Thursday, December 31, 2009

20091231 1035 Malaysia Corporate News.

Hunza Properties has bought four plots of freehold land in Penang for RM82m. The acquisition will enable the group to increase its landbank for future development and/or investment, at the same time continue its expansion plans in Penang. (BT) Please refer to our QT for further comments.

The race is on for Malaysian companies to win the hand of General Motors (GM) after the US carmaker ended a pact to sell Chevrolet cars in Malaysia with DRB-HICOM. Those rumoured to be in contention are Sime Darby, the Naza Group and Permaju Industries. Under its partnership with DRB-HICOM, Chevrolet sales were more than 3,000 units in a good year. However, they have since fallen to fewer than 1,000 units. (BT)

Proton has confirmed that its car-scrapping programme, Proton Xchange Programme, has been discontinued as the funding has been fully used up. The national car manufacturer said it had received a total of 25,862 applications from 10 Mar to 31 Oct, exhausting the funds provided by the government's economic stimulus plan even before the given yearend period. (Bernama)

DRB-Hicom aims to introduce its own hybrid car by 2012. Group director of automotive, Datuk Nik Hamdam Nik Hassan, said the company was currently in talks with three potential partners to manufacture the car and hoped to finalise the deal next year. On the discontinuance of existing JV between DRB-HICOM and GM, Nik Hamdam said, "We are having difficulty to agree on certain point of their business model. Both of us have different objectives." He said DRB-HICOM was looking to bid for stake in Proton once the opportunity arose. (Bernama)

The Naza Group targets to achieve sales of 25,970 units next year with major contribution coming from Kia vehicles. "2010 will be an exciting year for the Naza Group. We will be launching several Kia and Peugeot models that will appeal to all segments of the market," joint executive chairman SM Nasarudin SM Nasimuddin said. "Additionally, the domestic economy is expected to return to growth in 2010, which will be an added boost to our business and the overall automotive industry," he added. (Bernama)

Work on the Pahang-Selangor raw water transfer project has picked up pace with the government opening the tender for the Kelau Dam and related works. The bid documents will be available from Jan 5 to 19 and the closing date is on Mar 9. (Financial Daily)

CIMB Group is selling up to 65 properties that house its banking operations to the Employees Provident Fund (EPF) for RM302.4m in a related-party sale and leaseback deal. The group said the sale will raise cash for CIMB Bank's working capital, reduce its risk-weighted assets and property risks. The group is expected to make a gain of RM171m from the sale. (BT)

Local airlines are hopeful that next year will bring better days for the airline industry, with plans for capacity growth and aircraft delivery underway. Malaysia Airlines (MAS) will look to increase flight frequencies and add new destinations on the back of improving passenger traffic movement. Meanwhile, AirAsia group CEO Datuk Seri Tony Fernandes is optimistic about prospects for next year, with forward bookings looking good for Jan-10 and Feb-10. While AirAsia plans to introduce flights to new destinations in Indonesia, India and Maldives, Fernandes said the focus for the group's expansion will be with associate airlines, Thai AirAsia and Indonesia AirAsia. (BT)

The proposed partnership between AirAsia and Jetstar is nearing fruition after a year of talks and the deal will be announced in the first week of Jan-10. A media conference has been scheduled for Jan 6 in Sydney where both parties and Qantas will announce the details of a strategic agreement and how these parties will work “innovatively together’’ so as to drive greater cost efficiencies. (Starbiz)

Tune Talk expects to hit the 500,000 subscriber mark in two weeks, which is half of its target for its first year of operation. “We are ending 2009 with a resounding success and we believe 2010 will be even better. We attribute the overwhelming public response primarily to our unconventional marketing and communications strategy including our exciting Web-based approach,” said Tune Talk CEO Jason Lo. (BT)

MMC Corp, owner of both Port of Tanjung Pelepas (PTP) and Johor Port, is still waiting for the government's decision on the plan to rationalise their operations. According to an industry source, the outcome of recent talks on the issue will be submitted to the Transport Ministry soon. "The rationalisation proposal will also provide manufacturers savings in costs through more efficient port operations," the source said. (Bernama)

Media Prima (MPB) has to date received acceptance of more than 92.9m shares or 42.77% from New Straits Times Press (NSTP) shareholders as a result of the proposed takeover offer. This gives MPB 86.1% of the voting shares in NSTP. (Bernama)

Malaysian glove makers could continue exporting to the US after the Court of Appeals ruled in favour of the manufacturers over a patent tussle with giant firm Tillotson Corp. (Financial Daily)

Port operator Integrax has signed a deal with Vale International to provide transshipment services for the Brazilian mining company. The deal means that Integrax would have to invest about RM200m to expand the marine infrastructure and handling equipment at the terminal. Integrax will fund the expansion with internal funds and loans. It may even tap the capital markets for funds. (BT)

Rimbunan Sawit (RSB) plans to buy interests in nine plantation companies in Sarawak for RM286.1m to grow its plantation land bank. The purchase will be paid through the issuance of 28.33m RSB shares and 191.75m new irredeemable convertible preference shares (ICPS) at RM1.30/share. The completion of the deal will see RSB's total plantation land bank more than double from 31,645ha to about 91,000ha. (BT)

Kumpulan Hartanah Selangor (KHSB) said the Selangor state government has agreed to provide it with a grant of RM115m to relieve its burden. The grant could be in the form of land given to KHSB for free or as payment for claims made by the state. (BT)

Sapura Industrial, an automotive parts and components maker, says it will continue to refine quality and push for greater international standards to further penetrate overseas market. The company, which secured several customers recently from India and Brazil, is also looking at new markets in the Middle East. (BT, Bernama)

Ta Ann Holdings will further expand its oil palm plantations, especially in Sarawak, via landbank acquisitions, said group MD Datuk Wong Kuo Hea. The group has been on the lookout for available landbank to expand its existing 30,000ha landbank in an effort to become a medium-size oil palm plantation player. (Starbiz)

Shares of Sarawak Energy will be delisted from 5 Jan following the completion of its earlier VGO exercise. (Starbiz)

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