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]
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