Tuesday, January 11, 2011

20110111 1004 Malaysia Corporate Related News.

SapuraCrest: Gets RM750m loan. SapuraCrest Petroleum Bhd's wholly-owned subsidiary, Aurabayu Sdn Bhd was granted a syndicated Islamic financing facilities of up to RM750m comprising ringgit Malaysia and US dollar denominated tranches from Maybank Investment Bank Bhd. Maybank Investment acted as the mandated lead arranger and bookrunner. (Source: The Star)

Integrax: Perak allows Vale of Brazil to build its jetty in Lumut. Vale International SA has been allowed by the Perak state government to construct its own jetty in Lumut to accommodate its proposed iron ore transshipment project. Vale was originally supposed to use Integrax Bhd's Lekir Bulk Terminal (LBT), but the facility upgrade has been on hold since 2009 due to the feud between two brothers who hold a combined 37% stake in Integrax through Halim Rasip Holdings. (Source: The Star)

Property: Tambun Indah IPO oversubscribed by 14.9x. Property developer Tambun Indah Land Bhd's initial public offering (IPO) of 11.1m shares was oversubscribed by 14.9 times where 10,751 applications for 175.7m shares with a total value of RM123m were received. (Source: The Edge Financial Daily)

Construction: Benalec oversubscribed by 4.9times. Benalec Holdings Bhd, which will be listed on the Main Market of Bursa Malaysia, has received an oversubscription rate of 4.92 times for the 36.5m shares made available for public subscription. (Source: The Edge Financial Daily)

Plantation: Planters appeal to abolish windfall profit levy. Malaysian oil palm planters will appeal collectively to Prime Minister Datuk Seri Najib Tun Razak to abolish the windfall profit levy on crude palm oil (CPO) after their requests were turned down by the Finance Ministry recently. The joint appeal is expected to be made by the Malaysian Palm Oil Association (MPOA), Malaysian Estate Owners' Association (MEOA), East Malaysia Planters' Association (EMPA) and Sarawak Oil Palm Plantation Owners' Association (SOPPOA). (Source: The Star)

Conglo: JCorp's directors may not attend EGMs. Johor Corp (JCorp) directors representing the Johor and Federal governments are unlikely to attend the EGM's of Johor Corp's three public listed companies (Kulim, Damansara Realty, KPJ Healthcare) this month to remove Tan Sri Muhammad Ali Hashim as their respective chairman. (Source: The Star)

MRCB-Ecovest: Poised to bag river clean-up job. A joint venture between Ekovest Bhd and Malaysian Resources Corp Bhd (MRCB) is on the verge of receiving a letter of award from the government for a portion of the Klang Valley river beautification project that is worth RM8b. The Klang River clean-up project is part of a RM15b rehabilitation and development plan for the river, under the ETP. Another company eyeing the project is YTL Corp Bhds Wessex Water Ltd, which bided for the project with I-Bhd. (Source: The Edge Financial Weekly)

MRCB, IJM Land: Reconsider merger plans. Malaysian Resources Corp Bhd (MRCB) and IJM land Bhd could be taking another look at the merger plan. Meanwhile, IJM Land does not rule out the possibility of working with MRCB in a joint venture capacity rather than a merger of the two companies. (Source: The Edge Financial Weekly)

Boustead: In talks to buy army base land for RM8b project. Boustead Holdings Bhd is in talks with the government to buy the 98ha Batu Cantonment army base at Jalan Ipoh, Kuala Lumpur for a mixed commercial and residential properties project worth more than RM8b. The Batu Cantonment army base, which has been there for over 40 years, will be relocated. (Source: Business Times)

Aviation: Inaugural Riau Air Flight to Melaka. The inaugural Boeing 737-500 Riau Air flight from Riau to Melaka International Airport (LTAM) in Batu Berendam is expected to give the airport a boost. Riau Air would begin its thrice-weekly Pekan Baru-Melaka flights next week. Meanwhile, Riau Air is also eyeing air connections between Pekan Baru and Johor Bahru via Senai airport. (Source: Bernama)

Transmile to sell four aircraft for RM208m
More than 3 years after Transmile’s accounting scandal became public, the company is starting to address its debt problem by selling four aircraft for RM208.8m. This is seen as the first step towards paring its outstanding borrowings that total nearly RM530m. It announced that it had entered into a sale and purchase agreement with Federal Express Corp last Friday for the disposal of four MD-11f aircraft at USD17m each (approx RM52.23m). According to Transmile, these aircraft are not generating revenue and have been left idle since April 2008. (Financial Daily)

SAAG surges on RM239.5m rail deal in Melaka
Oil and gas firm SAAG Consolidated (M) saw its share price soar 28.5% amidst news its unit has secured a RM239.5m contract to design and build a 40km train tramway in Melaka. The company announced yesterday to Bursa Malaysia that its unit, OGS Asiapac Ltd, has secured a US$75m (RM239.5m) design, engineering, procurement, construction and commissioning (EPCC) contract from Mrails Tram (Melaka) SB on 23Dec, (Financial Daily)

Sapura Crest, Kencana expected to clinch O&G jobs soon
Sapura Crest Petroleum and Kencana Petroleum are in the running to bag major oil and gas contracts for the development of marginal oil fields, expected to be announced by Prime Minister Datuk Seri Najib Razak at the briefing on the progress of Economic Transformation Programme (ETP) today. (Financial Daily)

Benalec public tranche oversubscribed by 4.9 times while KSSC’s IPO receives warm response
Benelac Holdings, en route to a listing on the Main Market of Bursa Malaysia, has received an oversubscription rate of 4.92x for the 36.5m shares made available for public subscription. On a separate note, K Seng Seng Corporation’s IPO received warm response, with its initial share offer of six million shares for the public being oversubscribed by 14.99x. (Malaysian Reserve)

PFC Engr now major shareholder of APP
A company controlled by Datuk Abu Talib Mohamed, a director for various companies such as Kinsteel, Perwaja Holdings, Mycron Steel and others, has emerged as a major shareholder in APP Industries, after the ceramics pottery's major shareholders agreed to sell most of their stakes yesterday. In a filing to Bursa Malaysia yesterday, PFC Engineering SB, a company 80% owned by Abu Talib, will buy a 16.31% and 19.5% stake (or 35.8% stake in total) from APP group managing director Ow Hang Seng and one of APP's founder Cheah Sun Chuang, respectively, for RM14.2m in total. The deal triggers a conditional takeover offer by PFC Engineering, which will also offer to buy the rest of the APP shares for 45 sen each. Abu Talib, who is also the brother of Tan Sri Abu Sahid Mohamed, a major shareholder of Perwaja Holdings, intends to maintain the listing status of APP. Post-transaction, Ow is expected to have 3.75% stake in the company, while Cheah will own a 1.3% stake. (StarBiz)

Clear road ahead for bid on PLUS Expressways
Jelas Ulung Sb has failed to meet the deadline for placing the RM50m deposit required by PLUS Expressways in its bid to undertake the latter's businesses, effectively leaving only one formal offer that is by UEM Group (UEM) and the Employees Provident Fund (EPF) on the table. Yesterday was the deadline for all offers to comply with several conditions to acquire PLUS' businesses, such as coming up with a refundable RM50m cash deposit and an unconditional written confirmation that the offeror has the financial ability to undertake the transaction. It was also the deadline for any new bid for PLUS to be submitted. Despite yesterday's deadline, sources said MMC Corp remained interested in acquiring PLUS and would refer the matter to the Government for a decision on its bid made last year. (StarBiz)

Proton in talks to assemble vehicles in India
Proton Holdings has not ruled out the possibility that it is in talks with Indian automobile manufacturer Hindustan Motors to assemble its vehicles for the Indian market. “We are in talks with several parties in India. Right now, it's still too early to comment,” group managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir told StarBiz yesterday. He was responding to a report by The Times of India that Proton was close to tying up with Hindustan Motors for a contract manufacturing agreement to assemble its cars for the Indian market. When asked if Hindustan Motors was one of the parties that Proton was in talks with, Syed Zainal said: “I think that can be implied.” Hindustan Motors is known for its Ambassador car that is widely used as a taxi and government limousine. (StarBiz)

Perak allows Vale of Brazil to build jetty in Lumut
Vale International SA, whose transhipment project here has become the subject of a feud between two brothers who are also major shareholders of Integrax Bhd, has received the green light to build its own jetty. The Perak government has agreed to allow Vale to construct its own jetty in Lumut to accommodate its proposed iron ore transhipment project. (StarBiz)

KPS gets offer from Selangor government for its water assets
Kumpulan Perangsang Selangor (KPS) has received the conditional offer by Menteri Besar Selangor Inc (MBI) to acquire all the voting shares in Konsortium Abass SB (Abass) and Syarikat Pengeluar Air Sungai Selangor SB (Splash) for RM9.39 per share and RM5.95 per share. Abass is 100%-owned by Titian Modal SB, which in turn is 55%-owned by KPS, while Splash is 30%-owned by KPS, with the remainder owned by Gamuda (40%) and TSWA (30%). (Financial Daily)

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