Tuesday, July 27, 2010

20100727 0925 Malaysia Corporate News.

CIMB: Shareholders approve acquisition of 19.67% stake in CIMB Niaga. CIMB had received approval from its shareholders to acquire 19.67% stake in PT Bank CIMB Niaga TBK (CIMB Niaga) for RM1.9b from Khazanah Nasional Bhd via the issuance of new shares. The acquisition will increase CIMB stake in CIMB Niaga from 78% to 98%. (Source: The Star)

Kencana: KM1 to boost Kencana's earnings. Kencana Petroleum Bhd's USD150m (RM478.5m) acquisition of the remaining 75% of oil rig KM1 will be completed by the 1st week of August and will contribute positively to the company's bottom line immediately. The acquisition gives Kencana full ownership of KM1 which is currently chartered on a 5 year, RM827m Petronas drilling contract. This contract accounts for about a third of Kencana's existing RM2.4b order book. (Source: The Edge Financial Daily)

Kenmark: Stock staring at Aug 9 suspension. Beleagured Kenmark Industrial Co (M) Bhd said it was very likely that its stock will be suspended on August 9 as it sees no way how the company would be able to furnish its audited financial statements for the 2010 fiscal year within the time required by Bursa Securities. (Source: Business Times)

F&N Holdings: Kirin to buy a stake in parent Fraser & Neave from Temasek. Japan's Kirin Holdings will buy a 14.7% stake in beverage and property conglomerate F&N from Singapore state investor Temasek Holdings for USD953m (RM3.05b) to accelerate its expansion in Asia. Kirin has spent nearly USD5b on acquisitions in the past 2 years to diversify its operations and grow outside its saturated home market of Japan, where it vies for the top spot in beer sales with Asahi Breweries. (Source: The Edge Financial Daily)

MAHB: Inks pact on China airport jobs. Malaysia Airports Holdings Bhd (MAHB) has sealed an initial pact to help provide airport operation, management and technical consultancy for the Yongzhou Lingling Airport in Hunan province and other airports in China. The group signed a memorandum of understanding with Nagamas Enterprise (HK) Ltd (NEL) to explore the possibility of providing the services. (Source: Business Times)

PKA won't pay
The Port Klang Authority (PKA) is set to hold back its final payment of RM222.58m to Free Zone Capital (FZCB), one of the four special-purpose vehicles (SPVs) established by Port Klang Free Zone (PKFZ) turnkey contractor Kuala Dimensi SB (KDSB) to raise funds from the market. Sources said the PKA board had decided not to make the final payment to FZCB in view of its legal suit against KDSB, with a claim totaling about RM1.4bn. (Financial Daily)

Khazanah wins bid for Parkway
Khazanah Nasional has emerged victorious in the battle for control of Asia’s largest hospital chain Parkway Holdings Ltd. This follows the exit of Fortis Healthcare Ltd, who was also seeking to strengthen its foothold in the regional healthcare market. Yesterday, Fortis told the Singapore Stock Exchange that it had accepted Khazanah subsidiary Integrated Healthcare Holdings Ltd’s higher cash offer of SGD3.95 (RM9.25) per share and said it would divest its entire stake in Parkway to the Malaysian government arm. (Financial Daily)

Mudajaya slumps on SC probe report
Shares of power plant builder Mudajaya Group fell for a second day as jittery investors booked in profits from recent sharp gains on a news report that the company had been probed by the Securities Commission (SC). Mudajaya told the exchange yesterday it “has not been directly queried by the SC” but assured investors that “it is more than willing to extend its full cooperation” if queried by the regulator. “The board of Mudajaya is not aware of the nature of the complaint about the company by anyone whosoever,” it said in reply to the exchange’s query on the report published over the weekend. (StarBiz)

GPRO plans to acquire precision casting AB Tech for RM140m
GPRO Technology plans to acquire precision casting and injection moulding specialist AB Technology SB (AB Tech) at an indicative price of RM140m. GPRO said the proposed acquisition would be fully satisfied by the issuance of new GPRO shares at an issue price of 10 sen. Yesterday, GPRO signed a heads of agreement to acquire AB Technology from Grand Intergroup SB and Whatever Investment Pte Ltd. (Financial Daily)

Leong Hup plans RM30m broiler farm
Integrated poultry company Leong Hup Holdings plans to spend up to RM30m this year to set up a broiler farm in the Bio Desaru Food Valley project in the Kota Tinggi district. Executive director Tan Sri Francis Lau Tuang Nguang said the farm would be located on 72.84ha dedicated for poultry farming activities within the 3,642.17ha Bio Desaru Food Valley, the first big-scale organic food farm in the country. “We are investing between RM20m and RM30m in the farm, which will have the capacity to produce 500,000 to over one million fowls within the next three years,’’ he said. Like other chickens reared in Leong Hup’s farms nationwide, the birds at the Bio Desaru Food Valley farm would be bred in broiler houses, Lau said. (StarBiz)

B-Retail IPO oversubscribed
Berjaya Corp (BCorp) said that as at the closing date of the initial public offering of Berjaya Retail (B-Retail) at 5pm on 22 July, applications for the shares by BCorp minority shareholders were oversubscribed by 17.52 times. It told Bursa Malaysia that a total of 7,562 applications for 55.57m 50 sen shares were received for the 3m shares reserved for applications by the minority shareholders. (StarBiz)

KBB under PN1 after defaulting payments on RM16m debts
KBB Resources has been designated as an affected listed issuer pursuant to Practice Note No 1/2001 (PN1) of the main market listing requirements of Bursa Malaysia Securities due to repayment default. KBB’s board of directors said the company and seven of its wholly-owned subsidiaries were in default of 18 banking facilities as they had not been able to make the repayments. The total amount owed to a number of financial institutions, both local and foreign, was about RM16.1m as of 21 July 2010. KBB said it had initiated a debt restructuring plan and had submitted an application to the Corporate Debt Restructuring Committee (CDRC) in respect of the restructuring scheme. (Financial Daily)

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