Monday, July 11, 2011

20110711 1113 Malaysia Corporate Related News.


KLCI chart reading :
pullback correction upside biased.

PLUS extends deadline
PLUS Expressways has extended the period to fulfill a condition precedent relating to its takeover by the Employees Provident Fund (EPF) and Khazanah Nasional via UEM Group to 30 Sept. Its announcement to Bursa Malaysia did not clearly disclose the condition being extended. The announcement said: “Certain approvals or consents required to be procured by PLUS and the joint offerors are still pending.” However sources close to the deal explain that this condition entails the toll concession agreement between PLUS and the Government. (Star Bizweek)

Berjaya Corp’s plan to privatise HK-listed Cosway puts Tan in the news again
Tan Sri Vincent Tan Chee Yioun is in the news again. Tan’s Berjaya Corp (BCorp) is seeking to privatise Cosway Corp (CCL), just about 20 months after listing the profitable direct selling business on the Hong Kong Stock Exchange (HKSE). BCorp had first listed the company on Bursa Malaysia back in 1990 but decided to privatise it in 2007 because the owners felt that the company was undervalued on the market. BCorp then listed CCL on HKSE in 2009 to tap into the massive China market with its consumer product. (Star BizWeek)

First MRT line likely to cost RM20bn
Although the actual cost of the country’s first mass rapid transit (MRT) system will be disclosed in September due to a 50% reduction in land acquisition and other tweaks to the initial alignment, estimates have put the price tag for the first three lines at around RM20bn. Land Public Transport Commission (SPAD) CEO Mohd Nur Kamal said more time was needed to finalise the cost as the revised alignment was only recently approved given the changes to accommodate public feedback. (Star Bizweek) Please see attached report.

No deal yet on Temasek’s AFG stake sale
While speculation is rife that the Singapore government’s investment arm Temasek Holdings and co-investor Langkah Bahagia SB are keen to divest stake of close to 30% in Alliance Financial Group (AFG), sources said they have yet to seek the advice of investment banks on how to proceed. “No mandate has been given out yet on this deal,’ sources familiar with the situation said. Market talk has it that Temasek may look to sell its stake in AFG, hot on heels of its partial stakes divestment in two of China’s biggest banks – Bank of China and China Construction Bank – announced last week. (Star Bizweek)

Catcha Media sees a big catch in online advertising
Catcha Media Bhd, one of the country's largest new media companies, is planning to launch websites for all its magazines as part of its plan to grow online advertising business. Group CEO Patrick Grove said currently, there are four magazines that have their own websites namely Juice, Home-Pride, Mint and Clive. "Juice just launched its own website. Stuff and Prestige magazine will be launching its websites this year. So when we launch these websites, they will get integrated into the MSN platform," he said. (BT)

MASkargo plans expansion beyond Malaysian shores
Malaysia Airlines Cargo SB (MASkargo), the cargo arm of national carrier Malaysia Airlines (MAS), plans to expand its integrated cargo handling services beyond the Malaysian borders, hopefully within the next 12 months, eyeing China as a possible maiden overseas hubbing initiative. To date, the company’s ground handling hubs are based locally, which are in KL International Airport (KLIA) in Sepang, Penang, Kota Kinabalu in Sabah and Kuching, Sarawak. Looking at the initiatives taken by the Chinese government in beefing up its manufacturing sector, particularly with the opening of new areas within the inland areas of Chengdu and Chongqin, MASkargo MD Shahari Sulaiman said it is timely for the company to have a stronger permanent footprint in one of the world’s fastest growing economies. (Malaysian Reserve)

Bumi Armada may have raised RM2.7bn in IPO
Bumi Armada, a company controlled by billionaire T. Ananda Krishnan, raised RM2.66bn after pricing the shares at the upper half of its indicative range in Malaysia’s biggest IPO this year, two people familiar with the matter said. The oil and gas services company sold shares at RM3.03 each, said the people who asked not to be named as the information is still private. (Star Bizweek)

Latexx: Due diligence on YTY almost over. Latexx Partners Bhd is poised to complete a due diligence on YTY Industry Holdings Sdn Bhd by as early as next month. Latexx is proposing to take over YTY for RM1.25b by paying 30% in cash, with the balance of the assets being swapped for Latexx shares. (Source: Business Times)

Ivory: Surges on hope of land award. Ivory Properties Group Bhd's share price has surged on anticipation that the Penang state government will decide this week if it is to award the company the rights to help develop 40ha of land in Bayan Mutiara. (Source: Business Times)

Dijaya: TAEL One buys more shares. TAEL One Partners Lts, a Cayman Islands-incorporated private equity firm, has raised its stake in Dijaya Corp Bhd to 7.25% after acquiring another 10.3m shares last Friday. (Source: The Sun)

O&G: OM to build RM210m plant in Q4. OM Holdings Ltd (OMH) expects to start construction of its proposed USD70m (RM210m) manganese smelting and sintering plant in Tanjung Langsat Industrial Complex, Johor Baru in the fourth quarter this year. The Australian public-listed company said land clearing works for the project site is now carried out by Johor Corp. (Source: The Star)

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