Monday, September 27, 2010

20100927 1105 Malaysia Corporate News.

Sarawak offers RM6bn for Bakun hydroelectric project
The Sarawak government has offered RM6bn to buy over the Bakun hydroelectric project from the federal government, said Sarawak Chief Minister, Tan Sri Abdul Taib Mahmud. Abdul Taib said the negotiations on the matter (the state buying over the project) were still ongoing and that a final decision had yet to be reached. According to him, the federal government had yet to put a price tag on the project, which is estimated to have incurred costs exceeding RM7.3bn. (Malaysian Reserve)

Sunway to launch RM1.1bn project in Singapore
Sunway Holdings Bhd will launch its third property project with a gross development value (GDV) of RM1.1bn in Singapore next week, said managing director Yau Kok Seng. Yau said the 1.92ha project, called Vacanza @ East, would be located at Jalan Senang, District 14, a freehold land near Pan Island Expressway. “We expect good response for the project,” he said after signing a joint-venture (JV) agreement with the Dasa Group of Sri Lanka here yesterday. He said profit margin in Singapore was usually 12%. The project will comprise eight blocks of 12-storey buildings, which will have 500 units. Sunway will also launch another project, with a GDV of SGD370m in the second half of 2011 in Singapore. It will comprise 17 blocks of five-storey residential development. The JV agreement signed yesterday was between Sunway unit SunwayMas Sdn Bhd and Dasa Group for a RM250m mixed development project in Bambalapitiya, Colombo. A JV company will be formed in Sri Lanka, with SunwayMas having a 65% stake and remainder taken up by Dasa Group. SunwayMas would fund its investment in the JV company through bank borrowings and internal funds. (StarBiz)

YTL Cement to buy out Perak-Hanjoong
YTL Cement Bhd has offered to buy a 35.16% stake in Perak-Hanjoong Simen SB from Gopeng Bhd for RM200m in a move that will see the company consolidating its position in the building material industry. YTL Cement said Gopeng had, on 24 Sept, accepted its offer to buy all 117.74m ordinary shares of RM1.00 each, with a formal sale and purchase agreement to be entered in due course. (Malaysian Reserve)

Karambunai denies plan to build resort casino
The surge of Karambunai Corp Bhd (KCB) shares since speculation arose it might get a casino licence as part of a proposed integrated resort (IR) at its existing resort in Sabah has created excitement in the market but the company last Friday poured cold water on any such move. “KCB has not up to date submitted any official proposal to the Malaysian government, nor has it penned any written documents with any other third parties in respect of any plan to build a casino in Karambunai,’’ the company told Bursa Malaysia. KCB said since it was a key player of tourism in Sabah, its general manger of the Nexus Karambunai Hotel was invited to be a member of Pemandu’s NKEA tourism lab. “During the lab sessions, KCB’s representative has been discussing and disclosing drawings in Karambunai with members of the private and public sectors as to the manner in which Karambunai as a member of the private sector may assist in this direction,” it explained. “Pemandu is free to use any drawings conducted in the lab sessions, but chooses drawings from Karambunai which has copyrights source & status. To KCB, these chosen drawings are merely meant as a plan. The recent public information simply mentions the existence of a IR in Kota Kinabalu Sabah and has not disclosed and named specifically KCB as a party. (StarBiz)

Azman Hashim to take MCM private
ACE market firm MCM Technologies Bhd’s major shareholder Tan Sri Azman Hashim has made an offer to take the company private at 13 sen a share, according to statement to Bursa Malaysia last Friday. The offer, to be satisfied entirely by cash, came in at 13% higher compared to MCM’s pre-suspension price of 11.5 sen. Azman, through Amcorp Group Bhd’s wholly owned unit Mezzanine Capital (M) Sdn Bhd controlled a 62.75% stake in MCM Tech. “The offeror has no intention to maintain the listing status of MCM Tech” assuming that he gets 75% control of the company, documents filed with the exchange on Friday showed. MCM Tech said it received the offer on Thursday and the announcement was posted on Bursa during the mid-day trading break. (StarBiz)

Proposal to resolve bondholders’ worry
A satisfactory proposal is expected be tabled in two week’s time to resolve concerns of bondholders of the Selangor water sector, especially in the area of compensation or assistance, a bondholder told StarBizWeek. An informal meeting was held last Friday between the representatives of the state and federal government and stakeholders in the state’s water sector, in particular bondholders. A bondholder said after the meeting: “We look forward to a positive outcome from this meeting in two week’s time. We believe this meeting today has been fruitful to enable the government to fully appreciate our plight.” He said with the recent downgrade on debt papers by Malaysian Rating Corp Bhd and RAM Ratings in the water sector it had triggered a higher risk weighting for the players. (StarBiz) 

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