Monday, September 13, 2010

20100913 1447 Malaysia Corporate News.

Petronas sells 5% of GLNG project to Total
Petroliam Nasional Bhd (Petronas) has entered into an agreement to sell a 5% stake in the Gladstone Liquefied Natural Gas (GLNG) project in Australia to Total, the Australian Associated Press (AAP) reported. Total is the world’s fourth largest listed natural gas producer. At the same time, Santos Ltd, Australia’s third-largest oil and gas producer, stated it would sell a 15% stake in the GLNG project to Total for AUD650m. Upon completion of the transactions, Santos will retain a 45% ownership, Petronas 35% and Total 20%. Santos said the GLNG transaction was the first major investment by Total in an LNG project using unconventional gas anywhere in the world. (StarBiz)

Tanjong gaming arm for sale?
Usaha Tegas Sdn Bhd (UT) is finalising plans to sell the gaming business of Tanjong plc, post the latter’s privatisation, according to investment banking sources. “It is only a question of time. UT is now busy finalising the funding of Tanjong’s privatisation. But once that is settled, gaming will be hived off as the focus is on the power business,” said one banker familiar with the plans. To recap, in late July, a consortium comprising tycoon T. Ananda Krishnan’s private vehicle UT and unnamed parties acting in concert, which together own 47% of Tanjong, made an offer to buy out the firm at RM21.80 a share in cash. The takeover has yet to be concluded, with Tanjong recently extending the closing date for acceptances of the offer to 27 Sept. Meanwhile, it had been reported that around 70% of the acquisition price tag of RM4.7bn to privatise Tanjong would come from the debt market, with a ringgit financing been given priority over USD, although a portion of the deal was still expected to be funded offshore. Bankers also pointed out that after the hiving off of Tanjong’s gaming business, Ananda was likely to relist Powertek Bhd, the power business of the Tanjong group. However, contrary to speculation, Ananda was unlikely to list his oil and gas support services company, Bumi Armada Bhd, anytime soon, sources said. (StarBiz)

Carrefour cuts rivals from bidding for its stores
French retail giant Carrefour has taken rivals Tesco and Japan's Aeon out of the bidding for its Southeast Asian stores, the Wall Street Journal reported yesterday. Carrefour, the world's second-largest retailer after Wal-Mart, hopes to raise USD1bn (RM3bn) from the sale of its assets in Singapore, Thailand and Malaysia, the Journal said citing "people familiar with the matter". Several companies have gone through to the next round of bidding, set for November, including France's Casino Guichard-Perrachon and Thai-owned firms Big C Supercenter PC, Central Group, Berli Jucker and PTT, according to the report. Carrefour chief executive officer Lars Olofsson said in May that he would consider offers for its assets in markets where it was not first or second, the Journal said, raising the prospect of an auction of its stores in the growing region. It cut several companies from the bidding process because they had put in low prices, the Journal reported. (BT)

Loh & Loh joint venture wins RM828m TNB project
Loh & Loh Corp Bhd said a 60:40 joint venture between its subsidiary Loh & Loh Constructions SB and Sinohydro Corp Ltd has received a letter of acceptance from Tenaga Nasional Bhd for the Hulu Terengganu Hydroelectric Project Lot CW2 – Main Civil and Associated Works worth RM828.3m. “The commencement date of the project shall be within 130 days after receipt of the letter of acceptance by the contractor. The period for completion of the project is 1,674 days from the commencement date,” it said in a filing with Bursa Malaysia yesterday. Sinohydro is a well-known Chinese hydropower construction group with operations in 50 countries. It is a state-owned enterprise. (StarBiz)

Splash: Downgrade does not mean default on bonds
With Selangor water players having their debt issuance downgraded by rating agencies recently, Syarikat Pengeluar Air Sungai Selangor SB (Splash) has clarified that the downgrade does not constitute a default on the company’s bonds. The water concessionaire also stressed that the bonds were non recourse to shareholders and maintained the company does not need any new borrowings for its operations. A Splash spokesman said in a statement last Thursday that the downgrade had “severe negative impact” on bondholders and that the damage to investor sentiment could be irreparable. (Financial Daily)

Mah Sing proposes to issue RM325m bonds
Mah Sing Group Bhd has proposed an issuance of up to RM325m nominal value of seven-year redeemable convertible secured bonds and increase in the authorised share capital of the company to RM1bn comprising 2bn shares. In a filing with Bursa Malaysia, Mah Sing said the issue price of the bonds would be determined later and the bonds would be issued on a “bought deal” basis. “The proposed bonds issue will raise gross proceeds of up to RM325m.The gross proceeds will be utilised for land acquisitions, working capital purposes as well as to defray estimated expenses arising from the bonds issue,” it said. (StarBiz)

SP Setia unit buys land in Johor for RM169m
In announcement on Thursday, SP Setia announced that it would be acquiring 259.1 acres of freehold land within the Tebrau Corridor in South Johor, Malaysia, from a private developer called Kelana Ventures SB. The acquisition is expected to be completed in late 2011. (Bursa)

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