EVENING 5: MoF to buy BHIC’s stake in BNS for RM1

The Edge TV

In today’s edition of Evening 5 — Boustead Heavy Industries Corp is disposing of its 20.77% stake in Boustead Naval Shipyard to the MoF for RM1. Meanwhile, Putrajaya looks to restart talks with Goldman Sachs Group, and does not rule out a lawsuit against the US bank.

Transcript

00:00 [Music]

00:04 Bowstad Heavy Industries Corp or BHIC is disposing of its 20.77% stake

00:10 in troubled Bowstad Naval Shipyard or BNS to the MOF for RM1.

00:15 This is in line with the government's decision to take over the littoral combat ship contractor

00:20 to ensure the delivery of the vessels.

00:22 In a Boris filing, BHIC, the shipbuilding arm of Bowstad Holdings,

00:27 said its subsidiary, Prestim Industries, inked a share sale agreement with Ocean Sunshine,

00:33 a company wholly owned by MOF Inc. owned AES Solutions for the exercise.

00:38 Apart from this stake, Bowstad holds a 68.85% share in BNS,

00:43 while Lembaga Tabung Angkatan Tenterah, which in June this year took Bowstad private,

00:48 owns a 10.38% interest.

00:51 The MOF also holds one special share in BNS.

00:54 BHIC said the RM1 consideration was arrived at

00:58 after taking into consideration BNS' latest audited net liabilities position of RM848.45 million

01:06 as it ends December 2022,

01:09 as well as to facilitate the government's decision to take over the LCS contractor.

01:14 The disposal is expected to be completed by the fourth quarter of 2023.

01:19 Prime Minister Dato' Sri Arnold Ibrahim said

01:26 Putrajaya may consider taking Goldman Sachs Group to court over its role in the 1MDB scandal.

01:33 Arnold told CNBC's Martin Song as part of the CNBC conversation

01:38 that the bank has not been too forthcoming

01:40 and that the government is looking at its options beyond reopening negotiations.

01:46 Asked if Malaysia would proceed with the lawsuit,

01:48 the premier said he is not discounting the possibility of resorting to legal action.

01:53 He did, however, acknowledge that the issue was complex

01:57 and a lawsuit in the US would cost the government a fortune.

02:01 Goldman Sachs and the government are at odds over how much the US bank needs to pay

02:05 for its role in the fiasco.

02:07 Both sides also disagree on whether the government has received at least

02:11 US$500 million as of August last year

02:14 and whether an interim payment of US$250 million is due.

02:18 AMNB Holdings, or AmBank, saw its first quarter FY2024 net profit drop 7.8%

02:30 to RM378.37 million on noticeably higher net impairment charges.

02:37 In a statement, the lender said

02:39 net impairment charges stood at RM190.4 million

02:43 compared to RM63.9 million in the same quarter the previous year,

02:48 mainly due to higher provisions.

02:50 It noted that profit before provisions jumped 14% to RM694.2 million.

02:57 Revenue for the quarter rose 4.3% to RM1.2 billion

03:01 as it witnessed a 67.8% growth in non-interest income from continuing operations.

03:08 It also booked a RM51.1 million gain from the completion of its general insurance business disposal.

03:14 Looking forward, its Group CEO, Datuk Sulaiman Muhammad Tahir, said

03:18 AmBank is bullish on domestic demand

03:21 and is keenly eyeing opportunities in the small and medium enterprise sector.

03:26 At the close, AmBank's share price was 2.3% lower at RM3.77,

03:31 valuing the group at RM12.49 billion.

03:34 MyEG Services booked a 25.8% jump in second quarter FY2023 earnings

03:46 as top line expanded from an overall increase in revenue from existing services

03:51 and contribution from newly launched services

03:54 from its Zytrix blockchain platform and sale of Zytrix tokens.

03:59 Quarterly net profit improved to RM111.56 million.

04:04 Meanwhile, revenue rose 14.3% to RM184.88 million.

04:09 The digital services provider declared a dividend of RM0.25 per share.

04:14 As for the cumulative six-month period, net profit rose 25.5% to RM217.49 million

04:22 as revenue increased by 10.7% to RM358.1 million.

04:28 According to MyEG, the high overall revenue and Zytrix-related contributions aside,

04:34 it also booked a one-off recognition of fair value gain in investment

04:38 as a result from the listing of its investment in Agmo Holdings.

04:42 Barring any unforeseen circumstances, the company said it is cautiously optimistic

04:48 that its long-term outlook remains positive.

04:51 Shares of MyEG settled unchanged at 79 cent a day,

04:55 giving the Group a market capitalisation of RM5.91 billion.

04:59 A witness told the High Court that Datuk Seri Dr Ahmad Zahid Hamidi

05:08 had given a RM10 million cheque to a friend's company

05:11 as paid-up capital to bid for a contract linked to Tenaga National.

05:15 Datuk Seri Khalid Mohamad Jiwa, who is known as Datuk K,

05:19 was testifying in Zahid's criminal trial as a defence witness today.

05:24 He said that in 2015, the Deputy Prime Minister had given the cheque from Yayasan Akal Budi

05:29 to Armada Holdings, which was owned by Datuk Wasi Khan Elias Wasiyu Zama Isra.

05:36 He said this was to help Wasi's company meet TNB's capital requirements for bidders,

05:41 and that the sum was an investment.

05:43 The witness said that Wasi's company has since repaid the sum

05:47 and given Yayasan Akal Budi returns of RM69,722.65,

05:54 even though it was unsuccessful in securing the contract.

05:58 Yayasan Akal Budi had issued the cheque on November 16, 2015.

06:02 Armada was established on December 3, 2015,

06:06 while the cheque was deposited into its bank accounts four days later.

06:10 [Music]

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