NEWSBRIEF

MyCC issues notice of alledged anti-competitive price fixing to five feedmillers

The Malaysia Competition Commission (MyCC) had on 5 Aug 2022 issued a proposed decision against five feedmillers, including Leong Hup Feedmill Malaysia Sdn Bhd (LFM, a wholly-owned subsidiary of Leong Hup International), Malayan Flour Mills Bhd's partially-owned Dindings Poultry Development Centre Sdn Bhd, PPB Group Bhd's 80%-owned FFM Bhd, Gold Coin Feedmills (M) Sdn Bhd, and PK Agro-Industrial Products (M) Sdn Bhd. According to MyCC, it has provisionally found that the five enterprises have infringed Section 4 of the Competition Acts 2010 by entering into anti-competitive agreements and/or concerted practices in increasing the price quantum of poultry feed that contains soybean meal and maize as its main ingredients, between early 2020 and mid 2022. The findings are provisional at this stage, and enterprises involved will have the opportunity to submit their representation within 30 days from the date of service of the proposed decision. The final decision on the finding of the infringement is expected to be announced in October. Both PPB and Leong Hup are of the view that the allegation of the aforesaid infringement is without merit and will defend such allegation vigorously. Besides, they will seek review the matter with the external legal counsel and submit written representations within the specified period, and make an oral representation before MyCC (Bursa Malaysia & The Edge)

Higher sales and land disposal gain boost SLP Resources 2Q net profit by nearly 90%

SLP Resources Bhd’s net profit jumped 89.3% to RM8.9m in the second quarter ended June 30, 2022, (2Q22), from RM4.7m a year ago, largely boosted by a gain from the disposal of leasehold land at RM5.1m. It sold the land for a cash consideration of RM6.5m. (The Edge)

ILB: Minority shareholder’s suit to block acquisition won’t impact group

ILB Group Bhd said the lawsuit filed against the logistics services group to block its proposed acquisition of a commercial property in Petaling Jaya is not expected to have any material financial or operational impact on the group. The suit was filed on Aug 2 by BT Investment Capital Bhd, which is a minority shareholder of ILB, on the grounds that the acquisition — for RM15.9m via the issuance of new shares in ILB — will dilute the shares of existing shareholders of the group. (The Edge)

Cycle & Carriage Bintang to withdraw listing status as Jardine CCL raises stake to 91%

Singapore-based Jardine Cycle & Carriage Ltd (Jardine CCL) has raised its stake in Cycle & Carriage Bintang Bhd (CCB) to 91% under its third attempt to take over the auto distributor. Jardine CCL will procure CCB to take the requisite steps to withdraw its listing status from Bursa Malaysia, having raised its stake from 89.9% just before the offer was made on July 14. (The Edge)

D’nonce’s Unit Buys Land in Kulai to Build Factory

D’nonce Technology Bhd’s unit is acquiring 32,375 sq metres of vacant industrial land in Kulai, Johor for RM12.2m to build a new factory. The group said 82% - owned Attractive Venture (JB) Sdn Bhd is buying the land from ACL Group Sdn Bhd, which is 60% owned by Tang Mei Yean and 40% by Chia Swee Beng. (The Edge)

Hong Seng sells 20% stake in digital healthcare platform to Green Packet

Hong Seng Consolidated Bhd has sold a 20% stake in digital healthcare platform operator eMedAsia Sdn Bhd to Green Packet Bhd for RM20m. This reduces Hong Seng’s stake in eMedAsia — held through wholly-owned subsidiary HS Bio Sdn Bhd — to 60% from 80%, the group said in a filing with Bursa Malaysia. (The Edge)

Source: Hong Leong Investment Bank Research - 8 Aug 2022