Tuesday, June 8, 2010

20100608 1153 Malaysia Corporate News.

RM30bn MRT plan
A special task force has been set up within the Cabinet Committee on Public Transport to study a proposal for a new three-line mass rapid transit (MRT) system costing more than RM30bn. Gamuda and MMC Corp had submitted a joint proposal to the Government for a new MRT system to improve public transport in the Klang Valley. While it aims to integrate the monorail and light rail transit (LRT) systems, the MRT lines will also connect the northwest and southeast of the Klang Valley. The committee is chaired by Prime Minister Datuk Seri Najib Razak. One of the lines will run through the Sungai Buloh, Kota Damansara, Kuala Lumpur and Cheras until Kajang. Another line will connect Sungai Buloh, Kepong, Kuala Lumpur and Serdang. The third line will loop around KL’s central business district. (NST)

CIMB to be lead adviser for Petronas’ petrochem IPO
CIMB Investment Bank is said to have secured the mandate to act as lead adviser for the initial public offering (IPO) of Petroliam Nasional’s (Petronas) petrochemical business, according to sources from the investment banking industry. Foreign banks that would also play an advisory role in the IPO included Deutsche Bank and Morgan Stanley. It is understood that the listing of Petronas’ petrochemical business is slated to take place towards the end of the year, after the planned September listing of Malaysia Marine and Heavy Engineering SB (MMHE), a wholly-owned unit of national carrier MISC Bhd, which in turn is a subsidiary of Petronas. Petronas’ petrochemical business registered revenue of RM13bn for the year ended 31 March 2009. (StarBiz)

Berjaya Retail gets SC nod for listing
The Securities Commission (SC) has approved the proposed listing of Berjaya Retail, the listing vehicle of Singer (M) SB and 7-Eleven Malaysia SB, on the Main Market of Bursa Malaysia. The SC also approved the proposed distribution of dividend-in-specie comprising ordinary shares in Berjaya Retail to entitled shareholders of Berjaya Corp in relation to the proposed listing. SC’s approval of the proposed listing is subject to several conditions, including the enhancement of Berjaya Retail’s disclosures in the listing prospectus with regard to, among others, details of the assumption of debts by Berjaya Retail, the irredeemable convertible preference shares to be issued, as well as certain risk factors. The commission requires Berjaya Retail to allocate 50% of the public spread requirement to bumiputra investors, including the shares offered under the balloted public offer portion, of which 50% are to be offered to retail bumiputra investors. (StarBiz)

No Bank Negara approval for Affin-EON Cap talks
The much-awaited counter offer by Affin Holdings for EON Capital seems to have hit a snag as Bank Negara is not giving permission to the former to begin negotiations. Affin had on 4 May submitted an application to Bank Negara to seek its approval to commence negotiations with EON Cap. There was also speculation that Affin was planning on making an offer for EON Cap through a general offer for the shares of the latter, at a price of around RM7.50 per share, higher than the existing offer by Hong Leong Bank (HLB). HLB’s cash offer is to buy the assets of EON Cap, which requires only a simple majority of EON Cap shareholders to approve. Bank Negara had not given any reason for its decision as at yesterday evening and declined to elaborate on the matter. (StarBiz)

Government yet to issue sport betting licence
The Government has yet to issue a sports betting licence and it has also yet to finalise the terms of the licence to Ascot Sports SB, says Prime Minister Datuk Seri Najib Razak. He said this in a written reply in Parliament on Monday, 7 June. Najib added the Government was still obtaining feedback from various quarters on the proposal to license sports betting in Malaysia "with the view of reducing and subsequently eradicating unlicensed betting in Malaysia". It was earlier reported that Ascot Sports had obtained the licence to run sports betting in Malaysia, prompting strong criticism from the opposition and certain quarters concerned about the social implications of legalised sports gambling. (Financial Daily)

RM146m net loss for Kenmark in Q4
After over a week of upheaval, Kenmark Industrial Co (M) reported a shocking set of financial results with a net loss of RM146m for its fourth quarter ended 31 March, compared with a net loss of RM84,000 in the previous corresponding period. Despite that, some stability has returned at its Port Klang plant where hundreds of its employees reported for work yesterday. The reasons for such a big loss in the quarter were lower revenue, higher cost of sales, provisions for doubtful debts and impairment of assets by certain subsidiaries, the furniture maker told Bursa Malaysia in a statement yesterday. (StarBiz) 
Thai Bourse: CIMB listing in Bangkok to be delayed
The listing of Malaysia’s CIMB Group would be delayed for a few months from June, the Stock Exchange of Thailand (SET) said yesterday. “CIMB needs more time to study legal issues clearly,” SET chief marketing officer Vichet Tantiwanich told reporters. The Malaysian bank owns 93% of CIMB Thai Bank. “There will always be legal issues as part of any listing process, especially in this particular case where two separate jurisdictions are involved. However, we had deferred the listing primarily to wait for a more conducive environment for us to achieve our main objective of enhancing brand recognition,” said Effendy Shahul Hamid, CIMB Group head of group corporate communications said. (StarBiz)

Ingress units get RM72m job
Ingress Corp said the unincorporated joint venture between its subsidiaries, Ramusa Engineering SB and Multi Discovery SB, has received a letter of acceptance for a RM72m project from Tenaga Nasional. The contract involves the design, supply, erect and commissioning in relation to the proposed 275/132kV transmission line quadruple circuit between Kampung Pandan and Ampang East. Ingress said the 18-month project was expected to start in the third quarter of its current financial year ending 31 Jan 2011. (StarBiz)

BHIC buys into defence electronic products maker
Boustead Heavy Industries Corp (BHIC) subsidiary BHIC Defence Technologies SB (BHIC-DT) has proposed to acquire a 51% stake in defence electronic products maker Contraves Advanced Devices SB (CAD) from Rheinmetall Air Defence AG (RHAD) for an estimated RM26m. BHIC-DT on Monday, 7June inked a share sale agreement with RHAD for the proposed acquisition of the stake comprising 2.55m shares of RM1 each in CAD. RHAD will retain a 49% stake in CAD, and maintain operational management. Established in 1983, CAD's principal activities include the manufacturing of industrial printed circuit board assemblies (PCBAs) and box-build assemblies, production of modules, electronic subassemblies, antenna and electronic time relays for the automotive industry, assembly of semi-rigid and flexible RF cables and service and maintenance of military and defense equipment. (Financial Daily)

Retail : Sundry sale threat. Some 20,000 retailers nationwide will stop selling sugar, cooking oil and flour from June15 because they are unhappy with the Governments?s ruling that they need a license to sell these essential items. However, Domestic Trade, Co-operatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob is determined to go ahead with the license requirement despite the "threat", saying this was to check hoarding. (Source: The Star)

Crecom Burj: Crecom unit signs RM17b deal to buy aircraft. Crecom Burj Resources Ltd (CBRL), a wholly-owned subsidiary of Crecom Burj Bhd, has signed a USD5b (RM16.7b) purchase agreement with Russia-based IRKUT Corp for the acquisition of 50 MC21 passenger aircrafts. (Source: The Star)

External reserves : Decreased slightly in the second half of May 10 to RM312.2b (USD95.5b) as at 31 May 10 from RM314.2b (USD96.1b) on 14 May 10. The latest reserve amount is equivalent to 8.3 months of retained imports and 4.4 times short-term external debt. (Source: Bank Negara) 

No comments: