20091124 1027 Malaysia Corporate News.

Sources of The Australian say that Astro has taken a significant stake in Fetch TV, an IPTV start-up that is slated to launch its services in Australia next year. This is to seize the opportunity created by the Australian government's proposed national broadband network (NBN), which opens the door for new players to challenge traditional media players for a share of the country's TV viewers. Astro neither confirmed nor denied the news. (Financial Daily)
This news is a surprise and should be positive for Astro in the long run as it attempts to expand its media reach regionally. However, there could be start-up risks involved going by the "greenfield" nature of the venture and stiff competition. Astro may adopt its Malaysian pay TV model there, which would leverage on Australia's high population base.

The government is working on a plan that allows households to sell excess solar power to the national grid to spur usage of renewable energy, said Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui. This will form part of the new Renewable Energy Act that is expected to be tabled in Parliament by next June, the minister said. A feed-in tariff mechanism modelled after Germany's system will be introduced under the new law. (BT) 

Tenaga has signed a Renewable Energy Power Purchase Agreement (REPPA) with Achi Jaya Plantations Sdn Bhd for 21 years to purchase electricity from the company for RM2.3m/year. The plant has an export capacity of 1.25 MW. Todate, the total capacity under the REPPA is 75.8 MW. (BMSB)

CPO rose to its highest price in more than three months on the back of bullish sentiments on commodities and strong trading interest. The contract for February delivery rose 2.8% to RM2,486 per tonne, the highest since mid-August. Jim Teh, a palm oil trader at Interband group, said CPO was mainly boosted by speculative interest as volume was low. Societe Generale de Surveillance said Malaysia's palm oil exports rose 16% in the first 20 days of November. Another surveyor, Intertek said palm oil exports increased 15% for the same period. (Financialdaily) 

Perodua expects to capture 33.3% share of the local car market next year, citing better sales for its models, an improving market and better purchasing power of consumers as factors. For the first 10 months this year, its market share was 31.1%, said group MD, Datuk Syed Abdul Hafiz Syed Abu Bakar. 

• Besides the Myvi and Viva models, the local car manufacturer was also banking on its newly launched MPV, ALZA, model to rake in more sales.
• ALZA, for which booking was opened 10 days ago, has received 3,500 bookings up to 2pm yesterday. (Bernama)

Despite the current market outlook, Proton expects sales in the domestic and overseas market to improve with the gradual introduction of the Saga and Exora in the global markets, beginning with the Asean region. Meanwhile, MD Syed Zainal Abidin said the carmaker hopes to announce a strategic partner ‘very soon’, without naming names. “It will be a partner that is good for the country and the eco-system. It will be a much bigger collaboration,” he added. (Malaysian Reserve)

Domestic rebar prices in Malaysia have remained flat in the past two weeks on weak demand, sources said. Malaysian mills and traders said rebar prices were at RM1,950-2,100/tonne, unchanged from a fortnight ago. But many mills or traders are undercutting prices to encourage sales, according to traders and mill officials. 

• November and December are traditionally off-peak months due to the upcoming festive season, a Malaysian mill official said. "Mills often give RM25-50 discount to close deals,” he said. The low demand has also been due to rains that have slowed construction projects, a Singapore-based trader with operations in Malaysia said.
• Demand in Malaysia is not expected to increase until January, when post-seasonal demand returns, market participants said. But no further price cuts are expected as international prices are showing an upward trend recently, sources said. "We are just trying to maintain the current level," the mill official said. (Metal Bulletin)

MMC Corp's Port of Tanjung Pelepas (PTP) and Johor Port are awaiting the green light from the Government to consolidate and rationalise their operations. Under the proposal, Johor Port’s container operations in Pasir Gudang will be moved to PTP in Gelang Patah, turning Johor Port into a non-containerised port, while PTP will focus on its forte of handling containerised cargo. “The Government is still deliberating on the proposal but is expected to make a decision probably before the end of the year or early next year,” industry sources said.

• They said the Government was likely to approve the proposal, citing the move was of national interest and that the Transport Ministry and the Malaysian Industrial Development Authority (Mida) had been tasked to oversee its implementation. Senior officials from MMC Corp Bhd, Johor Port and PTP had on Oct 5 briefed the Transport Ministry on the proposal. A closed-door briefing was held recently between senior officials from Mida, MMC, Johor Port and PTP with the companies in Pasir Gudang to discuss the proposal. However, no agreement was reached between the parties concerned.
• Another meeting will be held next month as shippers had raised concerns earlier of the higher haulage costs likely to be incurred if they were to use PTP instead of Johor Port. “However, they (shippers)  must look at the positive side – the increase (in cost) will be offset by the time saved through direct sailings out of PTP,” the sources said, adding that unlike PTP, Johor Port could only cater to smaller vessels. (BT)

Unicorn Investment Bank BSC may make three purchases, including buying a stake in Bank Islam Malaysia from Dubai Group LLC, as the financial crisis lowers corporate valuations. "We understand Dubai Group is accessing its own options with regard to that investment," managing director of Unicorn's strategic mergers and acquisitions, Fred Stonehouse said.

• "We feel we know the Malaysian market well and it's a well developed Islamic market so any opportunities that becomes available for a major stake, will be taken". Unicorn plans to use its strategic acquisitions fund and money from co-investors and shareholders to finance purchases, which may include a minority stake in a Bahrain-based Islamic institution and controlling sake in Gulf based asset management firm, Stonehouse said. (Bloomberg)

DNP Holdings, will launch its most expensive residential project dubbed "Le Nouvel", worth an estimated RM1bn, in Kuala Lumpur by end-2010 or early 2011, says GM Lee Kong Beng. Le Nouvel comprises two residential towers with 43 and 49 floors respectively, offering a total of 197 condominium units ranging from 1,800-4,700sf. 

• The towers will be built near Avenue K on Jalan Ampang. "We have the approvals to do the project, but the current market conditions are unfavourable to a launch. A better timing would be a year from now," says Lee.
• DNP may sell the buildings enbloc if it receives good offers. DNP's immediate focus is to launch 25 units of luxury condominiums in a five-storey block along Jalan U-Thant, Kuala Lumpur, for some RM200m, in 3-6 months from now. DNP will also launch Block B and D of Verticas Residences in Bukit Ceylon, Kuala Lumpur, pending sales of Block A. (BT)

Faber Group has won an AED154m (RM142m) contract to maintain and upgrade facilities and projects at Madinat Zayed – Zone-1 in the Emirate of Abu Dhabi. The work was awarded by the Department of Municipal Affairs for the Western Region Municipality, Faber said. The annual contract, which can be extended for another three years, comes with certain conditions like a bank guarantee and the submission of insurance documents. (BT)

The four-year court battle between KSL Holdings and Danaharta Hartanah Sdn Bhd over parcels of land measuring 1,516 acres that are currently under companies owned by Tan Sri Syed Mokhtar Albukhary ended yesterday with the Federal Court shutting the final door on the Johor-based property developer. The Federal Court also disallowed the company from appealing in the matter. (Financial Daily)

TA Global is looking at more than just hospitality projects in Canada and Australia. “If we decide to do something, future projects in those countries would most likely take the form of JVs,” TA Enterprise’s MD and CEO Datin Alicia Tiah said. (Financial Daily)

KPJ Healthcare expects revenue to hit a record RM2bn in 2012 with more hospital openings. Its chairman Tan Sri Muhammad Ali Hashim said the group is confident of achieving the target based on the favourable performance of the Johor Corp Group and other business strategies including the opening of more hospitals. 

• "We now have 19 hospitals nationwide and are in the process of identifying locations for new hospitals," he said. Under the expansion plan, KPJ Healthcare is looking at either acquiring existing private hospitals or building new hospitals. (BT) 

Supportive International Holdings has signed a strategic cooperation agreement with Digital China Advanced Systems Services Ltd. The deal entails commissioning Digital China to provide technical advisory service in relation to the Value Added Operations Project in Hunan province Chang De municipal in China. Supportive International Holdings will pay 2m yuan to Digital China for its technical advisory services. (BT)