capitalization.
07:57 Southern Steel was among Bursa Malaysia's top gainers today, ending Wednesday 31% or
08:02 17.5 cents higher at 73.5 cents.
08:05 Hong Leong and its advisers have reached out to companies in the same industry as well
08:10 as financial investors to gauge their interests, the people said, asking not to be identified
08:15 as the information is private.
08:17 Deliberations are ongoing and Hong Leong could still hold on to its stake, according to the
08:21 Bloomberg Report.
08:22 [MUSIC]