MY Morning Wrap | Public Bank Receives Approval to Acquire RHB Bank's Stockbroking Firm in Vietnam

The US stock market experienced a sea of red on Friday as non-farm payrolls data indicated continued strength in the labor market, weakening the case for the Federal Reserve to begin cutting interest rates. Decliners outnumbered gainers by a ratio of 2.5-1, with utilities, materials, and real estate leading losses, while financials advanced. The tech-heavy $Nasdaq Composite Index (.IXIC.US)$ declined by 0.2% to 17133.126, while the $S&P 500 Index (.SPX.US)$ slipped 0.1% to 5346.99. The $Dow Jones Industrial Average (.DJI.US)$ lost 0.2% to 38798.99.

$PBBANK (1295.MY)$: Public Bank has received approval from the State Securities Commission of Vietnam to acquire RHB Bank's stockbroking firm in Vietnam for RM72.55 million. The approval is subject to two conditions, namely that the proposed acquisition must be completed within six months from the date of approval, failing which the approval shall lapse, and the stockbroking firm, RHB Securities Vietnam Company Ltd, shall implement the reporting and publication regime in accordance with the applicable regulation.

$MAXIS (6012.MY)$: Maxis has announced that it is ready to complete the Digital Nasional share subscription agreement (SSA) process, putting the company on track to participate in the rollout of the second 5G network ahead of the timeline given by Communications Minister Fahmi Fadzil. Maxis is one of the five mobile network operators involved in the implementation of the national dual network 5G model. The early completion of the SSA process will provide greater certainty to the nation's dual 5G network rollout, according to Maxis CEO Goh Seow Eng.

$PGLOBE (3611.MY)$: Paragon Globe, a Johor-based property developer, is set to acquire a 9.84-acre parcel of land in Plentong, Johor Bahru, for RM13.5 million. The group plans to develop the land by constructing a detached factory, with construction scheduled to commence in 2025 and expected to take 1.5 years to complete. The estimated gross development value of the proposed development is approximately RM76.13 million, with an expected gross development cost of RM55.14 million, according to the group, which is anticipating a gross development profit of RM20.99 million.

$TURIYA (4359.MY)$: Doctor-turned-businessman Tan Sri Mohan MK Swami and his partner Datuk Seri Dr Shamir Kumar Nandy have closed their takeover bid for Turiya Bhd, raising their stake in the property management firm to 59.46%. M&A Securities Sdn Bhd, on behalf of Turiya, informed Bursa Malaysia that the mandatory general offer by Khidmat Kejora Sdn Bhd and Neo Pixel Sdn Bhd, the special purpose vehicles of Swami and Shamir, had closed at 5pm on Friday.

$DSS (0269.MY)$: DS Sigma Holdings, a corrugated paper packaging maker, has proposed to transfer its listing from the ACE Market to the Main Market of Bursa Malaysia, citing that it has met the required profit requirements. The company recorded a profit after tax (PAT) of RM8.16 million for its financial year ended June 30, 2023, and an aggregate PAT of RM49.49 million for FY2021, FY2022, and FY2023. Under the equity guidelines issued by the Securities Commission Malaysia, a company must have an uninterrupted profit of three to five full financial years prior to submission to the SC, with an aggregate PAT of at least RM20 million and a PAT for the most recent financial year of at least RM6 million. DS Sigma expects the listing transfer to be completed in the second half of 2024.

$EURO (7208.MY)$: Euro Holdings, a furniture maker, has announced plans to dispose of an 8,000 sq m industrial land in Rawang, along with a two-storey detached factory and an annexed three-storey office building, for RM17.3 million in cash. This is part of the company's business transformation plan to rationalize non-core assets and move its warehouse from Rawang to its steel furniture manufacturing plant in Melaka. Of the proceeds from the disposal, RM5.5 million will be used to repay borrowings, RM10.5 million to fund working capital, and the remaining RM1.3 million will be allocated for estimated expenses related to the disposal exercise, according to Euro Holdings.

$KTI (0308.MY)$: Integrated property developer KTI Landmark's initial public offering (IPO) for its listing on the ACE Market has been oversubscribed 8.14 times, with a total of 6,912 applications received seeking 365.69 million new shares from the Malaysian public. The IPO proceeds of RM48 million will enable the company to acquire landbank for future projects, with a focus on residential and commercial properties in Sabah. Part of the proceeds will also be used to supplement the company's general working capital requirements for the ongoing The Logg's mixed development project. The company is scheduled to list on the market on June 19, 2024, with a market capitalization of RM240 million based on the issue price of RM0.30 per share.