Troubled Symphony Life pinning hopes on Vizione’s fortunes

LOSS-making property developer Symphony Life Bhd, which forked out some RM12mil for a 26% stake in Vizione Holdings Bhd recently, is hoping that the investment will help it diversify its sources of income.

The company also deems Vizione, a construction firm, a synergistic partner.

While the intentions of Symphony Life are good, the deal does stand out for a few reasons.

One notable aspect is that it’s rare for a listed company to hold a stake in another listed company.

Maybe if the stake was more than 50%, giving it some form of control, that may make more sense.

What makes this situation even more unique is that yet another listed company, namely hospital bed maker LKL International Bhd, also has a substantial stake in Vizione.

After Symphony Life’s entry as Vizione’s largest shareholder through a private placement of new shares, LKL’s stake has been diluted to 9.05%.

LKL bought into Vizione in 2022, initially holding a 12.21% stake.

The question for Symphony Life is whether investing in Vizione is the best use of its cash, especially considering its net debt position of around RM90mil.

The company has a colourful history, having once been majority-owned by corporate figure Tan Sri Mohamed Azman Yahya, who bought into the company in 2005 when it was known as Bolton Bhd.

In April 2021, Azman stepped down as executive chairman after selling his shares to Johor-based Muar Ban Lee Group Bhd (MBL), though he still held about 3.5% of the company as of June last year.

Following Azman’s departure, a shareholder feud broke out at Symphony Life.

Subsequently, MBL sold its 13.7% stake in the company to XOX Bhd, a Bursa Malaysia-listed firm in the telecom sector.

However, XOX has remained in the red for the last few financial years.

Vizione itself slipped into a net loss position of RM79.7mil in its second quarter ended Nov 30, 2024 (2Q25) from 1Q25’s net profit of RM218,000.

In its forward-looking statement, Vizione said it was badly affected by the Covid-19 pandemic. Subsequently, the removal of the diesel subsidy by the government impacted project costing and its financial performance.

It is currently working closely with its clients to address the outstanding balances and is focused on accelerating the progress of construction projects that were delayed during the pandemic.

The proceeds from its private placement, which was entirely taken up by Symphony Life for RM12.05mil, are earmarked to fund Vizione’s RM490mil construction job awarded by Hardie Development Sdn Bhd and a RM524.61mil affordable-apartment development in Putrajaya.

However, it remains to be seen whether this funding alone will be sufficient to turn around Vizione’s fortunes, and by extension, that of Symphony Life.