KUALA LUMPUR (June 6): Here is a brief recap of some business news and corporate announcements that made the headlines on Thursday:

Kinergy Advancement Bhd (KL:KAB) said on Thursday that it is acquiring an Indonesian company for RM8.89 million to build a 4.26-megawatt biogas plant in Aceh. KAB’s unit KAB Energy Holdings Sdn Bhd signed a term sheet with Green Energy Specialist Pte Ltd of Singapore to acquire the entire equity interest in PT Green Energy Specialist One Tbk (PT Geso). The proposed acquisition includes exclusivity over a 6.5-hectare land where the plant will be built. KAB said PT Geso has already secured a power purchase agreement with Indonesia's state electricity company PT Perusahaan Listrik Negara Tbk, which will last for a duration of 25 years from the commercial operation date. The proposed acquisition of PT Geso also includes exclusive agreement with four palm oil millers for their effluent, securing a consistent supply of raw materials essential for biogas production before the formal acquisition. — Kinergy Advancement acquires Indonesian firm for RM8.89 mil to build biogas plant in Aceh

Permodalan Nasional Bhd's (PNB) 44.11%-owned associate Duopharma Biotech Bhd (KL:DPHARMA) is currently reviewing merger and acquisition (M&A) proposals for firms in Indonesia and the Philippines, as it bids to diversify revenue streams geographically in order to reduce a reliance on ringgit-denominated earnings, said managing director Leonard Ariff Abdul Shatar. Leonard said that the group is eyeing M&A activities within Asean at the moment for ease of control. Leonard explained that Duopharma intends to increase the share of export to total sales, noting that foreign currency-denominated sales act as a natural hedge against the procurement of raw materials priced in US dollars. — PNB-backed Duopharma evaluating M&A plans in Indonesia, the Philippines

TAFI Industries Bhd's (KL:TAFI) wholly-owned unit, TA Furniture & Projects Sdn Bhd (TAFPSB) is disposing of one of its industrial premises comprising a factory annexed with a storey office in Muar, Johor for RM12 million. TAFPSB entered into a sale and purchase agreement with Comfy Factor Sdn Bhd & NNST Capital Sdn Bhd for the disposal, which will realise a gain after Real Property Gains Tax (RPGT) of some RM8.1 million, based on the net book value of RM3.1 million as at March 31, 2024. The single-storey detached factory was primarily used for furniture manufacturing. TAFI had decided to dispose of the said property, which was primarily used for furniture manufacturing, as it plans to achieve cost-efficiency by sub-contracting out certain manufacturing processes. — TAFI Industries unit disposes of Muar property for RM12 mil

Tasco Bhd (KL:TASCO) plans to invest an additional RM400 million from now to 2026 to expand its warehouse capacity. Executive chairman and substantial shareholder Lee Check Poh said the group has so far invested RM300 million in the expansion of its warehouses, exceeding the minimum RM240 million investment in capital expenditure (capex) to qualify for the income tax exemption under the Malaysian Investment Development Authority’s (Mida) integrated logistics services (ILS) scheme. — Tasco to invest additional RM400m to expand warehouse capacity over next two years

Nestcon Bhd (KL:NESTCON) has secured a RM37.7 million contract for construction works on a development project in Kota Seri Langat in Banting, Selangor. The construction outfit stated that its wholly-owned subsidiary, Nestcon Infra Sdn Bhd, has accepted a letter of award from property developer Seriemas Development Sdn Bhd to undertake the construction and completion of earthworks, soil improvement, and associated works for package 4-2 of the proposed development. The work is set to commence on June 11 and is expected to be completed within ten months, by April 10, 2025, Nestcon said, adding that the defect liability period will be 12 months from the date of the certificate of practical completion of the contract works. — Nestcon bags RM37.7 mil construction job in Selangor

The Italian government has again rejected the proposed disposal by KNM Bhd’s (KL:KNM) wholly-owned subsidiary KNM Europa BV of its entire stake in FBM Hudson Italiana SpA (FBM Hudson). The transaction had again failed to obtain the Golden Power clearance from the Italian government. The Italian government had previously rejected the proposed disposal of FBM Hudson last November when KNM had proposed to sell the company to the United Arab Emirates' Petro MAT FZCO for €22 million. Petro MAT had also failed to obtain the same Golden Power clearance from the Italian government. This time, KNM Europa was to dispose of the company to Milan-based BM Carpenterie Oil & Gas SRL, which offered to acquire a 60% stake in FBM Hudson for €9.9 million, and Verona-based Officine Piccoli SpA, which sought to acquire the remaining 40% stake for €6.6 million. The total offer came up to €16.5 million (approximately RM84.99 million). — Italian govt rejects KNM’s proposed disposal of entire stake in FBM Hudson for the second time

Parkson Holdings Bhd (KL:PARKSON) said two of its units in mainland China have renewed their respective  tenancy for another 10 years until December 2034. Parkson said Shenyang Parkson Shopping Plaza Co Ltd has entered into a supplemental tenancy agreement with Shenyang Holding Co Ltd in Heping District, Shenyang. Meanwhile, Parkson Retail Development Co Ltd (Beijing Parkson) has signed a similar agreement with Harbin International Co Ltd for its tenancy in Daoli District, Harbin. — Parkson’s subsidiaries in China renew tenancy for 10 years

Jati Tinggi Group Bhd (KL:JTGROUP) said its 30% joint venture  company has secured a RM25.55 million contract from Tenaga Nasional Bhd (KL:TENAGA) to install a 132kV underground double circuit cable for a semiconductor factory in Kuala Lumpur. The contract period is for a year from May 31. The 70:30 JV between Worktime Engineering Sdn Bhd and Jati Tinggi’s wholly-owned unit Jati Tinggi Holding Sdn Bhd must submit a performance security for the project within 56 days from May 31. — Jati Tinggi JV company bags RM26mil contract from TNB

Nextgreen Global Bhd (KL:NGGB) has signed a memorandum of understanding (MOU) with Sawit Palm Oil Industrial Cluster Sdn Bhd (SPOIC) on establishing the 400-acre Green Technology Park Sandakan in Sabah. Nextgreen said that the MOU aims to facilitate detailed discussions on the definitive agreements, including the joint venture agreement and other related agreements for the proposed project. Under the MOU, Nextgreen and SPOIC are exploring the possibility of establishing a joint venture company for the proposed project. Upon its establishment, SPOIC will hold a 70% share, with the remaining shares held by Nextgreen. — Nextgreen inks MOU with SPOIC to establish Green Technology Park Sandakan

 Sime Darby Property Bhd (KL:SIMEPROP) has proposed an internal reorganisation, which involves transferring selected assets, liabilities and business activities to its wholly-owned subsidiaries. This is to streamline the company's structure into separate business streams, to better reflect its diverse operations. As such, Sime Darby Property will function solely as an investment holding company. Under the proposal, all the township developments under Sime Darby Property which involve Bukit Jelutong, Denai Alam, Elmina Business Park, Bukit Subang, as well as Bandar Hamilton Nilai in Negeri Sembilan will be transferred to the respective units. — Sime Darby Property plans internal reorganisation to streamline business operations