Thursday, May 19, 2011

20110519 1024 Malaysia Corporate Related News.

KLCI chart reading :
side way range bound little upside biased. 
WCT bids for RM10bn projects to expand business
Construction and property outfit WCT Bhd has bid for projects worth more than RM10bn to expand its business and improve earnings. Chairman Datuk Ahmad Sufian said it has tendered for building and infrastructure projects in Malaysia, the Middle East and Vietnam. (BT)

WCT: Bids for RM2b construction projects. WCT Bhd hopes to secure at least RM2b worth of construction projects this year to replenish its current orderbook of RM3.7b. (Source: The Malaysian Reserve)

BCorp starts ops on region's largest sanitary landfill
Berjaya Corp (BCorp), through wholly-owned Berjaya Environmental Engineering (Foshan) Co Ltd, yesterday started operations on the Sanshui Bainikeng district sanitary landfill project, the largest in the region. The concession agreement for the RMB264m (RM123m) project was signed between Berjaya Environment Engineering and Construction Bureau of Sanshui district on 6 Feb 2009. Initial waste tipping fee or revenue is estimated at RMB123.50 (RM58) per tonne. Berjaya Environmental won the rights to build, operate, and maintain the landfill for 28 years and thereafter transfer the business to its China partner at no cost. (BT)

Latexx gets YTY merger proposal
Latexx Partners Bhd announced yesterday that it has received a letter from YTY Industry Holdings SB (YTY) which made an offer to merge its four wholly-owned subsidiaries with the former for RM1.37bn. In a filing to Bursa Malaysia, Latexx said the proposed merger would be carried out via the sale of YTY's entire equity interests in the subsidiaries to Latexx with 30% of the purchase price payable in cash. The balance is to be satisfied by the issuance of 382.2m new ordinary shares of 50 sen in Latexx, at an issue price of RM2.50 per share. On Monday, the company announced that a proposed buyout plan by Navis Asia VI management Company was aborted as both parties were unable to agree on definitive terms for the proposal. Earlier in January this year, Latexx had said that it had accepted an offer from Navis Asia to buy its entire business for RM852m or RM3.10 per share. (BT)  

Genting Bhd: Genting Sg investing in natural resources ventures, Resorts World at Sentosa fined. Genting Singapores wholly owned Northspring Global Ltd would be paying USD60m for 68.63% of Goldnature Investments Ltd, an investment holding company with a 51% interest in British Virgin Island-incorporated (BVI)Montbella Ltd. BVI has a portfolio of interests in natural resource ventures. Separately, the Casino Regulatory Authority of Singapore (CRA) has imposed financial penalties totaling SGD 530,000 (RM1.3m) on Resorts World at Sentosa Pte Ltd for four breaches of the Casino Control Act and its regulations. (Source: The Edge Financial Daily, The Malaysian Reserve)

GenP: Buys GBD Holdings for RM40m. Genting Plantation Bhds (GENP) wholly owned subsidiary GP Overseas Ltd has acquired the entire stake of GBD Holdings Ltd for RM40m to venture into downstream activities related to palm oil. (Source: Bursa Malaysia)

F&N: Disposes creameries division. Fraser & Neave Holdings Bhd ( F&N) has disposed its entire ice-cream business for RM11.5m to further consolidate and grow its core canned milk business, generating a profit of RM2.9m. (Source: Bursa Malaysia)

Economics: BNM announced further liberalisation of the foreign exchange administration rules with regards to direct investment abroad, inter-company loans and trade financing effective 1 June 2011. The measures are:
  1. Removal of the RM50m limit on investment in foreign currency assets by resident companies that meet the prudential requirements. The move basically frees up direct investment abroad (DIA) by Malaysian companies.
  2. Allowing resident companies to borrow any amount in Ringgit or foreign currency from their resident and non-resident non-bank related companies. This enables Malaysian companies to further enhance the efficient management of financial resources within a corporate group and provides greater flexibility on sources of competitive financing.
  3. Abolish the RM5m limit currently imposed on foreign currency trade financing obtained by residents from non-residents. In this regard, residents may obtain foreign currency borrowing, including foreign currency trade financing, up to the prevailing aggregate limit of RM100m for companies on a corporate group basis and RM10m for individuals. (Source: BNM)     

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