Tasek Corp plans to give up to RM102.97m, or 63 sen/share, to shareholders and holders of its preference shares. The proposed cash distribution will be in the form of a final DPS of 10 sen, a special gross DPS of 20 sen and a capital repayment of 33 sen/share. On completion of the proposed consolidation, Tasek's share capital will consist of RM124.22m comprising 123.89m ordinary shares and 335,000 preference shares. Meanwhile, the company also terminated two deals to sell its stakes in Cement Industries (Sabah) Sdn Bhd and Padu-Wangsa Sdn Bhd for a combined RM104m. The acquisition was terminated after the buyer failed to execute the SPAs on the required date.(BT) Please refer to our results review report on Tasek today for more comments.
Pelikan International Corp announced total valid acceptances and excess application received for the rights Issue were 185.2m right shares, representing an over subscription of 9.2% of the 169.6m rights shares available for subscription under the Rights Issue. (BMSB) This is not a surprise as we had expected at least full subscription of its rights issue. At RM1.10/share rights issue price, this would help raise aroud RM187m gross proceeds for the company.
Kencana Petroleum has been granted an extension until 2 July to implement a 10% private placement. (BMSB) In Jan 10, Kencana raised RM182m through a rights issue. But a private placement is still a possibility as Kencana plans to keep raising cash to boost its reserves and fund eventual acquisitions. An acquisition would further diversify the company’s assets and make it as a player to reckon with in the marine support segment. Based on yesterday's closing price, a 10% private placement would raise RM236m.
GIIG Holdings, controlled by
Tan Sri Syed Mokhtar Al-Bukhary, has roped in
Aluminium Corp of China to co-own and build an
aluminium smelter costing over US$1bn (RM3.44 bn) in Sarawak. The smelting plant has an initial capacity of 330,000 tonnes and will be increased to 1.25m tonnes at a later stage. (BT)
The power supply from
Bakun, which was initially meant for Peninsula Malaysia, may now be transmitted to a US$1bn
aluminium smelter plant in Samalaju Industrial Park as an interim measure until the
submarine cables are completed,” said GIIG Holdings director Shahrir Shariff.
- "The project will be co-owned and developed by three parties. We are in discussion with several parties," Shariff said.
- Shahrir added that he hoped a deal with Sarawak Energy on the PPA would be reached within 2-3 months’ time and that they foresee a three-year period after the signing of the PPA before the plant can be completed. The power pact is for the supply of 600 megawatts. (BT, Financial Daily)
Malaysia’s two biggest
palm oil producers expect higher earnings this year thanks to strong prices for the edible oil. CPO price may rise to RM2,800-3,000/MT this year owing to growing demand from China and India, executive chairman of
IOI Corp, Lee Shin Cheng, said. Tun Musa Hitam, chairman of
Sime Darby, predicted “much higher” earnings than last year, adding that prices had exceeded the company’s forecast. (Bloomberg, Starbiz)
Telekom Malaysia expects 15,000 students of higher learning institutions in Kedah and Perlis to use its "Streamyx Cool Unipack". (Bernama)
Telekom Smart School (TSS) and Zeal Hi Tech have signed MOUs with South Korean elearning solutions provider, Dunet Inc, on IPTV. The Dunet-TSS MOU focuses on IPTV elearning contents and covers activities such as sharing market trends related to e-learning contents and sharing technological know-how f or the development of e-learning contents. (Bernama)
Although competition will be tougher,
Packet One believes the
broadband market is big enough for all currently. "I don't think there's a need for a price war. The market is still quite open, relatively untapped, and plenty of opportunities out there," CEO Michael Lai said.
- With YTL slated to officially launch its wireless broadband services by end-10, and more aggressive broadband push by giants TM and other mobile operators, P1 expects margins to come under pressure this year.
- "We see challenges in margins, but at the end of the day, whether or not your margin can be maintained is dependent on two things, revenue and cost. So, the key thing for us now is to increase our sales, and manage our cost properly," said Lai. (BT)
MISC has established a regional office in Dubai as the company seeks to further boost its role as a leading transportation partner for the Middle East region. MISC president and CEO Amir Hamzah Azizan said the move was based on geography and the company's long-term business plan for its liner services. It also fits in with MISC's strategy to become a leading provider of safe and trusted transportation for the halal industry. (BT)
After 15 years at the helm of Malaysia's biggest company, Tan Sri Mohd Hassan Marican was given a rousing send-off by thousands of
Petronas staff at its headquarters yesterday.
- Hassan, who clocked out at Petronas for the last time, steered the oil company to being one of the industry's most respected and profitable, with operations in more than 32 countries. In fact, 45% of the government's revenue comes from Petronas, which paid RM74bn to the federal and state governments last year. Hassan asked Petronas staff in an e-mail on Monday to support his successor, Datuk Shamsul Azhar Abbas, who will start work today.
- Meanwhile, Hassan has requested for more time to decide on the offer from the government after ending his service with Petronas. It is rumoured that Hassan had been offered the post of special adviser to the Prime Minister on gas. (BT)
UMW Toyota will be initiating a special service campaign from Friday onwards to address the brake issue of Toyota Prius. President Kuah Kock Heng said, “To date, there are over 60 units of the third generation Toyota Prius sold since its launch in Oct-09.” (BT)
Vietnam is considering a lottery project proposed by
Berjaya Corp, according to Ngo Van Tuan, DG of the Ministry of Finance’s department for banking and financial institutions. “Berjaya submitted a lottery project proposal last year and the prime minister has asked that the ministries report to him before end-2Q,” Ngo said. Under current regulations, the government only permits state-owned companies to take on lottery business. (Bloomberg, Financial Daily)
Berjaya Corp has proposed to develop of the country’s first large-scale 10MW groundbased solar photovoltaic (PV) power plant at Bukit Tagar, Selangor, estimated to cost approximately RM180m. Pending and subject to approval of the Feed-in Tariff policy and the project, development is expected to commence in 2H 2010. The plant is slated for commissioning by 2011. (BMSB)
Eastern & Oriental has sold 50% of the 298 units made available for sale from the first block of its RM1.8bn Quayside seafront luxury condos that was officially launched last Saturday. “We are well within our target and we expect interest and sales momentum to be stronger over the next two weeks, straddling the Chinese New Year holidays,” ED Eric Chan said. (Financial Daily)
Malaysia Steel Works (KL) (Masteel) plans to invest RM300m in a downstream expansion project near its existing meltshop in Klang. Masteel said the project was to meet the demand of the growing local and export markets. The expansion would be ready in two years and financed from its own funds and borrowings. It said the feedstock would be the company’s billets produced at the meltshop. (Financial Daily)
MMC Corp says Feizal Ali has tendered his resignation as CEO of MMC International effective from May 3. He also will cease to be a director of MMC from the same date. MMC did not give a reason for his resignation. (BT)
Melati Ehsan Holdings plans to bid for government contracts under the 10MP to grow its business. Melati Ehsan has RM1bn of contracts in hand, of which more than half are government projects. The company is also vying for private development projects, especially from MNCs. It has 120 acres of land in Kota Damansara and recently acquired land in Bukit Tunku. MD Tan Sri Yap Suan Chee said the company is looking to buy more land in the Klang Valley with about RM80m cash in hand. (BT)
Hap Seng Consolidated plans to sell 30% of Hap Seng Star Sdn Bhd to Hong Kongbased Pacific Star Automobile Ltd for RM103.8m cash. Hap Seng Star is involved in the trading and distribution of Mercedes Benz vehicles in Sabah and Sarawak. The price tag for the related-party transaction was based on a PE valuation of 23x of the unaudited aftertax profit of the Mercedes Benz business for FY09. (Financial Daily)
