Friday, August 20, 2010

20100820 1102 Malaysia Corporate News.

US stocks retreat, treasuries gain on recovery concerns; oil drops
Stocks fell, erasing a three-day gain for the Standard & Poor’s 500 Index, after manufacturing in the Philadelphia area unexpectedly shrank and jobless claims rose, spurring concern the economic recovery is in jeopardy. Treasury two-year yields slid to a record low. The S&P 500 slipped 1.7% to 1,075.63 at 4 pm in New York, its lowest close in a month. The Dow Jones Industrial Average slid 1.4% to 10,271.21. Yields on two-year notes dropped as low as 0.4796%. Gold futures reached their highest price since 1 July and wheat jumped 3.7%. Crude oil declined 1.3% to USD74.45 a barrel. US equities opened lower after initial jobless claims rose by 12,000 to 500,000 in the week ended 14 Aug. Stocks extended losses as the Federal Reserve Bank of Philadelphia’s manufacturing gauge slumped to the lowest level in 13 months. Europe’s benchmark index erased earlier gains triggered when Germany’s central bank raised its forecast for economic growth. (Bloomberg)

Kwong Hing buys Menara Pan Global
Property developer and manager Kwong Hing Group has bought Menara Pan Global, located within the Golden Triangle, for an estimated RM160m from PanGlobal, sources say. Menara Pan Global, a 38-storey building in Jalan Puncak, off Jalan P. Ramlee, houses 18 levels of office space with a total built-up of 400,000 sq ft. The 18-year-old building also houses nine levels of hotel suites operated by Pacific Regency, while another eight levels have a total of 420 parking bays. A source told Business Times that Kwong Hing paid a deposit for the purchase last week. (BT)

MMHE expected to list on Bursa by October
MISC, the shipping arm of Petronas, says engineering and construction unit Malaysian Marine and Heavy Engineering SB (MMHE) is on track to a listing by October. MISC president and chief executive officer Datuk Nasarudin Md Idris did not say when the listing prospectus would be launched. "Yes, the target (to list MMHE in the fourth quarter) is still there. Hopefully, we can do it by end-October," he said after MISC's AGM in Kuala Lumpur yesterday. Asked if MISC had completed the bookbuilding and pricing for the initial public offering (IPO), Nasarudin said: "We have not even launched the prospectus for MMHE and we have yet to go to the EGM for MISC to seek shareholder approval. (BT)

TMC Life chief explains share sale, plans to stay
The chief of TMC Life Sciences Bhd says he sold all his shares in the fertility treatment specialist because the new investors would grow the group further. Managing director Datuk Dr Colin Lee Soon Soo also expects to stay on with the group, and business to be better with its turnaround plan. Dr Lee and his brother sold their entire stakes, or a quarter of TMC, to Singapore billionaire Peter Lim Eng Hock this week. Lim also bought another 4.6% stake, bringing his tally to 29.6%. This makes him the second largest shareholder, after Tan Sri Vincent Tan Chee Yioun, who owns about 31% of the company. "First of all, I disposed of my stake to an investor who sees the intrinsic value and potential of TMC. I have built the company from a fertility centre to an established healthcare centre offering various services. At the same time, I can continue to put in my best efforts to grow the company, especially in the fertility centre, a niche segment that has been our strength all along and offers the highest margin," Dr Lee told Business Times. (BT)

Lion Group to invest RM500m in iron ore business
Lion Group is prepared to invest RM500m to set up an iron ore mining operation in Pahang or Terengganu as global ore prices have soared while competition has increased substantially with the liberalization of the sector. The country’s biggest steel products maker is negotiating with the state and Federal Government on the proposal and if approved, the group via one of its listed units, could start work within 6 months, according to its chairman Tan Sri William Cheng. (Malaysian Reserves)

HLBB still committed to EONCap
Hong Leong Bank (HLBB) is still committed to its proposed RM5.06bn takeover of EON Capital (EONCap), despite delays by the latter in obtaining shareholder approval at an EGM. HLBB group managing director and chief executive Yvonne Chia said the bank had already obtained regulatory approvals from the Ministry of Finance to proceed with the deal and that indicated the seriousness of HLBB in acquiring the entire assets and liabilities of EONCap. In an announcement to Bursa Malaysia yesterday, HLBB said it would allow EONCap to convene an EGM to obtain shareholders’ approval for the proposed takeovers in the targeted bank by 30 Sept. The earlier deadline for EONCap to convene its EGM in relation to the proposed deal was set for today. (Financial Daily)

Media Prima to focus on tie-ups Media Prima will focus on tie-ups with foreign media companies as part of its overall growth strategy, its chief said. Group managing director Datuk Amrin Awaluddin said that as a step towards this, the company had recently formed a partnership with Indonesia’s Surya Citra Televisi, for joint content production and sharing of artistes. Media Prima also has a similar working relationship with Singapore’s Media Corp, which it had formed in 2007. “By doing this, we get to share our content, costs and be able to reach a wider range of viewers plus there’s no element of heavy equity investment,” he said. He added the company would not be making overseas equity investments anytime soon. (StarBiz)

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