Tuesday, June 21, 2011

20110621 1217 Malaysia Corporate Related News.

KLCI chart reading :
correction range bound upside biased.

CIMB Bid for RHBCap to involve share swap
CIMB Group’s planned takeover of RHB Capital (RHBCap) will involve a share swap and should be seen as a value-creating merger rather than an acquisition, says CIMB chief Datuk Seri Nazir Razak. He expects CIMB to be able to come up with a merger proposal by the end of this month. (BT)

BAE Systems unit bags DRB-HICOM deal
DRB-HICOM has awarded a USD559m (RM1.6bn) contract to a unit of BAE Systems Inc, the world's biggest arms groups, to help design, develop and manufacture some 257 AV-8 8x8 wheeled armoured vehicles (AVs). In March, DRB-HICOM received a RM7.55bn contract from the Federal Government to supply the AVs. The project is expected to start this year and will be a major contributor to the group's profitability and revenue.(BT)

‘Cheap’ sale of MAA insurance arm
MAA Holdings appears to have sold its insurance business cheap for RM344m cash, valuing its assets at barely 1.36x book value, which is considerably lower than the recent transactions in the industry. In an announcement to furnish the details of the divestment, MAA Holdings said its wholly-owned subsidiary MAA Corp SB has entered into a conditional sale and purchase agreement with Zurich Insurance Co Ltd in relation to the proposed disposal. (Financial Daily)

Primus loses with costs amounting to RM1.05m
The Court of Appeal has unanimously dismissed Primus’s two appeals with costs , involving matters related to the RM5.06bn disposal of the assets and liabilities of EON Cap to Hong Leong Bank yesterday. The first dismissed appeal was for the decision by the High Court that ruled the resolutions passed at EON Cap’s EGM as valid. The second dismissed appeal was for the decision by the High Court that earlier dismissed with costs the petition filed by Primus against EON Cap and its directors over the takeover over by HLB for the entire assets and liabilities of EON Cap.(Starbiz)

AirAsia aims for three more Joint Ventures to grow ancillary income
AirAsia is aiming to set up three more joint ventures to grow ancillary income and is also in the midst of finalizing a deal which it will announce on Thursday to buy nearly 200 aircraft costing USD18bn that it needs to fuel growth from 2015 onwards. Fernandes aims to increase the low cost airline’s ancillary income to RM60 per passenger in 2012 Sources also reported that long-haul low-cost carrier AirAsia X has received the green light from the ministry of transportation to fly to new key routes such as Istanbul, Beijing, Shanghai, Osaka and Jeddah. (Starbiz)

AirAsia: AirAsia, CAE International plan aviation academy. AirAsia Bhd is teaming up with CAE International Holdings Ltd to set up an aviation academy and has set its sights to be the largest of its kind in Asean. The academy would provide training services for pilots, cabin crew, engineers, ramp handlers, guest services and aviation management. (Source: Bursa Malaysia)

UCSI Group plans to list two units
UCSI Group intends to list a few of its subsidiaries although it has yet to submit applications to the Securities Commission. UCSI Group has 22 subsidiaries in five main core divisions namely education, leisure and property, consultancy, food and technology and healthcare. Chairman and founder Datuk Peter Ng said the group was looking to list its leisure and property division, and was not interested in listing its education business. Education contributed some 40% of the group’s total revenue and would remain a revenue driver for the next three to five years. However, leisure and property might overtake education in the future, he said. (StarBiz)

Yinson wins RM75m contract
Integrated offshore services provider Yinson Holdings has secured a service contract potentially worth RM75m from PetroVietnam Technical Service Corp (PTSC) for the provision of offshore support vessel (OSV). Yinson announced its wholly-owned subsidiary, Yinson Marine Services SB has received a letter of intent from PTSC, for the said contract. (Starbiz)

Tradewinds allocates RM60m for refurbishment
Tradewinds Corp will allocated RM60m for the refurbishment of its hotels, which would be completed in three years. Group CEO Arief Nasran said the refurbishment of some hotels began last year and some started this year. He said the refurbishment may affect short-term rental income but would bring gains in the longer term. (Financial Daily)

Amcorp Properties sells London firm for RM134m
Amcorp Properties is selling London-based real estate investment firm for RM134m – a divestment that would put the company in a net cash position. Amcorp announced that its wholly owned unit, Walleng Enterprises SB, together with Golden Spectre Ltd, has signed a S&P agreement with Brittel Fund Trustees Ltd to dispose of the entire stake in Westlink for a net consideration of RM45.5m. (Financial Daily)

Energy: No subsidy to IPPs. Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui reiterated yesterday that the government has never allocated any form of subsidies for gas sold by Petronas to Independent Power Producers (IPPs). Instead, the lower price for gas sold to IPPs by Petronas is part of its foregone revenue, in line with the government's initiative to ensure that IPPs can maintain a low tariff rate. (Source: The Sun)

Transport: 60,000 daily traffic volume seen for new highway. LATAR Expressway (KL-Kuala Selangor Expressway), to be open to the public before the month ends, will see an initial average daily traffic volume of over 60,000 vehicles. The concessionaire of the highway is jointly owned by Bina Puri Holdings Bhd and Arena Irama Sdn Bhd. (Source: The Star)

UEMLand: Sets up Singapore subsidiary. The new subsidiary, Sunrise MS Pte Ltd is to provide consultancy, advisory and technical services relating to project development in Singapore. (Source: Bursa Malaysia) 

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