PROPOSED DISPOSAL BY DAYA CMT SDN BHD, A 51%-OWNED SUBSIDIARY OF DAYA MATERIALS BERHAD, OF A PARCEL OF LEASEHOLD LAND HELD UNDER PAJAKAN NEGERI 2864, LOT 8071, MUKIM 12, DISTRICT OF BARAT DAYA, STATE OF PULAU PINANG TOGETHER WITH INDUSTRIAL PREMISES COMPRISING A DOUBLE-STOREY OFFICE BUILDING WITH AN ANNEXED SINGLE STOREY DETACHED FACTORY, A SINGLE-STOREY WAREHOUSE WITH AN ANNEXED DOUBLESTOREY DETACHED OFFICE BUILDING AND OTHER ANCILLARY BUILDINGS ERECTED THEREON TO WANJUN ENGINEERING SDN BHD FOR A CASH CONSIDERATION OF RM10,328,000 ("PROPOSED DISPOSAL")
15 JAN 2020. LETTER OF AWARDS BY SING FOONG NIAP ENGINEERING SDN
BHD (“SFNESB”) TO DAYA CMT SDN BHD (“DCMT”), A 51.0%-
OWNED SUBSIDIARY OF THE COMPANY, AS SUB-CONTRACTOR IN
RELATION TO THE PROPOSED CONSTRUCTION OF A RECYCLE
PULP AND PACKAGING PAPER PLANT ON LOT 71922 (PT 41097)
AND 10534 (PT 473), MAHKOTA INDUSTRIAL PARK, BANTING,
MUKIM TANJUNG DUA BELAS, KUALA LANGAT, SELANGOR
DARUL EHSAN.
KUALA LUMPUR (Jan 15): Construction work needs to be stopped during the Movement Control Order (MCO) period in the states involved, according to the Works Ministry.
However, exemptions will be given for work on the list of essential services including maintenance and critical repairs such as slope and road repairs; construction of major public infrastructure as well as building construction for projects that provide complete accommodation of workers on construction sites or Centralised Labour Quarters.
In addition, there will be exemptions for the operation of professional services/consultants as well as other services within the supply chain such as supply of building materials and delivery of materials, limited to construction sites approved for operation.
According to the Frequently Asked Questions (FAQ) on the MCO issued by the ministry, all operating permits must be obtained from the International Trade and Industry Ministry (MITI) through MITI's Covid-19 Intelligent Management System (CIMS) portal.
Employers must also stick to the operating hours set by local authorities.
In the meantime, the ministry stressed that construction workers are not allowed to move from one construction site to another, apart from the fact that they need to bring a valid employee pass or employer's authorisation letter and MITI CIMS operation approval letter for any movement.
4. RATIONALE AND BENEFITS OF THE PROPOSED DISPOSAL
The financial difficulties faced by our Group began with the downturn in the global oil and gas
industry since 2014 and the corresponding reduction in expenditure in the exploration,
development and production of oil and natural gas by oil majors, along with the deferment of
projects. The prolonged reduction in oil and gas activities led to oversupply in the offshore
support services segment, in which our Group operated, and adversely affecting demand for
our Group’s services. This resulted in the assets of our Group being either left idle or under-
utilised, leading to impairment loss and write-downs in the value of these assets. As a result of
the financial deterioration, financing arrangements available to our Group have become more
restrictive, which has led to further challenges for our Group in managing and supporting our
business operations.
The financial difficulties were also exacerbated by ongoing litigations with our Group’s
contractors in our technical services segment, leading to further impairments of receivables,
and causing our Company to lapse into Practice Note 17 status on 28 February 2018 when
our shareholders’ equity on a consolidated basis fell below RM40.0 million and represented
less than 25% of our issued share capital based on our unaudited consolidated financial
statements for the financial year ended 31 December 2017.
Our Company is thus required to submit a regularisation plan to the relevant authorities by 28
February 2018 and we were subsequently granted an extension of time up to 27 February
2021 to submit the regularisation plan to the relevant authorities for approval.
To that end, we have been in active discussions with our advisers to restructure our debts and
liabilities, and negotiate with lenders and creditors on a debt restructuring scheme, which
culminated in the announcement of the Proposed Regularisation Plan on 31 December 2020.
In parallel with the steps taken above, our Group has been exploring options to monetise
assets in order to improve our liquidity position. The Proposed Disposal will allow the DCMT
Group to raise the much needed funds for its working capital requirements, albeit limited, to
tide over its cash flow crunch in the interim, as well as to reduce our bank borrowings. The
proceeds from the Proposed Disposal will also provide the DCMT Group with working capital
to sustain its business operations, which our management has identified to be viable and will
form part of the core business of our restructured Newco group under the Proposed
Regularisation Plan. In addition, the Disposal Consideration also represents an attractive
premium over the market value and latest audited NBV of the Property, which would enhance
the earnings of our Group with an estimated net gain on disposal attributable to owners of our
Company of approximately RM3.7 million.
The Board of Directors of the Company wishes to announce that the Company had on 31 December 2020 made the requisite announcement in relation to the Company’s proposed regularisation plan (“Proposed Regularisation Plan”). The Company is in the midst of preparing the application to Bursa Securities in relation to the Proposed Regularisation Plan.
Bursa Securities had, via its letter dated 23 October 2020, decided to grant the Company a further extension of time up to 27 February 2021 to submit the Proposed Regularisation Plan to the regulatory authorities.
The Company has approximately one (1) month to submit the Proposed Regularisation Plan to the regulatory authorities for approval.
The Company will make the necessary announcement on further development of the Proposed Regularisation Plan in accordance with the requirements under PN17.
Daya Materials: Bags RM23.8m sub-contractor job. Daya Materials’ 51%-owned subsidiary Daya CMT SB accepted a RM23.86m project from Sing Foong Niap Engineering SB, as sub-contractor in relation to the proposed construction of a recycle pulp and packaging paper plant in Kuala Langat, Selangor. The project is targeted to be completed by June 30, 2021. It is expected to contribute positively to the future earnings of the group. (SunBiz).
Contract is to provide downhole imaging services which will be deployed on memory, real time or drill pipe conveyance system in both cased or open hole well for PCSB’s assets in East and West Malaysia.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
freddiehero
16,715 posts
Posted by freddiehero > 2021-01-04 23:12 | Report Abuse
chart nice, big smile face..