Monday, July 12, 2010

20100712 1127 Malaysia Corporate News.

Gaming: NFOs to lobby for lower prize payouts.
While 4D lottery prize payouts remain unchanged for now, number forecast operators (NFOs) are said to be lobbying for it to be reduced. Industry sources said three NFO operators are in the midst of lobbying the Finance Ministry to reduce the 4D first prize payouts by RM200. This would bring the current payout ratio for every RM1 bet to RM2,300 for the first prize of "4D Big" and RM3,300 for "4D Small". NFOs presently pay out RM2,500 and RM3,500 for those bets, respectively. (Source: The Star)

Gamuda, MMC: 12 weeks to conduct RM36b MRT feasibility study.
The feasibility study on the proposed RM36b mass rapid transit (MRT) system by Gamuda Bhd and MMC Corp Bhd is expected to be presented to the Government in about 3 months time, said a source familiar with the matter. It was earlier reported that the Government had appointed 2 independent consultants - Minconsult Sdn Bhd and Andercon Technologies Ltd - to carry out the study. (Source: The Star)

Markets: 3rd-party insurance draft will be sent to Govt in Dec.
Bank Negara will submit the final proposal for a new basic 3rd-party motor cover scheme framework to the Government in December. In a statement yesterday, the central bank said it had, together with the Ministry of Finance, completed initial consultation sessions on the proposed framework with key stakeholders in April. (Source: The Star)

Port: Potential RM1.5b investment from Mideast.
Middle Eastern investors may invest some RM1.5b in a petroleum tank farm and halal industrial park in Penang Port. Penang Port Sdn Bhd (PPSB) chairman Datuk Seri Dr Hilmi Yahaya yesterday said potential investors have approached PPSB to set up shop in the port area to tap the export potential of the Indonesia-Malaysia-Thailand Growth Triangle. (Source: Business Times)

Tanjong: Bidding for new power projects.
Tanjong plc is hoping that some of its bids for new power projects will come to fruition over the next few quarters. In the meantime, earnings from its existing power assets are expected to remain relatively resilient although overseas earnings, denominated mostly in US dollars, are hurt by the stronger ringgit. (Source: The Edge Financial Daily)

Strategic partner to enhance Scomi Marine’s coal division.
Scomi Marine Bhd will see the emergence of a strategic investor to enhance the group’s coal handling operations, said a source. The investor, who will enter the company as a strategic partner, is expected to expand the coal handling businesses of the marine transport company regionally. (Malaysian Reserve)

Dubai World property arm sells off Malaysia stake.
A property arm of struggling state conglomerate Dubai World is backing out of a plan to build luxury homes in Malaysia as it looks to shore up its finances. The cash-strapped company's Limitless division is selling off its stake in a partnership with Malaysia's Bandar Raya Developments to develop waterfront land in the southern city of Nusajaya. Limitless will generate about USD23.8m in the deal, according to a regulatory filing on Malaysia's stock exchange. Limitless said in a statement Sunday that it continues "to review our business activity to reflect market conditions." The company's parent Dubai World needs cash as it works to pay back USD23.5bn in debt. (Associated Press)

Awaiting right suitor for Transmile.
Pos Malaysia Bhd is keen to sell its 15% stake in Transmile Group Bhd but the challenge lies in finding an investor that can give the latter a new lease of life. "We want to sell if we can sell. But because it is a PN17 (Practice Note 17) company and we have a 15% block, we need somebody who can come in and pump new business into Transmile and make something out of it," group managing director and chief executive officer Datuk Syed Faisal Albar told Business Times in an interview last Thursday. He added that there were no buyers in the open market even if Pos Malaysia were to sell on a daily basis due to Transmile's financially-troubled status. "So we are just going to hold currently," he said. Transmile, an air cargo operator which suffered a financial scandal in 2007, has a new management and board that are required to do a debt restructuring to regularise its financial position. The challenge for Transmile is in it utilising the landing rights that it has and increasing its business volume, said Syed Faisal. (BT)

Japan’s SMBC unlikely to buy into RHB Cap.
Sumitomo Mitsui Banking Corp (SMBC) of Japan is unlikely to buy part of the Employees Provident Fund’s (EPF) 57% stake in RHB Capital Bhd (RHB Cap). SMBC was one of five foreign banks that were given commercial banking licences in the country last month as part of Bank Negara’s aim to liberalise the financial sector. The EPF is said to be on the lookout for buyers to reduce its stake in RHB Cap, as under regulatory requirements it can only hold a 35% stake in the banking group. The pension fund had obtained an extension of time from Bank Negara until June next year to do so. (StarBiz)

F&N weighs move on cash.
Fraser & Neave Holdings Bhd (F&N) will consider returning to shareholders part of its RM1bn cash reserves that it will have after disposing of its glass-bottling division, said chief executive officer Tan Ang Meng. “If the board is unable to find viable opportunities to use the funds, we will consider returning part of the cash after taking into consideration future capital expenditure and working capital needs,” Tan said in an email reply to StarBizWeek queries. He said F&N would take between 12 and 24 months to evaluate any business growth and expansion initiatives including possible mergers and acquisitions. On possible acquisitions, Tan said: “Food and beverage is our core business and we will focus on that.” Early this week, the group obtained shareholders’ approval to divest Malaya Glass Products Sdn Bhd for RM738.6m. On completion of the sale, F&N is expected to have cash reserves of over RM1bn. (StarBiz)

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