Wednesday, June 22, 2011

20110622 1018 Malaysia Corporate Related News.

KLCI chart reading :
correction range bound upside biased.

MAS exercises option to buy Boeing aircraft in USD800m deal
Malaysia Airlines (MAS) has exercised an option to buy 10 additional next-generation 737-800 aircraft from Boeing, in a deal said to be worth over USD800m (RM2.43bn). The national carrier’s latest deal means it has now placed 45 firm orders for the Boeing 737-800 aircraft. Managing director and chief executive officer Tengku Azmil Zahruddin Raja Abdul Aziz said the carrier decided to exercise the option in order to meet market demand. (BT)

CMC-led team wins LRT job for system works
CMC Engineering-Colas-Uniway, a Malaysian and British group, has edged out other contenders to land a RM673.9m contract to build a light rail transit (LRT) extension after it met all of the tender conditions. The contract covers engineering, procurement, construction, testing and commissioning of system works, Syarikat Prasarana Negara Bhd said in a statement issued yesterday the Kelana Jaya LRT line will be extended by another 17km from the Kelana Jaya station to Putra Heights. It will travel through 13 new stations. (BT)

MAAH shares slump on move to sell core unit
Shares of MAA Holdings Bhd (MAAH) slumped nearly 30% after the company agreed to sell its composite unit to Zurich Insurance Co Ltd for RM344m, effectively leaving it without a core business. At the close of trading yesterday, MAAH issued a statement to Bursa Malaysia, putting a damper on investors who may hold out in anticipation of a special dividend following the announcement of the sale. However, it was not all gloomy for MAAH shareholders as the company also disclosed that it will not fall foul of the Practice Note 16 listing requirements and that it has not triggered the cash criterion to be a cash company. (BT)

Time’s offer at sharp discount weighs on TdC stock
Time DotCom Bhd’s (TdC) share price dropped sharply in the wake of parent Time Engineering Bhd’s announcement that it planned to dispose of its 24.7% stale at 53 sen, a steep 33.7% discount from market value. The sharp discount came as a surprise to the market considering the common practice of companies maximising the value of the assets. (Financial Daily)

Tradewinds Plantation to grow downstream in rubber
Tradewinds Plantation Bhd plans to grow its downstream business in the rubber industry to make the commodity a meaningful contributor to the group’s earnings. Tradewinds Plantation had proposed to acquire Mardec Bhd for RM150m in acsh from Semi Bayu Sdn Bhd in 2009. But after a due diligence, Tradewinds Plantation said the purchase price has been reduced to RM140m. CEO, Chan Seng Fatt asid Mardec’s rubber processing business on its own is already a good business. In addition, he said Tradewinds Plantation has the advantage of an upstream business as well to support its downstream venture. (Financial Daily)

Genting: Resorts World NY to open on Oct 1. As lobbying for a casino licence in Miami, Florida goes on. Genting Group is looking at opening Resorts World New York as early as Oct 1, though works are taking longer than expected due to the historic Aqueduct's aged structure. (Source: The Edge Daily)

MAHB: Secures Eurocopter as anchor tenant of Subang airport. Eurocopter Malaysia Sdn Bhd has signed the 30-year lease with an option for an additional 30years. Eurocopter is looking to build a maintenance, repair and overhaul (MRO) services facility on a 7,000 sq m plot of land in the MAHB helicopter centre in Subang. (Source: The Edge Daily)

MAS: Orders 10 more 737-800s. Malaysia Airlines (MAS) has exercised an option to buy 10 Boeing 737-800s valued at some USD800m (RM2.4b) at curret list prices. MAS still has purchase rights for an additional 10 737-800s remaining from its initial 2008 contract. (Source: The Sun)

Auto: Car sales impacted by amended Act. Stakeholders in the automotive sector say the recent amendments to the Hire-Purchase Act 1967 (HPA) will hurt the car retail trade. Some said the amended Act is confusing and overly protected consumers to the detriment of car retailers. (Source: The Star)

Mining: Vale turns focus to Malaysia. Vale SA has forgone plans to build a distribution centre in China and will focus on making Malaysia its main hub for Asian sales. Vale is investing USD1.37b (RM4.16b) to set up a maritime terminal in Malaysia with capacity to dock its Valemax vessels and handle up to 30m tonnes of iron ore a year starting in the first half of 2014. (Source: Business Times)

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