Vertice (former Voir)

[winston]

not vested

Voir eyes 13.2% stake in Penang undersea tunnel contractor Consortium Zenith

BY M. HAFIDZ MAHPAR

Voir proposes to dispose of its unisex brands (under Applemints Apparels) and focus on ladies apparels and accessories.

KUALA LUMPUR: Fashion apparel retailer Voir Holdings Bhd has proposed to diversify into areas such as construction and property development by taking 13.21% equity interest in Consortium Zenith Construction Sdn Bhd.

Consortium Zenith - whose chairman Datuk Zarul Ahmad Mohd Zulkifli is also Voir’s chairman and substantial shareholder (with a 43.4% stake) - was awarded contracts worth RM6.34bil by the Penang government in 2013.

Under the mega infrastructure project, Consortium Zenith will design and build a 7.2km undersea tunnel linking Penang island to the mainland and three roads, after which it will also operate and maintain the tolled tunnel for at least 30 years.

In a filing with Bursa Malaysia, Voir proposed to subscribe to new shares comprising 13.21% equity interest in Consortium Zenith for RM9.86mil in cash.

The board had appointed BDO Capital Consultants Sdn Bhd as the independent adviser to advise shareholders of Voir who have no self interest in the deal.

On Consortium Zenith’s prospects, Voir said the mega infrastructure project would keep it occupied for the next 10 years, subject to finalising the terms and conditions with the Penang state government.

The group expects the construction, property development, property investment, infrastructure projects and toll concession businesses to grow and possibly in the future contribute 25% or more of group’s net profit and/or result in a diversion of more than 25% of the group’s net assets.

Voir also proposed on Wednesday to dispose of its unisex fashion brands via the sale of its entire equity interest in wholly-owned casual wear retailer Applemints Apparels Sdn Bhd to TDST Sdn Bhd (a licensee of the Tangs retailer brand in Malaysia) for RM21mil in cash.

It said this proposed disposal, which would give it a gain of RM0.7mil, was in view of the company's lack of expert resources and creative team to grow the business in male apparels, footwear and accessories.

The group will continue its fashion retailing business but by focusing on ladies apparels and accessories. Its 100% owned subsidiary Kumpulan Voir Sdn Bhd has been in the ladies fashion retailing business for more than 20 years in Malaysia, carrying local brands such as Voir and South China Sea that are targeted at the middle-class female segment.

The proceeds from the disposal would be used to repay bank borrowings (the group’s borrowing excluding Applemint Apparels’ was about RM8.74mil) and for general corporate and working capital.

Voir is also proposing to change the company’s name from Voir Holdings Bhd to Vertice Bhd and to set up a share issuance scheme of up to 15% of its issued share capital (excluding treasury shares).

The SIS options will be given to director(s) and/or employee(s) of the group who meet the criteria of eligibility for participation in the SIS.

Voir said its board expected the proposals to be completed by end of this year (Dec 31).

Source: The Star

http://www.thestar.com.my/business/busi ... wdxgWCe.99

[winston]

not vested

May 30, 2017

Voir mulls diversifying into construction, logistics

KUALA LUMPUR (May 30): Voir Holdings Bhd is looking to diversify beyond its existing fashion retail territory to include construction and logistics businesses.

Voir chairman Datuk Zarul Ahmad Mohd Zulkifli, who also controls Consortium Zenith BUCG Sdn Bhd, a private construction company, said the board of Voir is now considering how to synergise the two business groups to enhance shareholder value.

“I have my construction business, as well as logistics. So, we are looking at the possibility of Voir venturing into the two areas subject to approval by the relevant authorities,” he told reporters after Voir’s annual general meeting yesterday.

“The [proposal] paper is being prepared by management and the board will have to sit down and deliberate seriously as this is a very important milestone for us.

“This will determine the direction Voir is going in the future and how it will impact shareholders,” Zarul said, adding that he hopes to make synergies happen this year.

On the construction of the RM6.3 billion Penang mega project to build three expressways and an undersea tunnel linking Penang island to the mainland, Zarul said it is still subject to the approval of the Department of Environment, but he expects it to take off in July.

Consortium Zenith was awarded the project by the Penang state government after an open tender which attracted some 60 rival bids but Consortium Zenith’s bid offered the best technical and financial bid at the lowest price of RM6.3 billion in 2012.

The project will be built in exchange for 110 acres (44.5ha) of reclaimed land from the Penang government.

In December 2016, Voir, via its wholly-owned subsidiary Million Twilight Sdn Bhd, accepted a small sub-contract job worth RM24.62 million from Wira Syukur (M) Sdn Bhd to complete 1,000 units of apartments in Kota Baru, Kelantan. The project was for a period of 12 months commencing from Oct 1, 2016 to Sept 30, 2017.

Meanwhile, Zarul said Voir is looking at scaling down its fashion retail business given the unpredictable business environment. It closed down seven retail outlets last year and opened three new ones so far this year.

“There are [still] areas in the fashion retail business that are profitable and have the potential to grow. So, we will maintain those businesses that are viable,” he said, adding that the group will be opening a new outlet at the Genting Premier Outlet next month.

Zarul said the group is still working on its rationalisation plan, which he hopes to conclude by this year. The group has already discontinued its food and beverage and beauty and wellness segments’ businesses at the end of 2016.

Voir swung to a net loss of RM385,000 in the first quarter ended March 31, 2017 (1QFY17) compared to a net profit of RM101,000 a year ago, due to loss suffered from its discontinued beauty and wellness segment and also a marginal loss incurred from its core apparels retail business.

Its quarterly revenue, however, rose 6.8% to RM48.28 million from RM45.19 million in 1QFY16.

Source: The Edge

https://www.edgeprop.my/tags/datuk-zaru ... d-zulkifli

[winston]

not vested

Vertice Bhd
Price: 87.5sen

Our second stock pick for 2020 is construction firm Vertice Bhd, which was formerly known as VOIR HOLDINGS BHD.

We are looking at this stock as the group is expected to return to profitability after streamlining its operations to focus on construction.

Last year was a transitional year for the group, following the sale of its majority stake in its fashion retailing business in 2018.

The outlook for the group’s construction business is bright, given Vertice’s alliance with the main contractor of the RM6.3bil Penang Transport Masterplan project, Consortium Zenith Construction Sdn Bhd.

There are four construction packages under main contractor, with Package 2, worth RM815mil having been awarded to Vertice.

Package 2 involves the construction of a by-pass from Bandar Ayer Hitam to Lebuhraya Tun Dr Lim Chong Eu.

The groups alliance with the main contractor of the project also provides the possibility of Vertice securing further work packages.

We also expect a boom in the construction sector this year, with mega infrastructure projects like Bandar Malaysia coming up, and this should be beneficial for Vertice.

Its participation in the construction scene in Penang is also positive, given that Penang is among the states with the most construction activities in the pipeline.

Overall we are optimistic on Vertice given its strong outstanding orderbook of RM1bil, and as the works on the Penang Transport Master Plan project will keep the group busy, providing earnings visibility for the next three to five years.

Source: Rakuten