20110905 1605 Malaysia Corporate Related News.

DiGi.Com Bhd : Additional spectrum to boost DiGi coverage
DiGi.Com Bhd, among nine companies vying for a block of the 2.6GHz next generation spectrum, said having more spectrum would help it improve coverage quality to subscribers in both urban and rural areas. Its head of strategy and business transformation, Christian Thrane, said that getting the long-term evolution (LTE) spectrum would allow them to deliver higher speeds for customers in urban areas who would move into 4G and free up currently used spectra. DiGi is in the process of modernising its network with LTE-ready equipment so that rollout can be swift once the spectrum is available. Thrane said DiGi would be able to tap the experience of its parent, the Telenor Group, in rolling out LTE in Malaysia if the company is awarded the spectrum. He added that they have launched the LTE high-speed broadband in Sweden and Norway and hope to deliver LTE in Malaysia by end 2012. Telenor owns 49.0% of DiGi, which has a base of 9.4 million subscribers, some 56.0% or 5.3 million of which use mobile Internet on a monthly basis. – The Edge

Bandar Raya Developments Bhd Goes : mid-range with Verdana
Bandar Raya Developments Bhd (BRDB) expects its RM800.0mil Verdana project at north of Mont’ Kiara to set a benchmark in lifestyle development in the mid-range residential segment in Kuala Lumpur. Verdana is an extension of BRDB’s brand of cosmopolitan lifestyle developments and is the company’s first foray into the midrange segment. BRDB, which has been developing land in Bangsar for 45 years and luxury apartments, is expanding its wings to build products of a different price range. BRDB chief marketing officer KC Chong said that they are now looking to build properties within the affordable price range, yet offering the lifestyle that we have been providing in all our other developments. Verdana will be developed in two phases over 4.4ha. The first phase comprises two 25-storey towers and a six-storey block with 298 units. It is priced at an average RM580 per sq ft with unit sizes ranging from 1,450 sq ft to 3,020 sq ft. – Business Times

Everest Group aims to list on Bursa by 2015
Fast-growing local courier and logistics entity, Everest Group of Companies, aims to list on Bursa Malaysia by 2015. Group managing director M. Andy said the company, with an annual turnover of about RM4.0m, was already there but did not want to rush into listing. “Listing on Bursa Malaysia is one way for Everest to go global and tap into opportunities which arise in line with our core business. “There are records of many companies that went for listing in a rush and later ended up in failure, instead of success,” he told Bernama.(StarBiz)

EPF steps up accumulation of AirAsia shares
The Employees Provident Fund (EPF) Board continued to raise its stake in AirAsia, with the latest acquisitions involving nearly 10m shares. A filing with Bursa Malaysia showed the EPF bought 4.3m shares on 25 Aug and 5.7m shares the next day. The latest acquisitions saw the EPF increasing its shareholding to 346.0m shares or 12.5%. (Financial Daily)

In an interview with the Edge, Halim Alamsyah, Deputy Governor in charge of bank  supervision at Bank Indonesia, said that the possibility of  a ceiling on ownership in  Indonesian banks is part of an overall policy review to enhance governance in Indonesian  banks. It is not aimed at Malaysian and Singaporean  shareholders or intended to be a  demand for more flexibility for Indonesian banks to operate in these two countries. CIMB  Group and Maybank own close to 100% of two of Indonesia’s top 10 banks, CIMB Niaga  and Bank Internasional Indonesia (BII).  
• He said that should the ceiling be eventually imposed, shareholders would be given a  long enough transition period to divest their stakes.
• On 11 Aug, Indonesia’s central bank said that it was temporarily freezing approvals for  new mergers and acquisitions in the sector, pending a decision on the shareholding  caps. But according to Halim, it is not true that they have stopped the process of  acquisition of banks. (Edge)

RHB Banking Group has withdrawn its applications to Bank Negara Malaysia to seek the  appointment of Renzo Viegas as MD of RHB Bank. This is because the group is  undergoing an internal reorganisation as part of the group’s efforts to enhance its  competitiveness. (The Edge)    

Sime Darby has defended the seemingly high price it is paying for its proposed acquisition  of a 30% stake in Eastern & Oriental Bhd (E&O) on the grounds that it had acted quickly  on an opportunity that presented itself and one that has good long-term prospects.
• “The E&O block has been on the market for a while and several parties were still looking  at the deal. Sime Darby acted on an opportunity and did so fast,” Sime Darby said in an  email response.
• Sime Darby also said the E&O acquisition did not only bring with it “land bank on Penang  island where land is scarce, but also a level of unique talent, branding, and experience  and expertise in a niche premium development.”
• When asked why Sime Darby did not consider just doing a joint venture with E&O rather  than buying the 30% stake, to achieve the same results, its reply was: “We judged this to  be the most propitious means of securing the most strategic value for Sime Darby.  Acquiring 30% creates a more permanent relationship.”
• Sime Darby also said that E&O's Tham “has stated that he will stay (at E&O) for at least  another three years. (Starbiz)  

Sime Darby Healthcare expects both its soon-to-open hospitals will post profit after tax  within three to five years. The group will open the 220-bed Sime Darby Medical Centre Ara  Damansara in the next quarter while the 300-bed Sime Darby Medical Centre ParkCity will  start seeing patients in early 2013.
• MD of the healthcare group Raja Azlan Shah Raja Azwa said that for a start, the hospital  in Ara Damansara will operate 73 beds while the ParkCity hospital will start with 70 beds.  Both hospitals will reach full capacity within five years from the openings. (BT)    

The price of  oil palm seeds, now at RM1.85 each, will be raised by 30% to RM2.35  starting Jan 2012. BT also understands that the higher grade semi-clonal seeds will be  priced 45% more at RM2.70. "Over the years, we have invested heavily in oil palm  breeding. This has enabled us to improve the seeds for higher yields. Most of the major  seed producers in the country have also made similar price increases for 2012.  
• It has been RM1.85 per seed since 2007," said Applied Agricultural Resources Sdn  Bhd's (AAR) director of research Dr Kee Khan Kiang. AAR, which advises more than  350,000ha of oil palm and rubber estates in Malaysia and Indonesia, is an associate  company of Boustead Holdings Bhd and Kuala Lumpur Kepong Bhd.  
• Since 1986, AAR has been one of the 10 licensed seed producers in the country,  contributing to the replanting of unproductive trees so as to raise the national oil palm  yield. According to Malaysian Palm Oil Board, some 40m germinated seeds have  already been planted by farmers in the first seven  months of this year. Most of the  replanting of old trees have been carried out in Sabah and Peninsular Malaysia while  new plantings are undertaken in Sarawak.  
• For this year, Kee said, AAR is hoping to sell 8.5m oil palm seeds this year, having sold  7.2m last year."We already have confirmed bookings  for 8.6m seeds in hand with  deposits paid. Orders are still pouring in, but unfortunately, we cannot meet the demand  for this year," he said.(BT)  

Any new public listing of  Felda Global Group’s  units would not involve its settlers’ land  while the group would maintain a controlling interest of at least 51% post-listing, according  to its president Datuk Sabri Ahmad.
• On its successful business model of its maiden IPO of MSM Malaysia, Felda will  generally carbon copy the whole structure of MSM for future listing of its units.  (Malaysian Reserve)

The implementation of the heavy industrial park at Bagan Datoh, Perak will be undertaken  according to the terms of an agreement signed between Perbadanan Kemajuan Negeri  Perak (PKNP) and PEIH Holdings Sdn Bhd of which KYM Holdings Bhd will have a  37.5% interest.
• This agreement started off from a memorandum of understanding (MoU) entered on Dec  1, 2010 between KYM Development (Perak) Sdn Bhd, an indirect wholly owned  subsidiary company of KYM and PKNP.  
• KYM Perak and PKNP were to jointly evaluate the feasibility of the project. The MoU  expired on Wednesday. The project involves the reclamation of 3,400 acres and  construction of the infrastructure, including jetties. (Starbiz)    

AirAsia Philippines may start flights to Singapore, Hong Kong and Macau by the end of  next month once it gets regulatory approval. The unit targets to bolster its fleet to seven  planes by the end of 2012 and up to 16 jets in five years. (Bloomberg)  

Berjaya Corp  said the sale of its 50% stake in  Starbucks Coffee to  Berjaya Food at  RM71.698m or 13.5x P/E was based on Starbuck’s net profit of RM10.62m as at financial  year ended 30 Apr, 2011 and its potential for growth. Starbucks now has 119 stores across  Malaysia. (Malaysian Reserve)  

Salcon has been awarded a RM20.4m contract by Octagon Engineering to undertake  repair, upgrade and related works at Sungai Chukai near Kemaman, Terengganu. The  subcontract is for an 18-month period to Feb 2013. (Malaysian Reserve)  

Jaks Resources has come to contractual terms with relevant authorities and the  Vietnamese government on its proposed 2x600MW coal-fired power plant project in Hai  Duaong province, Vietnam. Construction of the plant  is slated to begin in the second quarter of 2013. (Malaysian Reserve)  

Toyota Motor will manufacture the Prius hybrid and its key parts in China in a bid to boost  sales in the world’s largest car market. This will  mark the first time the Japanese  automaker has produced key components such as motors and batteries for the petrolelectric hybrid in a facility outside Japan. (BT)  

Lion Forest Industries Bhd (LFIB) plans to acquire some 58,000ha of land in Kampong  Thom province, Cambodia, on a lease basis for the cultivation of oil palm and rubber trees.  The land would cost RM78.3m or RM1,350 per hectare. (Malaysian Reserve)