Wednesday, October 27, 2010

20101027 0947 Malaysia Corporate News.

RM4.50-RM5.20 a share for Petronas Chemicals IPO: Sources
The Employees Provident Fund and Kumpulan Wang Persaraan will be "cornerstone" investors in the IPO, buying a combined 445m shares, according to the term-sheet. Petronas Chemicals Group, the petrochemicals unit of state oil company Petroliam Nasional (Petronas), aims to raise between USD3.7bn and USD4.2bn (RM11.5bn and RM13bn) in Malaysia's biggest initial public offering (IPO), two people familiar with the matter said. Banks advising on the sale set an indicative price range of RM4.50 to RM5.20 per share for institutions late Monday, they said, speaking on condition of anonymity. Two Malaysian pension funds will come in as key investors, according to a term-sheet e-mailed to fund managers. (BT)

Talks on Bakun may wrap up mid-2011
Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui expects negotiations between the Finance Ministry and the Sarawak state government on the sale of the Bakun hydropower project to conclude by mid-2011. "I don't know the details but they are still in talks. The Bakun dam is scheduled to generate power by mid-2011. I would expect it (the sale) to conclude by then," Chin told reporters after delivering a keynote address at the ABB Executive Forum in Kuala Lumpur yesterday. Currently, Malaysia's energy mix is dependent on natural gas and coal. In view of diversification of energy mix, nuclear power is seen as an energy source post- 2020. Chin reiterated that the Cabinet had approved the setting up of a nuclear power plant and the Economic Council had given the ministry the go-ahead to start identifying suitable sites. (BT)

One mega Islamic bank this year
Bank Negara will announce one mega Islamic bank by this year under its plan to issue up to two mega Islamic bank licences. “We will announce one mega Islamic bank,” governor Tan Sri Dr Zeti Akhtar Aziz said yesterday. It was previously reported that Malaysia has shortlisted two foreign banks to be licensed as mega Islamic banks with a minimum capital of USD1bn each under the Government’s financial sector liberalization measures announced last year. (StarBiz)

Malaysia-India trade pact
Malaysia will sign today a bilateral trade agreement with Asian economic giant India, paving the way for strong trade and investment ties. The two countries recently concluded the Comprehensive Economic Cooperation Agreement (Ceca), which had been negotiated for the past two years. Prime Minister Datuk Seri Najib Razak and his Indian counterpart, Dr Manmohan Singh, will witness the "lock in" of the pact today. International Trade and Industry Minister Datuk Seri Mustapa Mohamed and Indian Commerce and Industry Minister Anand Sharma will sign on behalf of their respective countries. According to the Ministry of International Trade and Industry, the agreement will also stipulate the three main timelines for the Ceca. For instance, the legal aspects have to be cleared by end-November and the formal Ceca has to be signed by 31 Jan next year. The Ceca itself must be in force on 1 July. India, which ranks as Malaysia's 12th largest trading partner, expects trade with Malaysia to jump 50% to USD15bn (RM46.5bn) by 2015 with the trade pact in place. (BT)

Equine Capital to sell Wisma KLIH for RM58m
Equine Capital is selling Wisma KLIH for RM58m, the bulk of which will go towards the repayment of its bank borrowing. In a filling with Bursa Malaysia yesterday, Equine said its wholly owned subsidiary Kuala Lumpur Industries (KLIB) had entered into a sale and purchase agreement with wonderful vantage SB, a company engaged in property acquisition and development. The RM58m price comprises RM48m for the freehold property and RM10m for renovation and refurbishment, it said. (Financial Daily)

Court declares MTD deal valid
MTD Capital told Bursa Malaysia yesterday that the Philippine Supreme Court has declared as valid and constitutional the supplemental toll operation agreement for MTD’s South Luzon Toll Expressway project. However, the court declared void and unconstitutional clauses that said that the Toll Regulatory Board had to compensate MTD’s South Luzon Tollway Corp/the Philippine National Manila Toll Expressway Systems Inc for its loss of revenue resulting from the non-implementation of the approved authorized toll price and toll rate adjustments. Any party wishing to appeal the decision has 15 days from 25 Oct. Trading of MTD shares was suspended until 5pm yesterday and will resume trading today at 9am. (StarBiz)

Malaysia plans sukuk for public to spur trade
Malaysia plans to let issuers sell to individual investors sukuk that can be traded on the local stock exchange as the Government seeks to reverse a 24% decline in sales in the world’s biggest market for Islamic bonds. Bursa Malaysia, the exchange operator, was working with regulators on rules to enable companies to issue Islamic debt that would be affordable to the public, chief executive officer Datuk Yusli Yusoff said in an e-mailed reply to questions last week. Issuance of the securities fell to RM19.8bn this year from RM26.2bn in 2009, the steepest drop since 2003, according to data compiled by Bloomberg. (StarBiz)

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